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For Feb. 12, 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: 15,973.84; +313.66; +2.00%
S&P 500: 1,864.78; +35.70; +1.95%
Nasdaq: 4,337.51; +70.68; +1.66%
The Dow Jones Industrial Average today (Friday) gained more than 313 points thanks to a rebound in financial and energy stocks, which had faced a brutal five-day sell-off. Concerns about the global banking system and economic growth continue to weigh on investor sentiment; however, rising commodity prices and strong consumer data pushed the markets higher. Shares of Apple Inc. (Nasdaq: AAPL) were up on news that the company will unveil its next iPhone and iPad models on March 15. The firm said it will begin selling the next-generation models that same week.
The CBOE Volatility Index (VIX) – Wall Street's fear gauge – fell 10.1%.
On the economic front, New York Fed President William Dudley said in a speech at the Economic Club of New York that the U.S. economy has "quite a bit of momentum." He also brushed aside any chatter about the use of negative interest rates by the Fed. Meanwhile, the U.S. Commerce Department reported strong consumer spending in January, which should dismiss concerns about a recession in the near term. The U.S. dollar gained against a basket of global currencies as investors speculated on a possible rate hike in March.
Top Stock Market News Today
- Stock Market Today: All 10 major S&P sectors moved higher on Friday, led by strong gains in the materials, financial, and energy sectors. Banks stocks have been under pressure due to threats from negative interest rates, exposure to weakness in the energy markets, and worries about global growth. Shares of JPMorgan Chase & Co. (NYSE: JPM) jumped 8.4% and led the rally after the company's CEO Jamie Dimon announced he was purchasing $25 million worth of shares in the bank's stock. Shares of Deutsche Bank AG (NYSE: DB) gained more than 12% after a weeklong sell-off, while Credit Suisse Group AG (NYSE ADR: CS) gained more than 9%.
- Oil Prices: Crude oil prices rebounded from yesterday's 13-year lows following an announcement from one member of the Organization of the Petroleum Exporting Countries (OPEC) that the cartel will consider production cuts. WTI crude oil surged 12.3% to hit $29.44 per barrel. Meanwhile, Brent crude rallied 11% to hit $33.36 per barrel. Shares of Exxon Mobil Corp. (NYSE: XOM) gained 1.8%, while shares of Chevron Corp. (NYSE: CVX) added 2.9%.
- On Tap Next Week: On Monday, U.S. markets will be closed in observance of Presidents Day. On Tuesday, a busy economic calendar includes speeches from three members of the U.S. Federal Reserve, including Minnesota Fed Bank President Neel Kashkari. Investors will also be keeping an eye on the monthly Housing Market Index and an update to the Empire States Manufacturing Survey. Companies set to report quarterly earnings include Rackspace Hosting Inc. (NYSE: RAX), Fossil Group Inc. (Nasdaq: FOSL), Cerner Corp. (Nasdaq: CERN), Cheesecake Factory Inc. (Nasdaq: CAKE), Jack in the Box Inc. (Nasdaq: JACK), and Devon Energy Corp. (NYSE: DVN).
Stocks to Watch: FEYE, GRPN, RRGB, WYNN
- Stocks to Watch No. 1, FEYE: Shares of FireEye Inc. (Nasdaq: FEYE) slipped 3.3% after the cybersecurity company warned of a coming slowdown in spending for its services. The firm also projected a larger than expected loss in the first quarter and announced a shakeup of its board of directors.
- Stocks to Watch No. 2, GRPN: Shares of Groupon Inc. (Nasdaq: GRPN) popped more than 29% after the online discount site announced a stronger fourth-quarter earnings report than Wall Street anticipated. The firm also said 85% of its sales come from its top ten markets.
- Stocks to Watch No. 3, RRGB: Shares of Red Robin Gourmet Burgers Inc. (Nasdaq: RRGB) surged more than 7.1% after the company reported stronger than expected fiscal fourth-quarter top-line earnings. The fast-food chain beat per-share earnings expectations of $0.80 by $0.06. The firm was slightly below bottom-line revenue expectations of $287.5 million.
- Stocks to Watch No. 4, WYNN: Shares of Wynn Resorts Ltd. (Nasdaq: WYNN) rose 15.8% after the casino operator reported stronger than expected quarterly profits. The company has been under pressure over the last year as concerns about casino operations in Macau, China, dampen its outlook. The firm's CEO Steve Wynn says the Macau outlook is improving, but a decline in gaming revenue over the last two years precipitated the stock's decline.
Despite today's gains, the question still lingers – are we headed for a stock market crash, correction, or bear market? Here's what our Money Morning experts predict will happen in 2016…
What Investors Must Know This Week
- The $600 Million Signal That Oil Prices Are About to Rise
- How to Prepare for a Global Recession in 2016
- This Easy Investing Strategy Can Lead to 2,426% Profits
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.