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It was another rough day for the Dow Jones Industrial Average as geopolitical concerns about Europe's economy and domestic worries about terrorism dominated headlines.
The flight to safety accelerated today with the Japanese yen hitting a three-year high against the euro, while major European markets slumped sharply on the day. And although these were the headlines that dominated the day, the major media outlets missed one critical takeaway for their audience: how to profit.
Here's what you need to know about the markets on June 14, 2016, and how you can profit from the ongoing jitters felt from the Brexit.
Readers - don't miss details on this bonus stock pick... the best "retirement stock" of 2016...
First up, check out the results for the Dow Jones, S&P 500, and Nasdaq:
Dow Jones: 17,674.82; -57.66; -0.33%
S&P 500: 2,075.32; -3.74; -0.18%
Nasdaq: 4,843.55; -4.89; -0.10%
Now, here's the top stock market news today...
DJIA Today: Markets Don't Expect Rate Hike, Financials Stocks Hammered
German bonds have fallen below 0% for the first time in history, an unnerving sign for the European economy as the Brexit vote approaches.
Financial stocks took another punch today as no one anticipates that the U.S. Federal Reserve will raise interest rates during its monetary policy meeting that started today. Fed Chair Janet Yellen said last week that the ongoing drama surrounding the United Kingdom's potential departure from the European Union is weighing on the sentiment of central bankers. Here's what investors must know about the Brexit that the mainstream media is missing.
Market expectations for a rate hike have plunged in recent weeks. According to CME FedWatch, the probability of a rate hike in July is roughly 18%, while the probability in September sits at 29%. Investors are now fearing that if the Fed takes any action at all this year, we could see a stock market crash.
Wells Fargo Co. (NYSE: WFC) and JPMorgan Chase & Co. (NYSE: JPM) were both off more than 1.8% on the day. Meanwhile, Capital One Financial Corp. (NYSE: COF) fell more than 6.1%, pushing into oversold territory.
While gold prices and silver prices have seen strong gains in recent months, there's another commodity that we've rallied behind that continues to see remarkable gains. Bitcoin prices hit a two-year high yesterday thanks to a change in the coding that is expected to impact supply and rising demand from Chinese investors. Bitcoin prices are expected to see even more gains thanks to these factors in the months ahead.
Oil prices again slipped today as investors grow more concerned about the Brexit.
WTI crude prices fell 1.2%, while Brent crude prices slipped 1.5%.
But the biggest company news today came from Microsoft Corp. (Nasdaq: MSFT), which again stole headlines for the second straight day. After yesterday's announcement that it will purchase LinkedIn Corp. (Nasdaq: LNKD) for $26.2 billion, the technology giant unveiled its two newest gaming consoles - codenamed Xbox One S and Xbox One Project Scorpio. Shares of MSFT fell 0.7%.
Now, let's look at the day's biggest stock movers and the must-own stock today...
Top Stock Market News Today
- We were right again. Shares of Chipotle Mexican Grill Inc. (NYSE: CMG) cratered on Tuesday after the firm received another downgrade to its stock. Today, Deutsche Bank AG (NYSE: DB) cut its price target on the stock and said that last year's E Coli. outbreak has caused permanent damage to the firm's brand. The stock is now at a three-year low, and it will likely get worse for the embattled dining chain.
- There are many reasons why investors should be bullish about Alibaba Group Holding Ltd. (NYSE: BABA). In fact, we've been behind this company since it was at a rock-bottom bargain price of $57 per share. Today, the stock is up 3.2% on news that the firm foresees a 48% increase in revenue.
- 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. Money Morning Capital Wave Strategist 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.
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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.