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Dow Jones Industrial Average News, 6/30/2016: The markets were off to a slow start on Thursday, despite news that the S&P 500 has ticked back into positive territory for 2016.
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While concerns about the Brexit appear to have largely passed, investors would be fooling themselves to think that this massive macroeconomic event has passed without additional consequences.
Here's what you need to know about the Brexit right now and where the global markets head from here.
Here are today's top stock market news, stocks to watch, ways to profit, and economic calendar for June 30, 2016.
What's Moving the Dow Jones Industrial Average Today: Brexit Rally Cools
Dow Jones futures projected a six-point decline shortly after the United States reported weekly jobless claims. The country saw jobless claims hit 268,000 last week, just 1,000 more than economists had anticipated.
While investors are smiling about the fact that markets have rebounded at the end of June, they need to be cautious about the Dow Jones in the month of July. Here are three reasons why we could see a stock market crash in July.
Despite the strong recovery for European financial institutions this week, the International Monetary Fund has offered a dire warning about the health of the world's largest banking firm Deutsche Bank AG (USA) (NYSE: DB). The global agency says that the German bank is the single riskiest financial institution to the health of the international economic system. The announcement came not long after the U.S. Federal Reserve released its stress test results. The Fed also authorized stock buyback plans for 31 of 33 banks. The only two not to receive approval from the central bank: Banco Santander SA (NYSE ADR: SAN) and Deutsche Bank.
The IMF warning on DB stock is not surprising to readers of Money Morning Global Credit Strategist Michael Lewitt, who has been sounding the alarm over the company all year. Lewitt argues that Deutsche Bank is a big part of why the global financial system is more than $200 trillion in debt. The firm holds trillions of over-the-counter derivatives – the very weapons of economic financial destruction that sank the global economy in 2008. In other words, Deutsche Bank could singlehandedly trigger a global "Super Crash."
On the deal front, shares of Starz (Nasdaq: STRZA) were up more than 15% early this morning. The premium cable company is in talks to be acquired by Hollywood studio Lions Gate Entertainment Corp. (USA) (NYSE: LGF). Bloomberg reports that the deal could be $30 per share.
Crude oil prices were sliding as the crude supply outlook appeared higher than investors expected and global macroeconomic worries weighed on trader sentiment. WTI crude slipped 1.8% this morning, while Brent crude was off 1.4%.
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
- We're now two weeks away from the biggest summer shopping event of 2016. On July 12, Amazon.com Inc. (Nasdaq: AMZN) will host its second annual Prime Day, a one-day marketing blitz exclusively for its subscription holders. The company is following in the steps of Chinese e-commerce giant Alibaba Group Holding Ltd. (NYSE: BABA), which hosts its own annual shopping event called Single's Day. Last year, BABA saw its Single's Day sales climb to a staggering $14 billion in just 24 hours. So, which company is a better buy right now? The answer might surprise you.
- Alphabet Inc. (Nasdaq: GOOGL) shares are in focus on news that the firm has appointed former Federal Reserve Vice Chairman Roger Ferguson to its board. While Ferguson helps boost Alphabet's financial expertise, it is also an important moment in the history of the firm. Ferguson will be the first African American member of the board of directors.
- Shares of Morgan Stanley (NYSE: MS) were up marginally this morning despite news that the Federal Reserve has raised concerns about the security of the investment firm. The central bank is worried about some ways that Morgan Stanley identifies risks. The statement comes at the same time that MS authorized a $3.5 billion stock buyback plan.
- It was a tougher fourth quarter for Darden Restaurants Inc. (NYSE: DRI) than Wall Street had expected. Though it topped Q4 profit forecasts, the restaurant operator reported weak quarterly earnings and offered a lackluster outlook for its fiscal 2017. The firm said that it doesn't expect same-store growth to increase at all next year, despite its aggressive promotions. DRI shares were off 4.5% in pre-market hours.
- Companies also reporting earnings today include Micron Technology Inc. (Nasdaq: MU), Constellation Brands Inc. (NYSE: STZ), McCormick & Co. Inc. (NYSE: MKC), ConAgra Foods Inc. (NYSE: CAG), Paychex Inc. (Nasdaq: PAYX), and Lindsay Corp. (NYSE: LNN).
Today's U.S. Economic Calendar (all times EDT)
- Jobless Claims at 8:30 a.m.
- Chicago PMI at 9:45 a.m.
- Bloomberg Consumer Comfort Index at 9:45 a.m.
- EIA Natural Gas Report at 10:30 a.m.
- 3-Month Bill Announcement at 11 a.m.
- 6-Month Bill Announcement at 11 a.m.
- St. Louis Federal Reserve Chair James Bullard speaks at 2 p.m.
- Fed Balance Sheet at 4:30 p.m.
- Money Supply at 4:30 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.