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Dow Jones Industrial Average News, 7/12/2016: Markets are rallying yet again on the hope of even more cheap money filtering into the system.
Trending Now: The Next European Brexit Crisis Is in Energy
With bond yields falling to new lows and even into negative territory in some pockets around the globe, investors are jumping back into equities.
Tack on the fact that the Bank of Japan has slashed its inflation forecast, and new speculation emerged this morning that Japan, Britain, and several other countries could be on track for new rounds of stimulus cash. But Japan's negative-interest-rate policy is still very dangerous for the global economy…
The structural calamities of our global economy are very apparent, and it's making it impossible for anyone who foresees market problems on the horizon to short stocks or the broader market as a whole.
Because of that, Money Morning Global Credit Strategist Michael Lewitt has projected the timing of a Super Crash, and investors should heed his warning.
With stimulus sugar on the brain for so many investors, it's critical that they look beyond the headlines toward a number of other stories and profit opportunities available today.
Here is today's top stock market news, stocks to watch, ways to profit, and economic calendar for July 12, 2016.
What's Moving the Dow Jones Industrial Average Today: Post-Jobs Rally
Dow Jones futures projected a 70-point gain as the market builds on an extended rally from Friday's jobs report. In June, the U.S. economy added 287,000 new jobs, while the unemployment rate ticked up slightly to 4.9%. Meanwhile, the S&P 500 appears ready to hit a new all-time high today as investors pour into global stocks.
The Federal Reserve is back in focus today. U.S. Federal Reserve officials Daniel Tarullo, James Bullard, and Loretta Mester will give speeches at some point today. Investors are curious about the timing of the next interest rate hike by the Fed Open Market Committee.
Crude oil prices were pushing higher on a weaker U.S. dollar. This morning, Saudi Energy Minister Khalid al-Falih argued that countries needed to sustain a price above $50 per barrel. However, he conceded that downward pressure would be inevitable due to a rise in global inventories whenever prices appear ready to break out. This morning, WTI crude prices were up 2.4%, while Brent crude prices were up 2.8%. Here is where crude oil prices are heading next.
With the Affordable Care Act eroding before everyone's eyes, President Barrack Obama has doubled down on government involvement in the healthcare sector. The president has called for Congress to create a "public option" for health insurance that would compete against private healthcare providers. Of course, some advocates of the "public option" see it as a pathway to single-payer health insurance and the nationalization of the industry.
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
- Amazon.com Inc. (Nasdaq: AMZN) kicks off its second annual Prime Day. The all-day shopping event is taking place in Japan, the United States, the UK, Spain, Italy, Germany, France, Canada, Belgium, and Austria. And while the company is selling a lot of electronics at a discount, it also appears to be clearing inventory of many Amazon tablets, Echo, Fire TV, and Fire TV stock devices. The deals are exclusive to Amazon Prime customers, which costs $99 per year and offers free shipping to customers. Rival Wal-Mart Stores Inc. (NYSE: WMT) has announced that online shoppers can receive free shipping over the next five days in order to compete with Amazon. Last year, AMZN stock rallied after Prime Day. Should you buy AMZN stock after the bell?
- In deal news, movie theater giant AMC Entertainment Holdings Inc. (NYSE: AMC) announced plans to purchase London-based Odeon & UCI Cinemas Group for $1.2 billion in cash and stock. The firm will buy the firm from private-equity giant Terra Firma.
- Tesla Motors Inc. (Nasdaq: TSLA) are back in focus today after another accident – this time in Montana – is being blamed on the autopilot feature. TSLA shares were still up 0.1% in pre-market hours. The U.S. Securities and Exchange Commission is digging into whether the company broke laws by failing to report the accident to customers of the Model S.
- Earnings season unofficially kicked off on Monday afternoon with the second-quarter report of alumina giant Alcoa Inc. (NYSE: AA). Shares of Alcoa jumped more than 5% in pre-market hours after the company beat expectations.
- On the earnings front, shares of Fastenal Co. (Nasdaq: FAST) were off after the company missed estimates. The company reported earnings per share (EPS) of $0.45 on top of $1.104 billion in revenue. Both figures are short of the $0.48 EPS expectation and projection of $1.2 billion in revenue.
- Additional companies reporting earnings on Tuesday include ADTRAN Inc. (Nasdaq: ADTN) and AAR Corp. (NYSE: AIR).
Today's U.S. Economic Calendar (all times EDT)
- NFIB Small Business Optimism Index at 6 a.m.
- St. Louis Federal Reserve Bank President James Bullard speaks at 8:45 a.m.
- Redbook at 8:55 a.m.
- JOLTS at 10 a.m.
- Wholesale Trade at 10 a.m.
- 4-Week Bill Auction at 11:30 a.m.
- 10-Year Note Auction at 1 p.m.
- Minneapolis Federal Reserve Bank President Neel Kashkari speaks at 5:30 p.m.
- Cleveland Federal Reserve Bank President Loretta J. Mester speaks at 10:30 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.