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Dow Jones Industrial Average News, 6/21/16 – The markets now anticipate that British voters will reject a proposal to depart the European Union, but can investors trust the polls? It was another day of Brexit speculation and chatter about the U.S. Federal Reserve. But far more happened than these two headline stories.
First up, check out the results for the Dow Jones, S&P 500, and Nasdaq:
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Dow Jones: 17,854.56, +49.69, +0.28%
S&P 500: 2,090.78, +7.53, +0.36%
Nasdaq: 4,847.68, +10.47, +0.22%
Now, here's the top stock market news today…
DJIA Today: Brexit Worries Subside, Energy Stocks Rally on Market Optimism
First up, Federal Reserve Chair Janet Yellen testified before the Senate Banking Committee and discussed the Federal Reserve's proposed timing for its next rate increase and concerns about the global economy. Yellen urged caution and patience given the uneven growth witnessed in the U.S. economy as of late. Meanwhile, she said that the Fed is not taking sides on the ongoing Brexit drama, but hinted that it could have serious economic consequences on this side of the Atlantic. Here's the best investment you can make based on what the Fed is set to do next.
George Soros – who famously broke the pound in 1992, sounded off this morning that the sterling could decline by 15% to 20% should Brexit succeed. But Soros isn't the only one offering a warning. Money Morning Capital Wave Specialist Shah Gilani foresees an even bigger event on the horizon should the British proceed with the Brexit. Read all about it, right here.
The potential exit of the United Kingdom has investors looking for a way to profit no matter what voters decide this week. The thing is, most pundits are looking at how to trade the Brexit the wrong way. America's #1 Trader Tom Gentile offers a simple way to trade the Brexit, and it's the best opportunity to generate alpha this week. Click here to learn about this trade.
Hedge fund manager Bill Ackman was back to his old tricks, targeting health marketing company Herbalife Ltd. (NYSE: HLF). A longtime short of Ackman's portfolio, the hedge fund manager released a video today that centered on the firm's recruiting and marketing practices, which he has accused of being "predatory."
Oil prices retreated after traders took profits off the table and await the upcoming decision of UK voters. WTI crude prices fell 1.7%, while Brent crude prices dipped 1.3%. Today's biggest winner among energy stocks was Energy Transfer Equity LP (NYSE: ETE), which saw its shares increase by more than 18%. The company is involved in a court case tied to its merger with Williams Companies Inc. (NYSE: WMB).
Now, let's look at the day's biggest stock movers and your trade of the day…
Top Stock Market News Today
- It was a big day for Facebook Inc. (Nasdaq: FB). Its Instagram division announced that it had topped 500 million users around the world. The bigger news: More than 80% of users of the Instagram platform are from outside of the United States, marking another sign of the social network's global domination. The news comes a day after the firm held its annual shareholder conference. During the event, shareholders approved a measure to keep controversial board member Peter Thiel in the fold. They also approved a measure that ensures that CEO Mark Zuckerberg will maintain control of the firm so long as he remains with the company.
- United Continental Holdings Inc. (NYSE: UAL) made headlines today with plans to implement a strategy to streamline operations and improve efficiency. The airline projects that it could produce an additional $3.1 billion in revenue.
- Companies reporting earnings today after the bell include FedEx Corp. (NYSE: FDX), Adobe Systems Inc. (Nasdaq: ADBE), and KB Home Corp. (NYSE: KBH). Check back to Money Morning for updates on these earnings and more.
- On the deal front, Tencent Holdings Ltd. (OTCMKTS: TCTZF) announced that it will purchase the majority stake of Finnish mobile game maker Supercell. The Chinese firm will buy the stake from SoftBank Group in a deal that could push Supercell's valuation above $9 billion. It's the latest sign of China's surging growth in social media and e-commerce. But if you really want to tap into the huge profits that are being fueled by China's significant growth, be sure to read about this company as well.
- Finally, here is your stock of the day. With the Brexit on tap, Money Morning Chief Investment Strategist Keith Fitz-Gerald – a seasoned market analyst with three decades of experience – recommends two ways you can make money from the vote on Thursday. Here's what you need to know.
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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.