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Dow Jones Industrial Average News, 5/5/2016: Why'd we even go to work today? The markets were flat and investors were tepid as they awaited Friday's release of the April unemployment report. Even though the unemployment rate is widely expected to stay at 5%, today's release of domestic jobless claims heightened concerns about the job market and economic growth.
Here's what else you need to know about the markets on May 5, 2016.
We're Seeking Maximum Profit from These "IPO Icebreakers" – 2016 has been a rough year for IPO investors, but that's about to change in the most lucrative way possible. Here's what you need to know to get ready for the turnaround.
First up, check out the results for the Dow Jones, S&P 500, and Nasdaq:
Dow Jones: 17,660.71; +9.45; 0.05%
S&P 500: 2,050.63; -0.49; -0.02%
Nasdaq: 4,717.09; -8.54; -0.18%
Now, here's the top stock market news today…
DJIA Today: Investors Sitting on Their Hands Ahead of April Jobs Report
The annual Sohn Conference in New York wrapped up on Wednesday and gave hedge fund managers a chance to share their ideas for the year ahead. Despite chatter about the "2 and 20" structure of hedge funds and the high levels of firms' fees, some ideas did move the markets today. Shares of Caterpillar Inc. (NYSE: CAT) slipped 1.8% after hedge fund manager David Einhorn said he was shorting the industrial giant and doesn't expect the company's stock to bottom out until 2018. Einhorn's positive statements about General Motors Co. (NYSE: GM) weren't enough to push the stock up today.
Meanwhile, Stanley Druckenmiller of the hedge fund Duquesne Capital announced that "the bull market has exhausted itself." Druckenmiller said that the U.S. Federal Reserve's "radical monetary experiment" is failing and that "the chickens are now coming home to roost." Druckenmiller argued that investors should purchase gold as an investment. Gold prices added 0.3% on the day.
WTI crude oil prices ticked higher as new threats to supply spurred gains in the sector. A massive wildfire that has caused $1 billion in damage in the oil-rich Canadian province of Alberta has caused firms to shutter oil sands production, while new geopolitical problems in Libya threaten the African nation's already struggling output. WTI crude prices rallied 4.1%, while Brent crude gained 3.4%. Here's more on why crude oil prices are on the rise today.
On the economic front, more Americans filed for unemployment benefits than economists anticipated last week, renewing concerns about the stability of the U.S. job market. The Challenger, Gray & Christmas report indicated that domestic companies planned a 35% surge in job cuts in April compared to the previous month. The report indicates that the bulk of the job cuts are coming in the energy sector, where declining oil prices have dramatically reduced production across the country.
But the big news today came from St. Louis Fed President James Bullard. The FOMC member said that he doesn't foresee headwinds from the possibility of the United Kingdom's exit from the European Union. Bullard said that a possible "Brexit" offers little risk because there would be many negotiations before it could be brought to completion.
Now, let's look at the day's biggest stock movers and the must-own stock for today…
Top Stock Market News Today
- On the earnings front, shares of Tesla Motors Inc. (Nasdaq: TSLA) slipped 5% after the automaker beat its Q1 2016 earnings expectations. Despite the beat, retail investors are walking away from the stock after hedge fund manager James Chanos said yesterday that he is shorting Tesla stock over concerns regarding the firm's profitability. Here's what you need to know about Tesla stock, right now.
- Shares of Fitbit Inc. (NYSE: FIT) cratered more than 18% after the firm reported weak quarterly expectations. The wearable fitness device giant announced a profit forecast that also underwhelmed investor expectations. Here's what investors need to know about Fitbit's falling share price.
- Shares of Alibaba Group Holding Ltd. (NYSE: BABA) rallied 4.6% in pre-market hours after the Chinese e-commerce giant crushed Wall Street quarterly revenue expectations as more consumers made purchases online. The firm announced that fourth-quarter revenue increased by 39%. The dramatic increase spurred optimism among analysts that Chinese consumers are still spending despite broader concerns about the world's second-largest economy.
- Shares of Weight Watchers International Inc. (NYSE: WTW) gained nearly 3% after the company reported a boost in subscribers for the first time in two years.
- Finally, here is your stock pick of the day. It's no secret that media companies are worried about cord-cutting these days. The cost of cable continues to surge with more Americans forced to buy more channels that they don't need for cable packages they can't afford. But Americans are walking away from triple-digit cable packages. In fact, Money Morning experts believe there are two related catalysts that will drive this stock higher.
The 5 Most Important 2016 IPOs to Watch: There was a shocking absence of IPO activity in 2015. But we'd like to see these five companies go public in 2016. If they do they'll be the most exciting and promising deals of the year…
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.