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Dow Jones Industrial Average News, 6/07/2016: When a ValueBridge analyst discovered that 93% of all market price moves since 2008 have been driven by U.S. Federal Reserve statements and policy, we weren't surprised.
That scenario is playing out again this morning as traders continue to look to the central bank for any indication of how the U.S. economy is functioning and what the policy reaction will be.
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It's pure madness, given that the Federal Reserve missed several opportunities to raise interest rates in the past.
The Fed also missed all of the warning signs for a financial crisis in 2008.
Here's today's top stock market news, stocks to watch, ways to profit, and economic calendar for June 7, 2016.
What's Moving the Dow Jones Industrial Average Today: Federal Reserve Interest Rate Chatter
Dow Jones futures projected a 30-point gain a day after positive sentiment from Federal Reserve Chair Janet Yellen.
Here's a breakdown of why the Dow is pushing higher this morning.
The Federal Reserve is back in focus again. Today, keep an eye out for an interview with Atlanta Federal Reserve Bank President Dennis Lockhart with Bloomberg this morning. Yesterday, Fed Chair Janet Yellen hinted that the central bank is poised to hike interest rates twice this year, despite May's lackluster jobs report. Although the U.S. unemployment rate slipped to 4.7%, the country created just 38,000 jobs last month. Several prominent economists have dismissed the report as an "anomaly;" however, investors don't anticipate a rate hike in June due to growing concerns over the Brexit vote. That puts the July FOMC meeting in focus.
The Brexit debate is heating up ahead of the June 23 vote. According to several polls, the support to stay and the support to leave the European Union among voters in the United Kingdom are separated by just a small amount.
On the deal front, Yahoo! Inc. (Nasdaq: YHOO) accepted one last round of bids for its core Internet business. The company has been linked to a number of different firms in recent weeks, including Twitter Inc. (NYSE: TWTR) and AT&T Inc. (NYSE: T). However, The Wall Street Journal reported this morning that Verizon Communications Inc. (NYSE: VZ) has upped its bid to $3 billion for its business. The global telecommunications giant is said to lack any interest in Yahoo's real estate holdings or other assets that include company patents. Private equity giant TPG also considered another bid ahead of the deadline.
On the political front, Hillary Clinton became the presumptive nominee by climbing over the delegate finish line. She remains under investigation in Washington regarding a private email server that violated Federal standards on how confidential and Top Secret information is stored and transmitted.
Crude oil prices have been pushing higher toward an eight-month high as supply disruptions continue to impede global production. Optimism is high in the sector, particularly in the fracking sector and the oil field services industry.
Shortages have been experienced in Canada, Libya, Venezuela, and Nigeria.
Before U.S. market open, WTI crude oil added more than 1.0%, while Brent crude pushed up another 1.1%.
Today's a critical day for one of the industry titans. This morning, Royal Dutch Shell Plc. (NYSE ADR: RDS.A) kicks off its Capital Markets day. The energy giant has been slashing capital expenditures in the wake of its $54 billion merger with BG Group. The company will spend $29 billion on capex this year, down roughly 20% from last year's figure. The firm also said it is aggressively ramping up its cost-savings program from $1 billion to a $4.5 billion target, selling $30 billion in assets by 2018. The firm will also leave up to 10 countries once the merger is complete. RDS.A stock is up 3.2% in pre-market hours.
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
- On the earnings front, shares of Valeant Pharmaceuticals International Inc. (NYSE: VRX) were off more than 16% on news that the Canadian pharmaceutical giant has slashed its earnings-per-share expectations for the quarter. The embattled company badly missed earnings expectations and continues to be a massive thorn in the side of activist hedge fund manager Bill Ackman, who has seen his stake's value erode over the last year.
- Shares of Best Buy Co. Inc. (NYSE: BBY) are in focus after falling by more than 5% on Monday. BBY stock slumped 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.
- Goldman Sachs Group Inc. (NYSE: GS) is back in the news for all the wrong reasons again. According to reports, U.S. regulators are looking into whether the global investment firm has broken federal law for failing to alert anyone over a suspicious financial transaction in Malaysia.
- Shares of FedEx Corp. (NYSE: FDX) were on the move this morning after the global shipping giant announced plans to boost its quarterly dividend. The firm will increase its dividend from $0.25 to $0.40, citing ongoing strength in the shipping industry.
- Look for additional earnings reports from VeriFone Systems Inc. (NYSE: PAY), Dave & Buster's Entertainment Inc. (Nasdaq: PLAY), Oxford Industries Inc. (NYSE: OXM), Verint Systems Inc. (Nasdaq: VRNT), Navistar International Corp. (NYSE: NAV), and Michaels Companies Inc. (NYSE: MIK).
Today's U.S. Economic Calendar (all times EDT)
- Productivity and Costs at 8:30 a.m.
- Gallup US ECI at 8:30 a.m.
- Redbook at 8:55 a.m.
- 4-Week Bill Auction at 11:30 a.m.
- 3-Year Note Auction at 1 p.m.
- Consumer Credit at 3 p.m.
- Treasury STRIPS at 3 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.