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The Dow Jones Industrial Average hit another record high on Monday after a busy day of mergers, acquisitions, and earnings reports from some of the country's largest companies.
Let's recap some of the biggest stories of the day, but more importantly, let's help readers identify ways to make money on these headlines.
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First, check out the results for the Dow Jones, S&P 500, and Nasdaq:
Dow Jones: 18,533.05; +16.50; +0.09%
S&P 500: 2,166.89; +5.15; +0.24%
Nasdaq: 5,055.78; +26.20; +0.52%
Now, here's the top stock market news today… and your best ways to profit.
DJIA Today: Markets Pop on Busy Day of Earnings Reports, Oil Prices Slide
The Dow Jones added another 16 points as traders continue to pour into equities and anticipate greater monetary easing from central banks around the globe. The European Central Bank (ECB) is set to meet this week to discuss the possibility of more financial stimulus later this fall. The markets have been pushing higher since Japanese Prime Minister Shinzo Abe won an election last week and immediately ordered a fresh round of stimulus. But even with new stimulus, there is one policy by Abe that could trigger a stock market crash.
It was another busy day of earnings reports. Shares of Bank of America Corp. (NYSE: BAC) helped pull up the volatile financial sector after the stock added nearly 4%. The firm said that the U.S. Federal Reserve's ongoing low-interest-rate policy is affecting its earnings. However, the company said it did see a sharp uptick in bond trading, which helped the firm top Wall Street expectations.
The company reported earnings per share (EPS) of $0.36, beating Wall Street estimates. The figure is still 20% lower than the $0.45 that it reported during the same period in 2015. Bank of America was off 0.3% this morning due to the stunning level of low expectations that Wall Street has for earnings this quarter. In fact, Money Morning Capital Wave Strategist Shah Gilani believes the big banks could implode before ever being broken up…
Oil prices slipped today as traders overreacted to reports of a supply glut in the global markets. WTI crude prices were off 1.3%, while Brent crude oil dipped 1.1%. This morning, market intelligence firm Genscape projected a higher than expected build at Cushing, Oklahoma. Money Morning Global Energy Specialist Dr. Kent Moors explains that investors are failing to understand the real issue at hand with oil prices. And he's sticking with his higher forecast, which you can read, right here.
Now, let's look at the day's biggest stock movers and the best investments in times of global uncertainty.
Top Stock Market News Today
- Shares of ARM Holdings Plc. (Nasdaq ADR: ARMH) were up 40% on news that the company will sell itself to SoftBank. The news pushed up shares of Broadcom (Nasdaq: AVGO) and Qualcomm Inc. (Nasdaq: QCOM) more than 1%. Shares of SoftBank Group Corp. (OTCMKTS: SFTBF) slipped nearly 3%.
- In other deal news, shares of InterOil Corp. (USA) (NYSE: IOC) were up 16.8% on news that the company has received at least a $2.2 billion offer from international oil giant Exxon Mobil Corp. (NYSE: XOM). That bid tops a previous offer from Oil Search Ltd. (OTCMKTS ADR: OISHY). Why is Exxon trying to buy InterOil Corp.? The company owns a massive amount of natural gas supplies in Papua New Guinea.
- Shares of Hasbro Inc. (Nasdaq: HAS) cratered more than 7.5% after the company missed earnings expectations. Traders dumped the stock due to increased concerns about the health of the toy-making industry. The report also pulled down shares of its rival Mattel Inc. (Nasdaq: MAT) roughly 1%.
- Shares of Netflix Inc. (Nasdaq: NFLX) were flat as the company prepares its quarterly earnings report after the market closes. Should you buy NFLX stock after the company reports this afternoon? You can find that answer, right here.
- Yahoo Inc. (Nasdaq: YHOO) is expected to finally make a decision on its strategic alternatives and the firm prepares to report quarterly earnings. Bidders for the company's assets include AT&T Inc. (NYSE: T); Verizon Communications Inc. (NYSE: VZ); a group that includes Warren Buffett's Berkshire Hathaway Inc. (NYSE: A) and Cleveland Cavaliers' owner Dan Gilbert, and private-equity giant TPG. The company will report earnings later today. According to Yahoo! Finance, Yahoo is projected to report $1.08 billion in revenue. From Yahoo's revenue of $1.24 billion in Q2 2015, that would be a 13.4% decline. Here's more on what to expect out of YHOO stock moving forward.
- After the bell, also lookout for an earnings report from International Business Machines Corp. (NYSE: IBM).
- Finally, here's your investment of the day. Gold prices were up slightly in the wake of the failed Turkish coup. While there will be a lot of chatter about macroeconomic risk this week, investors need to know about the best way to invest in gold right now. Money Morning Executive Editor Bill Patalon offers the single best gold investment out there today in a conversation with Capital Wave Strategist Shah Gilani. Check it out, right here.
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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.