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Dow Jones Industrial Average News, 7/07/2016: Thursday's trading session will kick off with a double-dose of critical jobs data.
This morning, the June ADP Employment report showed that the U.S. economy added 172,000 positions compared to the 159,000 positions that economists had expected.
This morning, the U.S. Department of Labor released its latest round of weekly unemployment data. U.S. initial jobless claims fell by 16,000 to 254,000, representing their lowest level since April.
These two reports are building toward tomorrow's critical June unemployment report. While jobs data may dominate the early news cycle, a number of other stories and profit opportunities await savvy investors on what could be a wild day of trading.
Here are today's top stock market news, stocks to watch, ways to profit, and economic calendar for July 7, 2016.
What's Moving the Dow Jones Industrial Average Today: Oil Gains, Brexit Back in Focus
Dow Jones futures projected a 15-point decline as the markets eye jobs data and the price of oil. European markets have been rebounding after a difficult Wednesday session for foreign markets. If you really want to know more about what is going on with oil and not have to rely on bank forecasts, make sure to read this special report by Money Morning Global Energy Strategist Dr. Kent Moors.
Britain's vote to exit the European Union is fueling another crisis in the United Kingdom: real estate. Four additional asset management firms have announced plans they will stop trading in commercial real estate and UK property. Now, seven investment funds have been frozen as they've failed to raise enough cash to repay investors. However, chaos always creates opportunity, and these five stocks are now on sale because of Brexit.
According to a report by Reuters, JPMorgan Chase & Co. (NYSE: JPM) may need to relocate thousands of investment bankers from Britain if it isn't allowed to engage EU customers or sell services without its free-trade "passporting" systems. This system was essential to make London the financial and energy finance center of Europe. As Money Morning Global Energy Strategist Dr. Kent. Moors explains, the Brexit has killed London's status as the energy capital of Europe.
The U.S. Federal Reserve is back in focus after yesterday's release of the June FOMC meeting minutes. The central bank hinted that it doesn't plan on hiking interest rates until the fallout from the Brexit is better understood. The dollar continues to surge in the wake of the Brexit, gaining more than 2% since the vote. The Brexit – in many ways – did Fed Chair Janet Yellen's job for her as the dollar grew stronger against a basket of international currencies.
Crude oil prices were on the rise this morning as an expected weekly drawdown in domestic inventories are offsetting concerns about global economic growth. Yesterday, the American Petroleum Institute (API) reported that domestic crude stockpiles slipped by 6.7 million barrels last week. That represents the seventh straight weekly decline, according to API data. This morning, look out for the official government report on weekly inventories from the U.S. Energy Information Administration. WTI crude prices were up 1%, while Brent crude added 1.1%.
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
- On the deal front, shares of WhiteWave Foods Co. (NYSE: WWAV) are up more than 18% on news that the Denver-based organic food maker will be purchased by French dairy rival Danone SA (OTCMKTS ADR: DANOY). The deal is worth roughly $12.5 billion and will help Danone expand its reach in the organic business industry in the future. Shares of DANOY were up more than 3.5% in pre-market hours.
- That's not the only deal to hit the wire this morning. Shares of AVG Technologies NV (NYSE: AVG) were up more than 20% on news that the tech firm will be purchased by Avast Software for roughly $1.3 billion.
- Things keep going from bad to worse for the world's largest bank, Deutsche Bank AG (USA) (NYSE: DB). The company desperately needs cash and is dramatically overleveraged. The firm will sell $1 billion in energy debt in order to raise capital. The DB stock price was down 3.2% on Wednesday, and slid another 2.1% early this morning.
- On the earnings front, shares of PepsiCo Inc. (NYSE: PEP) were up 1.2% after the company reported a strong increase in organic growth and beat quarterly earnings expectations. The company also hiked its full-year guidance.
- Additional companies reporting earnings on Thursday include WD-40 Co. (Nasdaq: WDFC), PriceSmart Inc. (Nasdaq: PSMT), Apollo Education Group Inc. (Nasdaq: APOL), Barracuda Networks Inc. (NYSE: CUDA), and Helen of Troy Ltd. (Nasdaq: HELE).
Today's U.S. Economic Calendar (all times EDT)
- Challenger Job-Cut Report at 7:30 a.m.
- ADP Employment Report at 8:15 a.m.
- Jobless Claims at 8:30 a.m.
- Gallup Good Jobs Rate at 8:30 a.m.
- Bloomberg Consumer Comfort Index at 9:45 a.m.
- EIA Natural Gas Report at 10:30 a.m.
- EIA Petroleum Status Report at 11 a.m.
- 3-Month Bill Announcement at 11 a.m.
- 6-Month Bill Announcement at 11 a.m.
- 3-Year Note Announcement at 11 a.m.
- 10-Year Note Announcement at 11 a.m.
- 30-Year Bond Announcement at 11 a.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.