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The Dow Jones Industrial Average today (Friday) finished up 35 points, and the S&P 500 experienced its first weekly loss since February. Investors remain cautious about the first-quarter ending earnings season, which kicks off "unofficially" with a report by Alcoa Inc. (NYSE: AA). And investors have a good reason to be concerned. In fact, our Capital Wave Strategist Shah Gilani says that what's happening right now is similar to what happened in 2008, and it seems like everyone's ignoring the warning signs.
Here's what you need to know about the markets on April 8, 2016.
First up, check out the results for the Dow Jones, S&P 500, and Nasdaq:
Dow Jones: 17,577.16; +35.20; 0.20%
S&P 500: 2,047.60; +5.69; 0.28%
Nasdaq: 4,850.69; +2.32; 0.05%
Now, here's the top stock market news today…
DJIA Today: Markets Rally on Back of Federal Reserve Optimism
WTI crude oil prices rallied more than 6% after the U.S. Federal Reserve's statements. Prices are also rising on hopes that global energy producers can soon reach an agreement to freeze production and offer support for prices. Money Morning Global Energy Strategist Dr. Kent Moors just released his latest oil price forecast after returning from Abu Dhabi, and this could be a very profitable time for investors.
On the economic front, new fears have emerged about the health of the U.S. economy. U.S. wholesale inventories slipped in February at their fastest rate in three years. The news raises new worries that economic growth was slower in the first quarter than previously expected. Wholesale inventory levels fell 0.5%, according to the U.S. Commerce Department.
But the big talk today was Fed Chair Janet Yellen, who said yesterday that the United States "isn't a bubble economy." The Dow pushed higher after Yellen spoke on a panel with former Fed chairs Ben Bernanke and Alan Greenspan. Both infamously missed the housing bubble by years and helped fuel it with low-interest-rate policy. New York Fed President William Dudley and Dallas Fed President Rob Kaplan both exercised caution on interest rates this morning.
Don't make this popular mistake: Wall Street has soured on automakers. But it's missing an incredible opportunity with this carmaker. This company's pre-emptive strategy could mean a 41% surge in its stock…
Now, let's look at the day's biggest stock movers and today's must-own stock…
Top Stock Market News Today
- It was another big day for Under Armour Inc. (NYSE: UA). The firm completed its 2-for-1 stock split, offering Class C shares to its current shareholders. Here's what's next for the Under Armour stock price in 2016.
- Shares of Gap Inc. (NYSE: GPS) plunged nearly 14% after the company announced that same-store sales slipped 6% in March. The company has raised concerns about gross margins in the first quarter, setting expectations lower for its next earnings report.
- A downgrade by MKM Partners battered shares of social media giant LinkedIn Corp. (Nasdaq: LNKD), pushing them down nearly 4%. The investment firm raised concerns that its job openings postings may have peaked for the year, dropping LinkedIn's price target to $130. The investment firm also downgraded shares of Ulta Salon, Cosmetics & Fragrance Inc. (Nasdaq: UTLA), which still saw its shares rise 3.8%.
- Shares of Yahoo Inc. (Nasdaq: YHOO) ticked up about 1.5% on news that Verizon Communications Inc. (NYSE: VZ) is considering a bid for the firm's core assets and possibly Yahoo Japan. AT&T Corp. (NYSE: ATT), Alphabet Inc. (Nasdaq: GOOGL), and Time Inc. (NYSE: TIME) are also considering possible bids. Here's more on the latest buyout rumors and how you can profit on Yahoo stock.
- Valeant Pharmaceuticals International Inc. (NYSE: VRX) fell 4% after activist investor and company board member Bill Ackman announced the firm will not sell Bausch and Lomb.
- Finally, here is your stock pick of the day. Today, this company just received an upgrade from investment firm Credit Suisse Group AG (NYSE ADR: CS) after it already has increased by 87% over the last two years, but this technology giant has plenty more upside to it. Our Defense & Tech Specialist Michael A. Robinson calls this stock a "must-have" play "because the profit potential is massive." He projects that its upside is more than 110% from today's level. You won't believe the target price…
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Negative Interest Rates Will Kill America's Free Market… Negative interest rates are the latest central bank "flavor of the month," and the fact that this disastrous policy hasn't worked in Europe – or anywhere – won't stop the Federal Reserve from taking NIRP for a spin in the United States. Now's your chance to gain immediate protection from the downside – and even position yourself to profit – when Team Yellen takes rates negative. Don't delay…
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.