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How Did the Stock Market Do Today?
S&P 500: 1,958.08; -32.12; -1.61%
Nasdaq: 4,827.23; -66.72; -1.36%
The Dow Jones Industrial Average today (Friday) slid 289 points after investors weighed yesterday's decision by the U.S. Federal Reserve. Yesterday, the central bank elected to keep interest rates near zero stoked amid concerns about the potential impact of continuing weak global growth on U.S. companies. Meanwhile, a slump in oil prices weighed down energy stocks. Shares of Chevron Corp. (NYSE: CVX) and Exxon Mobil Corp. (NYSE: XOM) both fell more than 2.2% on the day.
Rick Rieder, a top bond manager at BlackRock Inc. (NYSE: BLK), said today he expects the Federal Reserve to raise interest rates during its December meeting. The reason for the delay centers on inflation, which we break down right here.
Top Stock Market News Today
- Stock Market News: In a press statement on Thursday, the U.S. central bank said "recent global economic and financial developments may restrain economic activity somewhat and are likely to put further downward pressure on inflation in the near term." Today, the dollar slumped, but still beat out the euro. Many anticipate the Fed's rate decision will put pressure on the European Central Bank to further ease the continental currency.
- Oil Prices Slip: Oil prices weakened after the Federal Reserve announced plans to maintain its interest level and expressed concerns about the broader economic worries about global demand. Today, WTI prices dipped 4.5% to reach $44.79. Meanwhile, Brent oil prices fell 3% to hit $47.60 per barrel. Here's a deeper dive into why oil prices fell today.
- On Tap Monday: Next week, companies reporting earnings include Red Hat Inc. (NYSE: RHT), Lennar Corp. (NYSE: LEN), IGATE Corp. (Nasdaq: IGTE), Casey's General Stores Inc. (Nasdaq: CASY), and Nordic American Tanker Ltd. (NYSE: NAT).
Stocks to Watch: FCX, KO, ADBE
- Stocks to Watch 1, FCX: Shares of Freeport-McMoRan Inc. (NYSE: FCX) slipped 11% on news the company raised $1 billion in an "at-the-market" offering of common stock and said it will sell another $1 billion.
- Stocks to Watch No. 2, KO: Shares of The Coca-Cola Co. (NYSE: KO) slipped more than 1% today after the Internal Revenue Service (IRS) informed the global beverage giant that it owes nearly $3.3 billion after an audit found the company's revenue should have been higher between 2007 and 2009.
- Stocks to Watch No. 3, ADBE: Shares of Adobe Systems Inc. (Nasdaq: ADBE) added 1.2% after the company beat Wall Street third-quarter earnings expectations after the closing bell yesterday. Adobe reported a quarterly revenue increase of 21% to $1.22 billion and beat consensus per-share earnings expectations by $0.04. However, the company did provide a weaker outlook for this quarter, weighing down investor confidence.
What Investors Must Know This Week
- $200 Trillion Debt Bubble to Spark Massive Sell-Off
- Cash In on a Strong Dollar and Weak Stocks
- How to Double Your Money: A Step-by-Step Guide
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About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.
Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.