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Dow Jones Industrial Average News, 7/21/2016: The Dow Jones has closed at record highs for seven-straight trading sessions, but today looks to be the day that the streak ends.
The markets today face another busy day of earnings reports and economic data. But this morning, futures were retreating as the markets seemed upset that additional stimulus measures weren't set to push them to new highs.
While monetary policy is the big story before the bell, let's turn to a number of other key headlines and stories that slipped under the radar.
Most important, let's find you ways to trade this news and make a tidy profit. You can start with this insight from Money Morning Chief Investment Strategist Keith Fitz-Gerald on why it's better to "be long than wrong."
Here is today's top stock market news, stocks to watch, ways to profit, and economic calendar for July 21, 2016.
What's Moving the Dow Jones Industrial Average Today: ECB and the Bank of Japan
Dow Jones futures projected a 20-point decline after the European Central Bank announced that it will not cut interest rates. The ECB will keep its key rate at 0% and its savings deposit rate at (negative) -0.40%. That means that anyone with a savings account must pay the bank money to store it here.
Meanwhile, the Bank of Japan isn't quite ready to throw the full kitchen sink at its ongoing liquidity trap. Japanese central bank governor Haruhiko Kuroda said that he is ruling out "helicopter money" to boost inflation and growth in the world's third-largest economy. Money Morning Capital Wave Strategist Shah Gilani continues to argue that two central bank lies and misdirection could trigger a market crash.
Tesla Motors Inc. (Nasdaq: TSLA) slipped more than 1.4% despites news that its CEO Elon Musk has released his second draft of his company's manifesto. In an update to his 2006 vision for the future of his company, Musk dreams beyond electric vehicles. Musk predicts his company will develop buses, heavy trucks, solar-charging battery packs, and self-driving taxis. With the stock sliding, is this a buying opportunity?
In positive economic news on the jobs front, the U.S. Labor Department announced another low week of Americans seeking unemployment benefits. Last week, 253,000 Americans sought unemployment benefits. That's lower than the 265,000 expected by economists.
The Republican National Convention continues today in Cleveland, Ohio. Last night, delegates booed Sen. Ted Cruz (R-TX) after he failed to fully endorse nominee Donald Trump by telling the audience to "vote your conscience."
In energy deal news, InterOil Corp. (USA) (NYSE: IOC) is set to sell itself to multinational oil giant Exxon Mobil Corp. (NYSE: XOM). The $2.2 billion is set in motion after Australian firm Oil Search dropped out of the auction. XOM stock was flat in early morning trading.
Oil prices were sliding this morning despite yesterday's news that U.S. inventory levels fell for the ninth straight week. WTI crude oil prices were off 0.5%, while Brent crude oil prices dipped 0.6%. Money Morning Global Energy Strategist Dr. Kent Moors argues that sliding oil prices are setting up a profitable investment opportunity for the long term. Here's how Moors says investors should trade oil right now.
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
- In deal news, shares of Joy Global Inc. (NYSE: JOY) rallied nearly 18% after the company announced plans to sell itself for $2.89 billion. The buyer is Japanese construction machinery firm Komatsu Ltd. (OTCMKTS ADR: KMTUY). With debt, the total value of the deal could be as high as $3.7 billion.
- Shares of Intel Corp. (Nasdaq: INTC) were off nearly 3% this morning despite news that the firm beat Q2 earnings estimates. The firm reported a 61.8% gross margin and a sharp decline in operating expenses. Still, the markets were unimpressed by the company's revenue growth from its core Data Center Group.
- Shares of Microsoft Corp. (Nasdaq: MSFT) rallied more than 5% after the company topped earnings expectations late Tuesday afternoon. The stock continued to climb this morning after it reported a sharp uptick in its cloud and productivity growth. Its cloud product Azure increased its revenue by 102%. So, is MSFT a buy right now? Here's everything you need to know.
- Look out for additional earnings reports from Starbucks Corp. (Nasdaq: SBUX), Chipotle Mexican Grill Inc. (NYSE: CMG), Visa Inc. (NYSE: V), Pandora Media Inc. (NYSE: P), AT&T Corporation (NYSE: T), and Advanced Micro Devices Inc. (Nasdaq: AMD).
Today's U.S. Economic Calendar (all times EDT)
- Jobless Claims at 8:30 a.m.
- Philadelphia Fed Business Outlook Survey at 8:30 a.m.
- Chicago Fed National Activity Index at 8:30 a.m.
- FHFA House Price Index at 9 a.m.
- Bloomberg Consumer Comfort Index at 9:45 a.m.
- Existing Home Sales at 10 a.m.
- Leading Indicators at 10 a.m.
- EIA Natural Gas Report at 10:30 a.m.
- 3-Month Bill Announcement at 11 a.m.
- 6-Month Bill Announcement at 11 a.m.
- 2-Year Note Announcement at 11 a.m.
- 2-Year FRN Note Announcement at 11 a.m.
- 5-Year Note Announcement at 11 a.m.
- 7-Year Note Announcement at 11 a.m.
- 10-Year TIPS Auction at 1 p.m.
- Fed Balance Sheet at 4:30 p.m.
- Money Supply at 4:30 p.m.
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.