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Dow Jones Industrial Average News, 5/9/2016 – A weekend surprise in Saudi Arabian energy policy and the ongoing containment of the wildfires in Canada pushed oil prices down, overshadowing a strong rally for biotech stocks on what was a relatively tame day for the markets. Traders are still digesting Friday's weak jobs report, but a stronger dollar pushed down gold prices and silver prices. Gold fell 2.2% on the day.
Here's what else you need to know about the markets on May 9, 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 Industrial Average, S&P 500, and Nasdaq:
Dow Jones: 17,705.91; -34.72; -0.20%
S&P 500: 2,058.69; 1.55; 0.08%
Nasdaq: 4,750.21; 14.05; 0.30%
Now, here's the top stock market news today…
DJIA Today: Biotech Stocks Rally on Allergan-Teva Pharmaceuticals Deal News
The U.S. Federal Reserve is back in focus again. Today, former Goldman Sachs Group Inc. (NYSE: GS) banker and current Minneapolis Federal Reserve Bank President Neel Kashkari said that he believes that interest rates and current monetary policy are "about right" for the nation. Kashkari expressed further support for Fed Chair Janet Yellen, who has taken a very patient approach with interest rates. Kashkari said that an interest rate hike in June is possible. According to CME FedWatch, the probability of a rate hike is roughly 9%. The markets indicate that there is a 54% chance of a rate hike in December.
It was a great day for healthcare stocks. The sector received a huge boost from Allergan Plc. (NYSE: AGN), which saw gains of 6% on the day. AGN stock received a boost from analysts who projected that the Dublin-based pharmaceutical giant and manufacturer of Botox could see its stock increase by as much as 90% in the year ahead. Shares also rallied on news that Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) plans to close its $40.5 billion purchase of Allergan's generic drug business next month. It was the best day for biotech stocks since April 21, as the iShares NASDAQ Biotechnology Index ETF (Nasdaq: IBB) gained 2.5%.
Next, the odds of a megadeal in the newspaper industry are falling on news that Tribune Publishing (Nasdaq: TPUB) has adopted a poison pill to stop an unsolicited takeover bid from Gannett Co. (NYSE: GCI). TPUB stock fell 6% on news that the firm is rejecting the $815 million deal and will enact a shareholder rights plan to prevent future offers. GCI stock was off 1.1% on the day.
Crude oil prices slumped after the world's most powerful man in the energy industry was fired by Saudi Arabian officials. Over the weekend, Saudi King Salman replaced Ali al-Naimi, the oil minister in charge of the country's energy policy since 1995. Khaled al-Falih, the chairman of the state-owned oil titan Saudi Aramco, was sworn in to take his place.
Brent crude prices slumped nearly 4%. Meanwhile, WTI crude oil fell nearly 3% as Canadian officials announced they are handling the wildfires in Alberta, Canada, that have shuttered roughly one-third of the province's oil sands production. Here's more on why oil prices are sliding, but more important – where they are heading in the coming months.
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, Tyson Foods Inc. (NYSE: TSN) added 1.5% after the meat and poultry producer topped expectations. The firm beat both top-line and bottom-line estimates and said it was pleased with its report in what was a challenging quarter for the industry.
- Shares of Walt Disney Co. (NYSE: DIS) pushed on news that its "Captain America: Civil War" was the top film in the box office over the weekend. The film grossed $181.8 million in North American ticket sales, making it the fifth-best opening weekend in cinema history. Disney reports earnings on Tuesday, May 10.
- Shares of Krispy Kreme Doughnuts (NYSE: KKD) rallied more than 24% after the company announced plans to sell itself to a private firm. Germany's JAB Holding Co. will purchase the firm for $1.35 billion as the private firm expands its breakfast and coffee empire.
- Shares of Lending Club Corp. (NYSE: LC) plunged more than 20% on news that the firm's Renaud Laplanche has stepped down. The resignation comes after an internal review by the board of directors determined that Laplanche violated the firm's lending practices.
- And McDonald's Corp. (NYSE: MCD) stock hit an all-time high as investors continued to cheer its all-day breakfast menu and the positive impact on sales. It's been quite a turnaround for MCD stock, which is up 10% since Jan. 1 and more than 35% in the last year. The firm is experimenting with new menu items across the United States. These options include garlic fries on the West Coast and a larger Big Mac in Texas.
- 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.