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Dow Jones Industrial Average News 5/11/2016: After Tuesday's sharp 222-point surge, traders are hoping that the markets can continue their momentum.
The Dow had its best one-day performance in roughly two months. So, can the magic continue?
Given weakness in Asian markets this morning, it appears the Dow is set for a long day. The Hong Kong stock markets was off nearly 1% as the Japanese yen weakened and oil slumped.
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Here's today's top stock market news, stocks to watch, ways to profit and economic calendar for May 11, 2016.
What's Moving the Dow Jones Industrial Average Today: Asian Stocks
Dow Jones futures indicated a 41-point decline in premarket hours as investors reignite concerns about China's economy.
Here's a breakdown of why the Dow is pushing lower this morning.
- First up, it's good to be com Inc. (Nasdaq: AMZN) CEO Jeff Bezos. The technology tycoon saw his net worth surge by another $1 billion on Tuesday after shares of AMZN stock hit a new record high. Shares topped $700 each after investment research firm Bernstein raised its price target to $1,000 per share. In addition, the firm announced plans to launch its own user-driven video upload service, putting it in more-direct competition with YouTube.
- Investors are wondering what GOP frontrunner Donald Trump is going to say next. This week, the real-estate mogul said that he would consider striking a deal with U.S. creditors and holders of Treasuries. That is unprecedented… and it's also concerning as the world's largest holders of U.S. debt are individuals with 401-k plans across the country. One thing is certain: Every political pundit seems to have underestimated Trump's rise. Here's more on how Trump fooled everyone.
- Speaking of politics, Trump won the West Virginia Republican primary on Tuesday, in addition to taking Nebraska unopposed. Meanwhile, Senator Bernie Sanders (D-VT) topped Hillary Clinton in West Virginia's primary election. Though Clinton is widely expected to be the nominee, Sanders continues to garner support from the Democratic base.
- The online lending industry continues to face increased calls for greater transparency and new regulatory oversight. The U.S. Treasury Department issued a report on Tuesday that raised concerns about consumer protection laws and the business practices as one of its leading firms – Lending Club Corp. (NYSE: LC) – becomes embroiled in a financial scandal. Of course, our Capital Wave Strategist raised concerns about this industry back in 2015, when Shah warned investors to keep their money away from these networks. Shares of Lending Club were off another 11% on Tuesday, and shares are now down nearly 80% from their 52-week high. Buyer beware.
- WTI crude oil prices were sliding marginally after yesterday's wild session. Wildfires in Canada and a series of attacks on infrastructure in Nigeria offset concerns about rising domestic supplies in the United States. Keep an eye out today for an important update on crude inventory levels from the Energy Infrastructure Administration. WTI crude was off 0.4%, while Brent crude was off just a little less.
Now here's your list of top stocks to watch in today's market, plus today's economic calendar:
Companies to Watch in the Stock Market Today
- Welcome to the club, Alaska Air Group Inc. (NYSE: ALK). Shares of the nation's seventh-largest airline were pushing higher today after officials confirmed that the firm will join the S&P 500 Index. Alaska Air will replace semiconductor giant SanDisk Corp. (Nasdaq: SNDK), which is being purchased by rival Western Digital Corp. (Nasdaq: WDC).
- Next, shares of The Walt Disney Company (NYSE: DIS) fell more than 4.5% after the company fell short of earnings expectations after the bell on Tuesday. The quarterly earnings decline – the first for the company in five years — was a surprise due to the massive profits the firm earned from its blockbuster films Star Wars: The Force Awakens and Zootopia. The company also cited a decline in subscribers to its sports network ESPN as cord-cutting becomes an increasing trend among Americans. The Disney also said it plans to shutter its Infinity video-gaming line, and lay off roughly 300 employees.
- Some people are making jokes… others are waving American flags… but one thing is certain: Anheuser Busch Inbev SA (ADR) (NYSE: BUD) has hit a marketing home run. Brand awareness is being raised by replacing the name Budweiser on its cans with one word: "America." The company will continue to keep the new name on its packages until the 2016 election and will be quite a topic of conversation due to the firm's advertising efforts during the Summer Olympics.
- On the earnings front, look for additional reports from com International Ltd. (ADR) (Nasdaq: CTRP), Macy's Inc. (NYSE: M), and Sina Corp. (Nasdaq: CINA), Wendy's Co. (NYSE: WEN), and Toyota Motor Corp (ADR) (NYSE: TM).
Today's U.S. Economic Calendar (all times EST)
- MBA Mortgage Applications at 7 a.m.
- EIA Petroleum Status Report at 10:30 a.m.
- 10-Year Note Auction at 1 p.m.
- Treasury Budget at 2 p.m.
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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.