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Dow Jones Industrial Average News, 5/24/2016: As concerns about China's economic growth and low oil prices abate among investors around the world, a new challenge has reared its head: The Brexit. Investors are growing more anxious that voters in the United Kingdom could shun the elites and turn against its membership in the European Union. In late June, after the U.S. Federal Reserve chimes in on benchmark interest rates, UK voters will decide whether they want to remain a part of the world's largest economic bloc.
Here's today's top stock market news, stocks to watch, ways to profit, and economic calendar for May 24, 2016.
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What's Moving the Dow Jones Industrial Average Today: Interest Rate Chatter
Futures for the Dow Jones Industrial Average today (Tuesday, May 24) were projecting a 26-point decline as investors anticipate the rising likelihood of an interest rate hike this summer. Global stocks slumped as traders around the globe continue to monitor statements by members of the Federal Reserve ahead of the central bank's upcoming meeting on monetary policy.
Yesterday, Philadelphia Federal Reserve Bank President Patrick Harker suggested the central bank could hike short-term interest rates up to three times this year if the economy continues to show signs of recovery. That sort of rate chatter has investors on edge as we approach the upcoming FOMC meeting on June 14.
The Chinese government isn't pleased with U.S. President Barack Obama. Yesterday, the Obama administration announced it was lifting a decades-long arms trade embargo with Vietnam that included the sale of arms and military craft to the Asian nation. As the president made the historic announcement, airline giant Boeing Co. (NYSE: BA) announced it would sell 100,737 MAX 200 jets to Vietnamese firm VietJet. How will this major announcement affect geopolitics in the South China Sea? Here's a breakdown of China's response to the president's announcement and what it means for the global markets in the months ahead.
On the economic front, keep an eye on the April new home sales report. Though data has shown some weakness in recent weeks, economists anticipate the housing sector will see some improvement. Shares of Toll Brothers Inc. (NYSE: TOL) are in focus as the home construction company reports quarterly earnings and reacts to last month's sales data.
WTI crude oil prices were sliding despite news U.S. domestic supplies experienced a draw at Cushing, Oklahoma, last week. WTI was off 0.5% after news that Iran doesn't plan to cut its production levels. That news comes ahead of a critical meeting among OPEC producers to discuss a potential freeze on output. Brent crude slipped 0.6% as traders grew more concerned about the possibility of a rise in production and an ensuing supply glut.
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
- It looks like a possible takeover of Tribune Publishing Co. (NYSE: TPUB) by rival Gannett Co. Inc. (NYSE: GCI) isn't going to happen. Tribune rejected a $15-per-share bid from GCO, and announced it received a $70.5 million investment from billionaire Patrick Soon-Shiong. The investment is widely expected to block any possible deal for the publisher of the Chicago Tribune and Los Angeles Times.
- Six upcoming IPOs are on deck this week, which will bring the May IPO total to 16 and make it the busiest month since October 2015. Leading the upcoming IPO calendar is the first $1 billion IPO of the year – U.S. Foods Holding Corp. (NYSE: USFD). Here's all you need to know about which IPOs to invest in this year, and the other five public offerings expected to generate significant interest all week long.
- In deal news, specialty finance company Ares Capital Corp. (Nasdaq: ARCC) agreed to buy smaller rival American Capital Ltd. (Nasdaq: ACAS) in a cash and stock deal valued at $3.4 billion, aiming to capture a bigger share of lending to mid-sized firms as big banks turn cautious.
- On the earnings front, look for reports from Best Buy Co. Inc. (NYSE: BBY), Intuit Inc. (Nasdaq: INTU), DSW Inc. (NYSE: DSW), and AutoZone Inc. (NYSE: AZO).
Today's U.S. Economic Calendar (all times EDT)
- Redbook at 8:55 a.m.
- New Home Sales at 10 a.m.
- Richmond Fed Manufacturing Index at 10 a.m.
- 4-Week Bill Auction at 11:30 a.m.
- 52-Week Bill Auction at 11:30 a.m.
- 2-Year Note Auction at 1 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.