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Dow Jones Industrial Average News, 7/01/2016: The markets remain resilient in the wake of the British vote to depart the European Union.
Investors anticipate that a shot of stimulus will be the cure to prevent economic calamity in the global markets. However, we've seen this before, and the result has been a world taken to the brink by central banks.
Wall Street's Next Wipeout – Will You Be Ready? A Wall Street analyst reveals a little-known "crash insurance" strategy that could "insure" your assets – up to $1 million or more – with the potential to keep you fully covered before the Brexit sends the unprotected to the poorhouse. Read more…
Investors need to exercise caution and avoid falling into the trap laid out by faulty headlines. Let's get started. We want to identify buying opportunities, reduce risk, and present ways for you to protect your nest egg.
Here are today's top stock market news, stocks to watch, ways to profit, and economic calendar for July 1, 2016.
What's Moving the Dow Jones Industrial Average Today: Brexit Rally Cools
Dow Jones futures projected a 13-point gain as the Brexit rally in the United States appears to be cooling. Heading into this long weekend, investors are eyeing a busy day of economic data. They're also trying to make sense of news that the 30-year U.S. bond yield has struck a new record low thanks to a global rally in the bond markets.
Despite the strong rally, investors must be wary about the state of the European economy. Chief among these concerns is England, which markets expect will receive a boost of stimulus. On Thursday, Bank of England Governor Mark Carney said he expects a downturn in economic growth if the nation's departure from the EU is finalized.
"Does anyone in the country think that these risks have not begun to manifest?" Carney said on Thursday. "In my view … the economic outlook has deteriorated and some monetary policy easing will likely be required over the summer."
Interest rates in the United Kingdom are already at a record low of 0.5%.
The U.S. Federal Reserve is back in focus today with a speech from Fed Bank of Cleveland President Loretta Mester. The speech takes place in London, where Mester will appear before the European Economics Financial Centre Distinguished Speakers Seminar. Investors want to know if Mester will maintain a hawkish tone in the wake of Britain's exit vote from the European Union.
It will be a busy day for General Motors Co. (NYSE: GM) and Ford Motor Co. (NYSE: F) as U.S. manufacturers prepare to release June auto sales numbers. The real news is that U.S. regulators are investigating the autopilot features of Tesla Motors Inc. (Nasdaq: TSLA). Regulators began scrutinizing the company after a fatal crash of a 2015 Model S. TSLA stock is off more than 3% in early market trading.
Crude oil prices were off slightly this morning as investors anticipate supply problems in the global market. The Organization of the Petroleum Exporting Countries (OPEC) was pushing toward a record 32.82 million barrels produced each day (bpd) last month. WTI crude slipped 0.5% this morning, while Brent crude was off 0.5%.
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
- Apple Inc. (Nasdaq: AAPL) is in focus this morning on news that the global technology firm is considering a deal to purchase music service Tidal. The deal would be part of the company's ongoing efforts to improve its music-streaming division. Shares of AAPL stock were flat in pre-market hours.
- The deals and offers just keep coming with interest rates so low. On Thursday, Hershey Co. (NYSE: HSY) rejected a $23 billion offer from Mondelez International Inc. (Nasdaq: MDLZ) that would create the world's largest confectioner. Meanwhile, Lions Gate Entertainment Corp. (USA) (NYSE: LGF) said it will purchase premium TV network Starz in an all cash and stock deal worth $4.4 billion.
- Shares of Chipotle Mexican Grill Inc. (NYSE: CMG) slipped as the stock remains under pressure from another public relations disaster. CMG stock was off 0.3% this morning after an executive in the firm has been tied to a New York drug ring. The stock had gained as much as 5% over the last week before retreating to near 52-week lows. The company recently announced plans to establish a customer loyalty program aimed to win back consumers after its outbreak of E. coli last year. With the stock back near $400 per share, should investors buy CMG stock? Find our answer to that question, right here.
- On the earnings front, shares of Micron Technology Inc. (Nasdaq: MU) are under pressure after the company announced plans to restructure its organization. The firm will be cutting jobs as part of an effort to save $300 million. In addition, the chip manufacturer reported a 25% decline in quarterly revenue. Shares were off nearly 9% early this morning.
- No major U.S. companies announce earnings on Friday.
Today's U.S. Economic Calendar (all times EDT)
- PMI Manufacturing Index at 9:45 a.m.
- ISM Manufacturing Index at 10 a.m.
- Construction Spending at 10 a.m.
- Cleveland Federal Reserve Bank President Loretta J. Mester Speaks at 11 a.m.
- Baker Hughes Inc. (NYSE: BHI) Rig Count at 1 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.