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Dow Jones Industrial Average News, 7/27/2016: We have a full day of earnings reports and speculation on economic stimulus on tap for today.
Global markets are rallying again this morning as central banks continue to pump money into the economy in a desperate attempt to re-inflate domestic growth.
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European and Asian markets were rallying after Japanese Prime Minister Shinzo Abe announced plans to issue a $265 billion stimulus package. Simply put, the wheels are completely off in Japan and the sugar addiction is running strong.
The nation is now even considering a bold plan to issue 50-year bonds for the first time ever. That would be the longest maturity timeline from the Japanese government debt in the post-war era.
Let's be honest: This is Helicopter Money. In fact, it looks like the Bank of Japan is actually funding the next stock market crash.
Investors need to keep an eye on this story and a number of other topics that are flying under the radar on this busy Wednesday.
Here is today's top stock market news, stocks to watch, ways to profit, and economic calendar for July 27, 2016.
What's Moving the Dow Jones Industrial Average Today: The Federal Reserve
Dow Jones futures projected a 49-point gain ahead of today's Fed announcement on interest rates. Investors believe there is very little chance that the Fed takes any action today on interest rates. CME Group projects just a 2% chance that the company will raise rates in July. However, CME projects a 40% probability that the Fed will increase rates in December. If the Fed actually does raise interest rates in 2016, this is the best stock to buy.
On the political front, Hillary Clinton has made history by receiving the nomination for president candidate of the Democratic Party. The Democratic National Convention featured a floor vote between delegates that featured Clinton topping Sen. Bernie Sanders (D-VT). Last night, former President Bill Clinton gave a long speech about his wife's lifetime of public service. The convention continues today, and President Barack Obama is the keynote speaker.
Gold prices ticked down 0.1% ahead of today's rate announcement. Money Morning experts recommend buying gold because we see gains as high as 278% for the precious metal by 2020.
Oil prices fell to three-month lows as concerns about oversupply continue to rattle investor sentiment. Markets are anticipating a report by the U.S. Energy Information Administration and expect that inventory levels are going to start turning upward. WTI crude oil prices fell 0.3%, while Brent crude oil prices dipped 0.8%.
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
- Shares of Apple Inc. (Nasdaq: AAPL) rallied more than 7% in pre-market hours after the company topped Wall Street earnings expectations after the bell yesterday. The firm reported that it surpassed analyst expectations and sold 40.4 million iPhones over the quarter. The firm did report that its revenue fell by 15%, while its earnings per share (EPS) dipped by 23% compared to the same period last year. The company did see a lot of revenue growth from its Apple Music, App Store, and iCloud divisions. So, is AAPL stock a buy after its third-quarter earnings report? We tackle that question, right here.
- In deal news, shares of Linear Technology Corp. (Nasdaq: LLTC) are off more than 3.3% in pre-market hours. Just before the close yesterday, shares rallied more than 29% on news that it would sell itself Analog Devices Inc. (NYSE: ADI) for $14.8 billion.
- It is another tough trading day for Twitter Inc. (NYSE: TWTR). Shares are off more than 7% in pre-market hours after the firm reported weak earnings after the bell. The firm also offered a rather dismal outlook for the third quarter, reporting that third-quarter revenue will be 10% less than Wall Street expectations. With the stock price cheaper, though, find out if it is worth buying Twitter.
- The Facebook stock price is trading near an all-time high today (Wednesday) as investors anxiously await for Facebook Inc. (Nasdaq: FB) to report Q2 2016 earnings. Should you own FB stock after today's earnings report? Here's everything you need to know ahead of the report.
- Shares of The Coca-Cola Co. (NYSE: KO) were off more than 2.1% after the company reported weaker than expected second-quarter earnings. The soda manufacturer reported a 5% decline in sales and missed sales expectations by roughly $100 million. The firm also reported challenges due to currency fluctuations.
- Look out for additional earnings reports from GoPro Inc. (Nasdaq: GPRO), Groupon Inc. (Nasdaq: GRPN), Whole Foods Market Inc. (NYSE: WFM), Boeing Co. (NYSE: BA), Amgen Inc. (Nasdaq: AMGN), and Marriott International Inc. (NYSE: MAR).
Today's U.S. Economic Calendar (all times EDT)
- MBA Mortgage Applications at 7 a.m.
- Durable Goods Orders at 8:30 a.m.
- Pending Home Sales Index at 10 a.m.
- EIA Petroleum Status Report at 10:30 a.m.
- 2-Yr FRN Note Auction at 11:30 a.m.
- FOMC Meeting Announcement at 2 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.