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Dow Jones Industrial Average Today Up Despite Lackluster GDP Number

By , Executive Producer, Money Morning

Garrett Baldwin

Dow Jones Industrial Average News, 5/27/16: All eyes are on Federal Reserve Chair Janet Yellen this morning. The Federal Reserve Chair and the nation's top monetary policy expert will be speaking at the Harvard Club later this afternoon.

But that's not all. Here's today's top stock market news, stocks to watch, ways to profit and economic calendar for May 26, 2016.

What's Moving the Dow Jones Industrial Average Today: Fed Chair Janet Yellen

Dow Jones Industrial Average futures were flat this morning as investors await a speech from Federal Reserve Chair Janet Yellen. The futures projected a 17-point gain at the opening bell.

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Here's a breakdown of why the Dow fell flat this morning.

First up, investors are weighing the second revision of U.S. first-quarter GDP. Last month, the U.S. Commerce Department reported a dismal growth figure of 0.5%, raising concerns about the health of the domestic manufacturing sector. This month, the number was revised upward to 0.8%. Despite lackluster growth, economists are projecting a strong pace for the second quarter, buoyed by tightening labor conditions, rising wages, and improving home sales.

Meanwhile, the most boring debate from the seven-year tenure of the Obama administration is back in focus. Republican front-runner Donald Trump said that he would reverse regulatory decisions and approve the Keystone XL Pipeline if he becomes president. Trump said that energy dominance would be central to his administration's economic and foreign policy efforts.

As we have explained here on numerous occasions, the idea is completely irrelevant. The pipeline will not reduce crude oil prices in the United States and the environmental impact of the project is negligible. This means that both the pro and against arguments regarding the pipeline have been flawed from the beginning. That being said, shares of TransCanada Corp. (USA) (NYSE: TRP), are in focus today.

Crude oil prices retreated below $50 per barrel, easing from a seven month high. Crude prices have been rallying in recent weeks as supply concerns abate and investors continue to enjoy the price rally in the global commodity sector. WTI crude fell 0.7%, while Brent crude dipped 1.1% in early trading. Crossing the psychological barrier of $50 per barrel could drive U.S. producers in the shale industry to return to operations after months of being shut down. Meanwhile, a possible deal among OPEC producers to provide a floor to prices remains in jeopardy due to Iran's unwillingness to participate.

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

Today's U.S. Economic Calendar (all times EST)

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About the Author

Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.

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