The Dow Jones Industrial Average today (Monday) gained more than 304 points as traders now anticipate the U.S. Federal Reserve will not raise interest rates in 2015 after Friday's weaker than expected jobs report. This morning, the United States and 11 other Pacific Rim nations announced an agreement on the Trans-Pacific Partnership (TPP), the most ambitious trade pact in decades. Despite significant skepticism from Congress, the new deal will create a massive free-trade zone that comprises 40% of the global economy.
The S&P 500 Volatility Index (VIX), the market's fear gauge, dipped 7.9% on the day.
Top Stock Market News Today
Stock Market News: All 10 S&P sectors showed gains, with the energy sector providing the biggest pop to the market. Healthcare stocks lagged against the other nine sectors, adding less than 0.1% on the day. Biotech stocks continued their sell-off with the iShares Nasdaq Biotechnology Index ETF (Nasdaq: IBB) falling 0.7%.
Oil Prices Rise: Oil prices were pushing higher on Monday on news Russia plans to speak with OPEC members about the impact of oversupply on the global oil markets and news that gasoline prices surged. WTI oil prices gained 1.6% to hit $46.34 per barrel, while Brent crude prices added nearly 2.2% on the day. Exxon Mobil Corp. (NYSE: XOM) gained 1.2%, while Chevron Corp. (NYSE: CVX) added more than 3% today.
On Tap Tomorrow: On Tuesday, traders should keep an eye on an update on the U.S. trade balance level for August and a speech from San Francisco Federal Reserve Bank President John Williams, who will discuss the regional bank's outlook for the U.S. economy. Companies reporting earnings tomorrow include Yum! Brands Inc. (NYSE: YUM), PepsiCo Inc. (NYSE: PEP), Team Inc. (NYSE: TISI), and NovaGold Resources Inc. (NYSEMKT: NG).
Stocks to Watch: VRX, APP, GE, GLEN, BP
Stocks to Watch No. 1, VRX: Shares of Bill Ackman-backed biotech giant Valeant Pharmaceuticals Intl. Inc. (NYSE: VRX) fell by more than 10% after the firm received a downgrade from investment firm Morgan Stanley (NYSE: MS). The bank raised concerns about Valeant's ability to improve financial growth through its strategy of mergers and acquisitions. The stock is off more than 30% in the last two months as Congress aims to investigate the firm over allegations of price gouging of specialty drugs.
Stocks to Watch No. 2, APP: Shares of American Apparel Inc. (NYSEMKT: APP) cratered to pennies after the retailer filed for Chapter 11 bankruptcy protection. The announcement comes a year after its board of directors ousted controversial CEO Dov Charney over multiple allegations of personal misconduct. According to reports, the firm highly doubts it will remain in business. American Apparel was once a $1 billion company and will use bankruptcy protection laws in order to begin a restructuring process.
Stocks to Watch No. 3, GE: Shares of General Electric Co. (NYSE: GE) jumped more than 5% on news activist investor Nelson Peltz and his hedge fund Trian Fund Management has built a 1% stake in the organization. Peltz's position represents a $2.5 billion stake. Peltz has indicated he will not try to obtain a board seat on the multinational industrial giant's board. Here's a breakdown on why GE is a great foundational investment for your portfolio.
Stocks to Watch No. 4, GLEN: Shares of Glencore Plc. (LON: GLEN) saw shares rise more than 21% today. MoneyMorning Global Credit Strategist Michael Lewitt says the Glencore situation is still playing out. Lewitt likens it to an "eerie, picture-perfect replay of what happened in the AIG meltdown of 2008." Here's a breakdown of the company's struggles.
Stocks to Watch No.5, BP: Shares of BP Plc. (NYSE ADR: BP) were up nearly 3% on the day despite news the company will pay roughly $20.8 billion to settle civil suits related to the 2010 oil spill in the Gulf of Mexico. The lawsuits come from five states and the federal government and cover violations of the Oil Pollution Act and the Clean Water Act.
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.