Monday's trading session was just another sign that the U.S. Federal Reserve is holding the markets hostage with mixed messages on the timing of its next interest rate hike. Like a dog told to come from across the yard while its leash is tied to a tree, the Dow Jones Industrial Average didn't go anywhere today as traders await a speech from Fed Chair Janet Yellen on Tuesday.
Yellen is expected to offer some insight on the upcoming FOMC meeting in April; however, we predict she will simply confuse everyone like she did during her most recent press conference.
Here's what you need to know about the markets on March 28, 2016.
Dow Jones: 17,535.39; +19.66; +0.11%
S&P 500: 2,037.05; +1.11; +0.06%
Nasdaq: 4,766.79; -6.72; -0.14%
Now, here's the top stock market news today...
Oil prices slipped on thin volumes as the European markets were closed to observe the Easter holiday weekend. The big news today was that global energy producers have locked in April 17 as the date for a meeting in the Qatari capital Doha to discuss a potential freeze on oil output. Ten nations have confirmed they will attend the meeting. Libya, the country with the highest break-even oil price in the world, will not be present. However, the biggest speculation centers on whether Iran will take part in the meetings. Previously, the country said it will not take part in the plan until it increases its daily shipments to at least four million barrels.
It was another bad day for hedge fund manager Bill Ackman. U.S. legislators have asked Ackman for information about drug price hikes in the pharmaceutical industry. The investigation is tied to his large stake in Canadian drug company Valeant Pharmaceuticals International Inc. (NYSE: VRX), which has been facing more and more problems each day. Shares of VRX stock were off 7.1% after the firm increased the price of one of its drugs by 100%.
On the economic front, "core" personal consumption expenditures (PCE) increased more than economists had anticipated in February. That's good news for the overall economy, and the news boosts the odds that the Federal Reserve will hike rates in April.
But the big talk today was about Yahoo! Inc. (Nasdaq: YHOO). Rumors are circulating that Microsoft Corp. (Nasdaq: MSFT) is chatting with private equity firms about supporting the financing needed to take over Yahoo. The talks are preliminary as Yahoo considers the sales of its core businesses. YHOO stock added 1.1% on the day, which is rather underwhelming. Following activist hedge fund Starboard Value's call for a complete overhaul of Yahoo's board of directors, investors just aren't jumping on board or anticipating a company offering a significant bid for any of the firm's assets.
Now, let's look at the day's biggest stock movers and today's must-own stock...
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About the Author
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.