Monday, once again, was the Janet Yellen Show.
The financial media and floor traders speculated all morning until the U.S. Federal Reserve chair spoke in Philadelphia and offered some insight into Friday's dismal May unemployment report.
The Dow Jones Industrial Average gained more than 110 points as traders largely do not anticipate that the central bank will hike interest rates this summer, even as the central bankers continue to call the weak jobs report an "anomaly." That theory will be tested during the first week of July, and all eyes will be on Thursday's report on unemployment rolls around the nation.
Here's what you need to know about the markets on June 6, 2016.
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First up, check out the results for the Dow Jones, S&P 500, and Nasdaq:
Dow Jones: 17,920.33, +113.27, +0.64%
S&P 500: 2,109.41, +10.28, +0.49%
Nasdaq: 4,968.71, +26.20, +0.53%
Now, here's the top stock market news today...
DJIA Today: Oil Prices Rally, Yellen Hints More Rate Hikes Ahead
The Federal Reserve is certain that the weak May employment report is a statistical anomaly, and that the U.S. economy is strong enough for another interest rate hike in the near future. Before Yellen spoke in the afternoon, that same sentiment was shared by Boston Federal Reserve Bank President Eric Rosengren, who said earlier this morning while in Finland that the central bank is moving closer to tightening monetary policy. That said, that possibility is fleeting in June given rising concerns about the Brexit.
Yellen signaled in a speech today that despite the May report, a case can be made for two interest rate hikes later this year.
It was a big day for crude oil prices, although gains were pared shortly after Janet Yellen's press conference. WTI crude gained roughly 2.2%, while Brent crude pushed up 1.8%. The global market is still facing crude supply problems due to shortages in Canada, Libya, Venezuela and Nigeria. In Nigeria, militants have been attacking the energy infrastructure with promises to bring the nation's total output down to zero. The country's production is now down a half-million barrels per day since its peak.
Shares of Chevron Corp. (NYSE: CVX) and Exxon Mobil Corp. (NYSE: XOM) both were in the green today thanks to the rise in oil prices.
Finally, Democratic front-runner Hillary Clinton expects to secure her party's nomination this week as the summer campaign season hits full swing. Sen. Bernie Sanders (D-VT) is still competing against her in six states, but the math is not on his side.
Now, let's look at the day's biggest stock movers and the must-own commodity for today...
Top Stock Market News Today
- The ongoing recovery in the energy sector has helped establish a new bull market for an unusual commodity: sand. Shares of Fairmount Santrol Holdings Inc. (NYSE: FMSA) rallied more than 14%, while Hi-Crush Partners LP (NYSE: HCLP) saw shares increase by more than 9.5%. The sand suppliers received upgrades from analysts as rising oil prices are expected to boost fracking, a process that requires significant amounts of the commodity.
- The rise in oil prices is also offering a significant boost to oil field services stocks. Shares of Halliburton Co. (NYSE: HAL) and Schlumberger Ltd. (NYSE: SLB) both saw shares rise by more than 4%. The sector has seen a wealth of upgrades in recent weeks thanks to increasing optimism over the global oil recovery.
- Insider Alert: Shares of Best Buy Co. Inc. (NYSE: BBY) cratered by 5% on news that the firm's CEO has slashed his own stake in BBY stock. According to an SEC filing, Joly reduced his stake in the firm by roughly 44%. The company recently issued a bleak quarterly profit outlook and continues to see its profits erode due to rising competition.
- It was a big day for Whole Foods Market Inc. (NYSE: WFM), which saw its stock surge more than 3.1%. The rally came after investment periodical Barron's projected 20% upside for the company's stock.
- Americans may be buying big ticket items - but Goldman Sachs Group Inc. (NYSE: GS) warns that it's going to be a difficult time for the motorcycle industry. Shares of Harley-Davidson Inc. (NYSE: HOG) fell more than 2.4% after the investment firm downgraded HOG stock. Goldman is worried about a recent sales downturn and slashed its price target for HOG stock to $50.
- Shares of Wal-Mart Stores Inc. (NYSE: WMT) were pushing up 0.4% after investment firm Jeffries issued a "Buy" rating on the retailer's stock. The firm boosted its price target from $60 to $82 after the retail giant was recently boosted by strong first-quarter earnings. The company is also working with Uber and Lyft to create a grocery delivery service that could help boost its sales. The company will announce the pilot program at its annual shareholder meeting and plans to start the service in Denver and an undisclosed market later this month.
- Finally, here is your stock of the day, and there's a bonus. Recently, we profiled some of the best tech stocks to buy for 2016 that will gain from the massive growth in the Internet of Things market. But today, we're on the hunt for bargains from one of the most lucrative sectors of the markets. Money Morning Director of Tech &Venture Capital Michael A. Robinson has not one, but three best-in-class tech stocks poised for tremendous gains in the next few years.
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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.