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Dow Jones Industrial Average News, 7/06/2016: Wednesday's trading session will be busy, and the highlight will be the release of the June Fed Open Market Committee minutes.
But that's not all investors should be watching. With the futures projecting another triple-digit loss for the Dow Jones, investors will want to get as much information as possible before trading begins.
Here are today's top stock market news, stocks to watch, ways to profit, and economic calendar for July 6, 2016.
What's Moving the Dow Jones Industrial Average Today: Banks Sink, Gold Rallies
Dow Jones futures projected a 98-point sell-off at the opening bell as equities and bonds continue to fall because of global uncertainty. Ongoing woes and concerns in Europe are dragging down banking stocks. Shares of Goldman Sachs Group Inc. (NYSE: GS) were off 0.6%, while Wells Fargo & Co. (NYSE: WFC) was off 1.1%. Gold prices are rallying again, adding another 1.3% in global trading. Meanwhile, silver prices topped $20 per ounce earlier this morning. Find out the one metric that will dictate the silver rally in 2016 right here.
The U.S. Federal Reserve is in focus today after the 30-year bond hit a record low. Two members of the Federal Reserve – New York Bank President William Dudley and central bank Gov. Daniel Tarullo – will offer speeches later today.
Gold prices rallied to a 28-month high as global risks pop up in different parts of the world. Asian stocks have been falling, while the British pound sits at a 31-year low. New reports indicate that the stability of Italian finances and politics may soon fracture, setting off a completely new set of problems for the European Union.
The Brexit uncertainty isn't stopping any merger and acquisition activity. British industrial investor Melrose Industries announced plans to purchase rival Nortek Inc. (Nasdaq: NTK) for $2.81 billion. This is the largest cross-border deal since the British voters elected to leave the European Union. The deal allows Melrose to diversify in the wake of an expected Brexit-related slowdown in its home market.
Crude oil prices were falling again as the dollar grows stronger and global economic concerns weigh on trader sentiment. WTI crude prices were off 1.1%, while Brent crude slipped 1.4%.
According to a new study, the United States now has more oil reserves than both Saudi Arabia and Russia. It is the first time that American crude reserves have reached this esteem, according to Rystad Energy. The United States has reserves of 264 billion barrels, more than the 256 billion in Russia and the 212 billion in Saudi Arabia.
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) stock is back in focus today after The Wall Street Journal reported that its latest version of the iPhone will start with 32 GB as the basic level. AAPL stock was still off 0.5% in pre-market hours.
- French drugmaker Sanofi SA (NYSE ADR: SNY) announced that it has reached a deal with the U.S. military to accelerate its development of a Zika virus vaccine. The company will work in direct agreement with the Walter Reed Army Institute of Research. SNY is down 1.69% early this morning.
- Shares of Tesla Motors Inc. (Nasdaq: TSLA) slipped more than 2% early this morning after investors sold due to concerns about safety and operational efficiency at the organization. On May 7, the electric vehicle's self-driving vehicle technology led to the death of a driver. The company is under scrutiny for failing to make the accident public before federal regulators began an investigation. Meanwhile, the company again failed to meet its production and delivery target for the second straight quarter.
- Shares of Netflix Inc. (Nasdaq: NFLX) slipped 2% in pre-market hours after the company received a downgrade from investment firm Jefferies and a stunning price target of just $80 per share. The downgrade comes a day after a big announcement for Netflix – it will land its services in the X1 platform boxes of cable giant Comcast Corp. (Nasdaq: CMCSA), adding another point of access and consumer base for their streaming services.
- On the earnings front, shares of Walgreens Boots Alliance Inc. (Nasdaq: WBA) were sliding this morning after quarterly revenue numbers fell short of investor expectations. Still, it wasn't all bad news as WBA raised its forward guidance and expects no negative impact in its deal for Rite Aid Corp. (NYSE: RAD).
- Additional companies reporting earnings on Monday include Greenbrier Companies Inc. (NYSE: GBX) and MSC Industrial Direct Co. Inc. (NYSE: MSM).
Today's U.S. Economic Calendar (all times EDT)
- MBA Mortgage Applications at 7 a.m.
- New York Federal Reserve Bank President William Dudley speaks at 8 a.m.
- International Trade at 8:30 a.m.
- Gallup U.S. Job Creation Index at 8:30 a.m.
- Redbook at 8:55 a.m.
- Federal Reserve Gov. Daniel Tarullo speaks at 9 a.m.
- PMI Services Index at 9:45 a.m.
- ISM Non-Manufacturing Index at 10 a.m.
- FOMC Minutes at 2 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.