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For Jan. 26, 2016, 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: 16,167.23; +282.01; +1.78%
S&P 500: 1,903.63; +26.55; +1.41%
Nasdaq: 4,567.67; +49.18; +1.09%
The Dow Jones Industrial Average today (Tuesday) gained 282 points as oil prices surged on renewed optimism that OPEC and non-OPEC producers will collaborate to curb production and reduce the global supply glut. The Dow Jones received a strong boost from blue-chip stocks including 3M Co. (NYSE: MMM), Johnson & Johnson (NYSE: JNJ), and Procter & Gamble Co. (NYSE: PG).
The CBOE Volatility Index (VIX) – Wall Street's fear gauge – slumped nearly 7%.
On the economic front, the Fed Open Market Committee kicked off its first meeting on monetary policy of 2016. Economists don't anticipate the central bank will alter interest rates due to the sharp downturn of the S&P 500 and the broader financial sector since the beginning of the year. Meanwhile, November housing prices grew at their fastest pace – 5.8% – since July 2014. Housing stocks rallied on the news. Shares of D.R. Horton Inc. (NYSE: DHI) added 3.6%, while Lennar Corp. (NYSE: LEN) stock gained 4.7%.
Top Stock Market News Today
- Stock Market Today: All 10 major S&P sectors were positive this afternoon with energy stocks and materials stocks leading the way. Shares of Barrick Gold Corp. (NYSE: ABX) added 2.8%, while International Paper Co. (NYSE: IP) added 0.9%. Markets were rising as several key Dow components reported stronger than expected earnings.
- Oil on Display: Crude oil prices were up this morning thanks to a rise in optimism over a possible deal between OPEC and non-OPEC producers to address a major global supply glut. OPEC has long pushed for non-members to make concessions and cut production. Although Russia has refused to comply, Iraq's oil minister has hinted there may be flexibility for an agreement between both sides. March WTI crude prices climbed 3.7% to close at $31.45. Meanwhile, Brent crude gained 4.2% to settle at $31.80 per barrel. Shares of Chevron Corp. (NYSE: CVX) and Exxon Mobil Corp. (NYSE: XOM) were up 4% and 3.7%, respectively.
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- On Tap Tomorrow: On Wednesday, the Fed Open Market Committee will announce its monetary policy guidance at the conclusion of the first meeting of the year. Meanwhile, oil prices will be in focus when the U.S. Energy Information Administration announces weekly oil inventories. Companies set to report quarterly earnings include Facebook Inc. (Nasdaq: FB), Qualcomm Inc. (Nasdaq: QCOM), eBay Inc. (Nasdaq: EBAY), SanDisk Corp. (Nasdaq: SNDK), Texas Instruments Inc. (Nasdaq: TXN), Boeing Co. (NYSE: BA), Biogen Inc. (Nasdaq: BIIB), Ferrari NV (NYSE: RACE), and Las Vegas Sands Corp. (NYSE: LVS).
Stocks to Watch: S, TWTR, AXP, AAPL, COH, WTW
- Stocks to Watch No. 1, S: Shares of Sprint Corp. (NYSE: S) were up more than 19% after the company hiked its forward guidance for 2016. The firm announced its turnaround effort has begun to work and reported earnings that were slightly better than Wall Street expectations.
- Stocks to Watch No. 2, TWTR: Shares of Twitter Inc. (NYSE: TWTR) were down 0.2% after CEO Jack Dorsey announced Leslie Berland will become the company's new chief marketing officer. Berland is an executive at American Express Co. (NYSE: AXP), where she serves as executive vice president of global advertising, marketing, and digital partnerships.
- Stocks to Watch No. 3, AAPL: After the bell, Apple Inc. (Nasdaq: AAPL) will report fiscal Q1 2016 earnings. The technology giant is expected to report earnings per share (EPS) of $3.24 on $76.4 billion in revenue, but Apple is under pressure from weakening demand for its iPhone 6 and iPhone 6S products. Investors are also on edge regarding the company's exposure to China. Despite the cloudy forecasts for AAPL stock, here's the case why Apple will defy analyst expectations.
- Stocks to Watch No. 4, COH: Shares of Coach Inc. (NYSE: COH) surged 9.8% after the retailer announced its first quarterly sales increase in nearly three years. The handbag retailer saw sales jump 7%. Store and product revenue bumped up 4.4% to $1.3 billion. The company cited strong sales in China.
- Stocks to Watch No. 5, WTW: Shares of Weight Watchers International Inc. (NYSE: WTW) surged nearly 20% on news that investor and spokeswoman Oprah Winfrey announced she has lost 26 pounds using the company's plan. During an interview, Winfrey said she began the weight-loss plan in August.
What Investors Must Know This Week
- Where We'll Find Our Biggest Profits This Year
- What a Chinese Stock Market Crash Means for Investors
- Your "Buy List" to Profit from Volatility in 2016
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.