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Dow Jones Industrial Average News, 5/25/16: The United States is bailing out Puerto Rico, and the International Monetary Fund is bailing out Greece. Seven years after the worst financial crisis of this young century, we've learned nothing.
But that's not all. Here's the rest of today's top stock market news, stocks to watch, ways to profit, and economic calendar for May 25, 2016.
What's Moving the Dow Jones Industrial Average Today: Greece Makes A Deal
Futures for the Dow Jones Industrial Average today (Wednesday, May 25) projected a 63-point rally on news the International Monetary Fund agreed to a "breakthrough" deal with Greece to address the beleaguered nation's ongoing debt challenges.
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In other market news, investors will be looking for an update on U.S. exports, while the latest FHFA report offers insight on price appreciation in the housing sector. Yesterday's strong report on new home sales offered a jolt for the economy and fueled greater expectations the U.S. Federal Reserve will raise interest rates in June or July.
Investors will also be watching speeches from a number of Federal Reserve members, including Philadelphia Fed Bank President Patrick Harker, Minneapolis Fed Bank Chief Neel Kashkari, and Dallas Fed Bank Chief Robert Kaplan.
On the deal front, there's another big shakeup at Hewlett Packard Enterprise Co. (NYSE: HPE). The firm said it will engage in a tax-free spin-off of its technology division and merge it with Computer Sciences Corp. (NYSE: CSC). The deal will move roughly two-thirds of HPE's workforce into the newly created firm. Shares of HPE stock were up nearly 10% in pre-market hours.
Meanwhile, Monsanto Co. (NYSE: MON) stock gained another 2.2% in pre-market hours after the firm rejected a $62 billion offer from German drug and chemical maker Bayer AG (OTCMKTS ADR: BAYRY). The global seed manufacturer said it will seek a higher price and continue negotiations on behalf of shareholders. Analysts expect that such a deal could receive regulatory approval.
WTI crude oil prices were pushing toward $50 per barrel as supply concerns abated around the globe. WTI gained 0.8%, while Brent crude pushed up 1.1%. Investors will be waiting for a key inventory report later this morning from the Energy Information Association (EIA) on crude stocks in the United States.
The big news in the energy sector this morning? Shares of Royal Dutch Shell Plc. (NYSE ADR: RDS.A) ticked up nearly 1% after the energy giant announced plans to cut 2,200 jobs to reduce costs in the face of lower oil prices.
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's another bad day for retail stocks. Shares of Tiffany & Co. (NYSE: TIF) slid more than 4% after the luxury retail firm reported its worst sales decline in six quarters. The firm missed Wall Street expectations largely due to a stronger dollar carving into revenue in outside markets. The company's pricing strategy in the United States has been to avoid promotions, while the strong dollar deters tourists from purchasing jewelry as well. The firm said its same-store sales for the quarter fell by 9%.
- Meanwhile, apparel retailer Express Inc. (NYSE: EXPR) cratered another 15% after the firm missed quarterly expectations.
- Apple Inc. (Nasdaq: AAPL) stock was pushing up another 0.6% on news the firm is creating a Siri-based assistant similar to the Amazon.com Inc. (Nasdaq: AMZN) assistant known as Echo. The information reports the firm is also going to develop a kit for programmers and developers to create applications for the digital assistant. The stock is up nearly 10% since Berkshire Hathaway Inc. (NYSE: BRK.A) announced a massive stake in the technology giant.
- Another firm is cutting costs. This time, it's Microsoft Corp. (Nasdaq: MSFT), which said it plans to let go of 1,850 workers. The decision is part of a broader plan to register a $950 million restructuring charge from its 2014 Nokia purchase.
- On the earnings front, look for reports from HP Inc. (NYSE: HPQ), Costco Wholesale Corp. (Nasdaq: COST), NetApp Inc. (Nasdaq: NTAP), Williams-Sonoma Inc. (NYSE: WSM), Lions Gate Entertainment Corp. (NYSE: LGF), Guess? Inc. (NYSE: GES), and Bank of Montreal (NYSE: BMO).
Today's U.S. Economic Calendar (all times EDT)
- MBA Mortgage Applications at 7 a.m.
- International Trade in Goods at 8:30 a.m.
- FHFA House Price Index at 9 a.m.
- PMI Services Flash at 9:45 a.m.
- EIA Petroleum Status Report at 10:30 a.m.
- Dallas Federal Reserve Bank President Robert Kaplan speaks at 1 p.m.
- 2-Year FRN Note Auction at 1 p.m.
- 5-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.