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For Nov. 6, 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: 17,910.33; +46.90; +0.26%
S&P 500: 2,099.20; -0.73; -0.04%
Nasdaq: 5,147.12; +19.38; +0.38%
The Dow Jones Industrial Average today (Friday) added 46 points as markets now anticipate the U.S. Federal Reserve will tighten monetary policy and raise rates next month for the first time since 2006. The odds of a December interest rate hike jumped to 69.8%, according to CME FedWatch, after the U.S. Labor Department released a very strong employment report for the month of October. The U.S. unemployment rate fell to 5% for the first time since April 2008, and it represents the level at which the central bank considers "full employment." Nonfarm payrolls added 271,000 jobs last month. In addition, weekly wages increased by an average of $0.09.
Meanwhile, in what took seven years to decide, the Obama administration announced it has formally rejected the Keystone XL Pipeline proposal, marking a significant win for environmentalist groups that have long lobbied against the project. The pipeline – run by TransCanada Corp. (NYSE: TRP) – would have transported more than 850,000 barrels of crude oil each day from Alberta, Canada to the U.S. Gulf Coast refining network. Shares of TRP slumped more than 5% on the news.
Top Stock Market News Today
- Stock Market News: Seven of 10 S&P sectors were in the red today, with utilities stocks showing a massive slump of 3.2% on the day. Shares of Consolidated Edison Inc. (NYSE: ED) dragged down utilities after the company missed top and bottom line earnings expectations. Meanwhile, speculation of a December rate hike pushed the financial sector up roughly 0.6%. The "Too Big to Fail" banks saw the strongest gains on the day. Shares of JPMorgan Chase & Co. (NYSE: JPM) added 3%, and Bank of America Corp. (NYSE: BAC) gained 3.7%. Shares of Citigroup Inc. (NYSE: C) saw a 3.2% bump, and Goldman Sachs Group Inc. (NYSE: GS) added 3.7%.
- Oil in Focus: Oil prices slumped as the dollar showed solid gains against a basket of international currencies. The strengthening greenback offset news that the U.S. rig count fell by another six last week, according to Baker Hughes Inc. (NYSE: BHI). December WTI oil prices slipped 2% to hit $44.29 per barrel, while Brent crude prices dipped 1.2% to hit $47.42.
- On Tap Next Week: Interest rate chatter will continue on Monday in the wake of today's strong employment report. Investors will pay attention to a speech by Boston Federal Reserve Bank President Eric Rosengren. On the international front, pay attention to monthly trade figures from Germany, as markets look for clues into the nation's exposure to slowing economic growth. Companies reporting earnings include Priceline Group Inc. (Nasdaq: PCLN), Rackspace Hosting Inc. (NYSE: RAX), Jazz Pharmaceuticals Plc. (Nasdaq: JAZZ), Lions Gate Entertainment Corp. (NYSE: LGF), Hertz Global Holdings Inc. (NYSE: HTZ), and Atwood Oceanics Inc. (NYSE: ATW).
Stocks to Watch: NOC, BA, LMT, TM, VLKAY, BHI, HAL
- Stocks to Watch No. 1, NOC: Shares of Northrop Grumman Corp. (NYSE: NOC) dipped nearly 1.3% as the company prepares to report earnings for the fiscal fourth quarter. But the reason the firm made headlines is its rivals Boeing Co. (NYSE: BA) and Lockheed Martin Corp. (NYSE: LMT) have filed a protest against a contract issued by the U.S. Air Force and Northrop to build a new long-range strike bomb. Both companies objected to the process of choosing a supplier, calling it "fundamentally flawed." Whether this will jeopardize the deal remains to be seen, but it is clear tensions are rising between the Air Force and its suppliers over this deal.
- Stocks to Watch No. 2, TM: Shares of Toyota Motor Corp. (NYSE ADR: TM) slipped more than 1.5% after the company slashed its full-year revenue outlook yesterday. The company cited weakened sales in Asian markets, which have seen a slump in demand over the last two quarters. The announcement could see the company lose its title as the world's largest auto manufacturer, which it recently earned in the wake of an emissions scandal at Volkswagen AG (OTCMKTS: VLKAY).
- Stocks to Watch No. 3, BHI: Shares of Baker Hughes Inc. (NYSE: BHI) gained more than 4.4% on news the company will be purchased by Halliburton Co. (NYSE: HAL) in a deal worth $34 billion.
What Investors Must Know This Week
- Grab Double-Digit Gains from This Analyst "Fail"
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- Brace Yourself for This $2 Trillion Global Disruption
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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.