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The Dow Jones Industrial Average today was flat as financial stocks continued to slide over falling expectations of a summer rate hike by the U.S. Federal Reserve.
Markets fell despite positive news in the jobs sector. Last week, the number of Americans seeking unemployment benefits were lower than economists had expected. Roughly 264,000 Americans sought benefits, besting expectations by 6,000.
While the jobs figure and financial fallout dominated the headlines, markets were in flux due to a number of other stories that slipped under the radar. From deal news to rising concerns about oil prices, here's what you need to know about the markets on June 9, 2016.
First up, check out the results for the Dow Jones, S&P 500, and Nasdaq:
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Dow Jones: 17,985.60; -19.45; -0.11%
S&P 500: 2,115.49; -3.63; -0.17%
Nasdaq: 4,958.62; -16.03; -0.32%
Now, here's the top stock market news today…
DJIA Today: Financial Stocks Slump as Federal Reserve Rate Hike Odds Fall
First up, the ongoing slide to the dollar has hit the financial sector hard over the last week. Shares of Goldman Sachs Group Inc. (NYSE: GS) and Wells Fargo Co. (NYSE: WFC) both fell more than 1.2%. Investors are weighing the Federal Reserve's next move, but it's growing increasingly clear that the central bank has no concept of how it can "normalize" interest rates and not tank markets. Money Morning Capital Wave Strategist Shah Gilani weighs in on the central bank's next move and what you need to do to prepare yourself.
Concerns about the Brexit had gold prices and silver prices ticking higher on Thursday. Gold prices added 0.8% today, while silver prices surged another 1.6%. Silver is now up 23% so far in 2016, fueled by a combination of geopolitical tensions and the falling dollar. The Federal Reserve's declining likelihood of an interest rate hike has weakened the dollar in recent weeks. So where will silver prices go next? Here's our latest forecast for silver prices in 2016.
In deal news, Reuters reports that unnamed sources have topped Verizon Communications Inc.'s (NYSE: VZ) $3.5 billion offer for the core Internet business Yahoo! Inc. (Nasdaq: YHOO). Reports from multiple sources indicate that several offers have risen higher than $5 billion. Suitors in recent weeks have included AT&T Inc. (NYSE: T), Berkshire Hathaway Inc. (NYSE: BRKA), and private equity giant TPG Capital.
Shares at Alphabet Inc. (Nasdaq: GOOGL) slipped despite news that the technology giant is exploring ways to beam high-speed Internet directly to consumer and business locations. The firm says that using this technology will be cheaper than building cable infrastructure. This is all part of the radical technological changes in the world and another sign of the immense wealth that this company will continue to produce in the future. Money Morning Director of Tech & Venture Capital Michael A. Robinson challenges anyone who thinks that the markets are experiencing a technology bubble to live without the radical changes that we've experience in just the last decade alone. Want to profit? Start investing in technology, right away.
Crude oil prices were off as investors took more profits off the table. WTI crude slipped 1.2%, while Brent crude dropped another 1.1%. Prices continued to decline despite concerns over recent attacks to the energy infrastructure of Nigeria. Analysts anticipate that oil prices will face pressures in the weeks ahead as Canada brings its supplies back online after disastrous wildfires ravaged the region surrounding the nation's oil sands production.
Now, let's look at the day's biggest stock movers and the must-own commodity of today…
Top Stock Market News Today
- Shares of Chesapeake Energy Corp. (NYSE: CHK) were off another 5% after the firm received a downgrade from RBC. The company's outlandish debt levels continue to weigh down the energy giant despite the recent rise in oil and natural gas prices. While oil prices continue to rise, however, investors should continue to listen to Dr. Kent Moors' insight about the upcoming wave of bankruptcies across the sector.
- Shares of LinkedIn Corp. (Nasdaq: LNKD) pushed up 2% after the stock received an upgrade from RBC Capital. The investment firm hiked its price target to $160 per share on expectations that it can top its competitors in the recruiting sector.
- It was another bad day for retail. Shares of Restoration Hardware Holdings Inc. (NYSE: RH) cratered roughly 20% after the company fell well short of earnings expectations. The company said it expected its profits to decline by as much as 40% due to problems in its supply chain.
- It's been a wild ride this year for LendingClub Corp. (NYSE: LC). CEO Renaud Laplanche is working to take the company private. Since the peer-to-peer (P2P) lending giant's high-profile IPO in late 2014, the stock is off more than 80%. The thing is – as Money Morning Capital Wave Strategist Shah Gilani warned last year – the P2P industry is very dangerous. Taking this company private isn't going to solve the much bigger problems in the industry.
- Another big healthcare merger is on the horizon. Shares of Envision Healthcare Holdings Inc. (NYSE: EVHC) pushed up nearly 8% on news of a pending deal with AmSurg Corp. (Nasdaq: AMSG). These are the two largest companies in the United States in field physician and healthcare services. The expected value of the deal, according to The Wall Street Journal, is roughly $9 billion. Shares of AMSG fell slightly on news of the deal.
- Finally, here is your stock of the day. 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. Shah Gilani offers a new way for investors everywhere to bring in lots of cold, hard capital on the market's rapidly evolving jitters over the UK's future in Europe… Check it out, right here.
Watch These Five Companies in 2016… There was a huge absence of IPO activity last year. In fact, only 170 companies went public in 2015 – down from 275 the year before. But 2016 is about to change all that as some of the biggest companies in the world prepare to hit the market. Here are the five we're keeping an eye on…
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.