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For Oct. 28, 2015, here's the top stock market news and stocks to watch based on today's market moves…
How Did the Stock Market Do Today?
Dow Jones: 17,779.52; +198.09; +1.13%
S&P 500: 2,090.35; +24.46; +1.18%
Nasdaq: 5,095.69; +65.55; +1.30%
The Dow Jones Industrial Average today (Wednesday) gained 198 points as investors parse through today's FOMC statement to gain insight on when the central bank might increase interest rates. The U.S. Federal Reserve left interest rates untouched during its seventh meeting this year, but left open the possibility that monetary policy makers may hike the benchmark rate in December.
Shares of Goldman Sachs Group Inc. (NYSE: GS) added more than 2.7% and provided the biggest boost to the Dow and S&P 500. Meanwhile, shares of Apple Inc. (Nasdaq: AAPL) added another 4% on the day after the company reported the single largest yearly profit of any company in the history of the markets.
Top Stock Market News Today
- Stock Market News: Nine of 10 S&P sectors were on the rise today, with energy and financial stocks leading the way. A rise in oil prices pushed energy companies up, while an optimistic statement by the Federal Reserve pushed banking stocks upward. Shares of Bank of America Corp. (NYSE: BAC) jumped 5.4%; shares of Citigroup Inc. (NYSE: C) added 4%, while JPMorgan Chase & Co. (NYSE: JPM) added 2.9%.
- Oil Prices Soar: Oil prices surged after the Fed said it would hold interest rates at current levels. December WTI oil prices jumped 5.7% to hit $45.65 per barrel in afternoon trading, while Brent crude prices added 4.2% to hit $48.78. The U.S. Energy Information Administration (EIA) helped boost the rally on news that crude inventories increased by 3.4 million barrels last week, in line with analyst expectations. That said, the figure was still below the 4.1 million rise forecast by the American Petroleum Institute. Here's a detailed breakdown of oil's gains today.
- On Tap Tomorrow: On Thursday, weekly jobless claims and updates on weekly natural gas inventories will take a backseat to a third-quarter GDP release from the U.S. Commerce Department. Meanwhile, Atlanta Federal Reserve President Dennis Lockhart will speak on monetary policy and offer his take on the interest rate debate. Companies reporting earnings tomorrow include Boston Beer Co. Inc. (NYSE: SAM), Expedia Inc. (Nasdaq: EXPE), First Solar Inc. (Nasdaq: FSLR), Monster Worldwide Inc. (NYSE: MWW), Baidu Inc. (Nasdaq ADR: BIDU), Starbucks Corp. (Nasdaq: SBUX), LinkedIn Corp. (NYSE: LNKD), and Mastercard Inc. (NYSE: MA).
Stocks to Watch: CBI, AIG, WBA, RAD, HOT, DMND
- Stocks to Watch No. 1, CBI: Shares of Chicago Bridge & Iron Company NV (NYSE: CBI) surged more than 15% after the company announced plans to divest its nuclear business to Westinghouse Electric Co. for $229 million.
- Stocks to Watch No. 2, AIG:Shares of American International Group Inc. (NYSE: AIG) added more than 4.8% after activist investor Carl Icahn announced he has taken a significant stake in the firm. The hedge fund manager is pushing the company – which nearly collapsed in 2008 during the Great Recession – to break up. Icahn wants the firm to spin off its life and mortgage divisions into public companies.
- Stocks to Watch: No. 3, WBA: Shares of Walgreens Boots Alliance Inc. (Nasdaq: WBA) slipped nearly 11% after the company beat fiscal fourth-quarter earnings expectations but disappointed on the revenue side. The company reported an EPS of $0.88, beating Wall Street expectations of $0.81 per share. However, the firm did fall slightly short of revenue expectations. The strong report comes a day after announcing the company will purchase smaller rival Rite Aid Corp. (NYSE: RAD) for at least $10 billion.
- Stocks to Watch No. 4, HOT:Shares of Starwood Hotels & Resorts Worldwide Inc. (NYSE: HOT) added another 6.3% (after gaining nearly 9% Tuesday) on news three Chinese companies are seeking to purchase the global hotel and leisure company. The potential deal for the $12 billion firm could be the largest takeover of an American company by a Chinese firm in corporate history.
- Stocks to Watch No. 5, DMND: Shares of Diamond Foods Inc. (Nasdaq: DMND) added nearly 9% on news the snack maker has agreed to be purchased by rival Snyder's-Lance Inc. for roughly $1.27 billion. The deal is part of a larger trend of snack companies moving away from processed foods and to more natural ingredients like nuts and kettle chips.
What Investors Must Know This Week
- The Fastest Way to Profit from a $709 Billion Industry Shift
- Five Tech Stocks That Soared While the Markets Tanked
- Here's Where the Next Oil Sector Profits Will Be Made
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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.