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The Dow Jones Industrial Average pushed higher Wednesday, bolstered by strong Chinese trade data and a surprise earnings report from investment bank JPMorgan Chase & Co. (NYSE: JPM). The Dow rallied 187 points as stocks brushed aside concerns about China, monetary policy, and oil volatility.
Here's what else you need to know about the markets on April 13, 2016.
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…
First up, check out the results for the Dow Jones, S&P 500, and Nasdaq:
Dow Jones: 17,908.28; +187.03; +1.06%
S&P 500: 2,082.42; +20.70; +1.00%
Nasdaq: 4,947.42; 75.33; +1.55%
Now, here's the top stock market news today…
DJIA Today: Financial Stocks Rally on Earnings Report Optimism
U.S. banks are struggling with emergency plans to address their statuses as "Too Big to Fail." The U.S. Federal Reserve and the FDIC are demanding that five domestic banks revisit their "living wills" by Oct. 1 or they could face regulatory sanctions, higher capital requirements, or growth restrictions. These living wills help banks brace a potential bankruptcy and prevent a need for a taxpayer bailout.
The five banks are J.P. Morgan Chase & Co., Wells Fargo & Co. (NYSE: WFC), Bank of America Corp. (NYSE: BAC), Bank of New York Mellon Corp. (NYSE: BK), and State Street Corp. NYSE: STT). The only bank to pass the standards of both agencies was Citigroup Inc. (NYSE: C).
Despite the news, financial stocks rallied Wednesday on optimism about banking earnings reports. The SPDR S&P Bank ETF (NYSE: KBE) rallied more than 2%.
WTI crude oil prices slipped after Saudi Arabia's oil minister announced that production cuts were out of the question at a meeting in Doha, Qatar. Meanwhile, OPEC slashed its forecast for global oil demand growth in 2016.
On the economic front, U.S. retail sales fell in March by 0.3%, raising new concerns about the economic growth in the first quarter. The news came the same day that the federal government also announced weaker than expected inventory levels. The weak retail figure today is just another reason why the Federal Reserve is likely to be cautious with interest rates this spring.
Meanwhile, the U.S. inventories fell marginally in February as automobile stocks rose, but persistently weak sales suggested businesses may hesitate to reduce a glut of unsold merchandise.
Now, let's look at the day's biggest stock movers and today's must-own stock…
Top Stock Market News Today
- Shares of Netflix Inc. (Nasdaq: NFLX) were up nearly 2.5% despite news that the company could see a decline in customers due to its newly announced price increases. According to investment research firm Nomura, the firm will lose roughly 450,000 customers when it boosts its prices on grandfathered consumers by $2.00.
- It was a brutal day for the coal industry. Peabody Energy Corp. (NYSE: BTU), the largest privately owned coal producer in the world, announced plans to file for bankruptcy protection. The company cited sharp declines in the price of coal and its inability to finance its expansion into Australia. The firm said that its mines will stay in operation during bankruptcy proceedings. The firm's primary competitor, Arch Coal (OTCMKTS: ACIIQ), filed for bankruptcy earlier this year.
- Shares of Yahoo Inc. (Nasdaq: YHOO) pushed higher after the company received an upgrade from SunTrust Banks Inc. (NYSE: STI). YHOO stock gained 1.5% as the company awaits an April 18 deadline for potential suitors for its core Internet business and other key assets. Potential suitors include the Daily Mail, Verizon Communications Inc. (NYSE: VZ), Microsoft Corp. (Nasdaq: MSFT), AT&T Corp. (NYSE: T), and a wealth of private equity firms.
- Speaking of Verizon, the firm is under pressure on news that up to 40,000 unionized employees will strike over a contract dispute. This is one of the largest labor strikes in years after a critical deadline passed at midnight on Tuesday.
- Shares of KB Home (NYSE: KBH) rallied more than 2.9%, while other housing stocks also rallied on positive news for the industry. This morning, the Mortgage Bankers Association announced that U.S. mortgage applications increased by 10% last week.
- On the earnings front, JPMorgan Chase & Co. saw shares rally 4.6% after the company beat Wall Street's underwhelming top- and bottom-line earnings expectations. Despite the gains, Wall Street banks are hurting this quarter. The firm said that its investment banking revenue fell by nearly 25% on the quarter.
- Finally, 3D printing suffers from some of the same "growing pains" as any young technology. But brushing off the entire sector is foolishness. For one thing, 3D printing is on pace to become a $1 trillion sector able to disrupt everything from your neighborhood jewelry artisan to the world's biggest vehicle manufacturers. And our stock pick of the day is poised to take advantage and profit from this massive technological revolution. Read all about it right here, and learn how you can capture an easy 77% gain.
The Shocking Forecast for Oil Prices in 2016: Crude oil prices plunged in 2015, but our forecast points to a turnaround this year that will send the price of oil higher. Don't miss our full-year target and the key developments that will move oil prices in 2016. Read more…
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.