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Dow Jones Industrial Average News, 7/27/16 – The U.S. Federal Reserve announced that it will not raise interest rates in July. The news hardly comes as a shock. The markets don't anticipate that the central bank will raise rates until 2017.
The Federal Reserve, however, did leave open the possibility of a rate increase in September. In a statement this afternoon, the central bank said that concerns about overseas risks like the Brexit have largely abated and that it sees improvement in the U.S. labor markets. That confidence will be tested next Friday when the U.S. Labor Department announces the July unemployment rate.
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But a lot more happened on Tuesday than what may have shown up in your news feed.
That includes a number of different profit opportunities and stocks to consider.
Before we get to those stories, check out the results for the Dow Jones, S&P 500, and Nasdaq:
Dow Jones: 18,472.17; -1.58; -0.01%
S&P 500: 2,166.58; -2.60; -0.12%
Nasdaq: 5,139.81; 29.76; 0.58%
Now, here's the top stock market news today… and your best ways to profit.
DJIA Today: The Fed Holds Interest Rates… for Now
The Dow Jones lost about two points despite news that the Fed will not raise interest rates in July. That said, the central bank said that we could see a rate hike by September should U.S. labor conditions continue to improve and global concerns abate. Here's what else you need to know about the FOMC meeting that concluded today.
It was another tough day of earnings reports and forward guidance statements. Shares of Twitter Inc. (NYSE: TWTR) slipped more than 13% after the company reported mixed second-quarter earnings. The reason for the decline: The social media giant offered a sales guidance that included third-quarter revenue of up to $610 million. That's almost 10% less than the $678 million expected on Wall Street. Some people are still trying to argue that Twitter is a must-own stock. But we've got some bad news. This stock isn't going anywhere right now. In fact, it's going to be a long time before this stock recovers.
Meanwhile, shares of The Coca-Cola Co. (NYSE: KO) fell more than 2.3% after the company reported a 5.1% decline in quarterly sales.
Gold prices gained 1.2% after the Federal Reserve's announcement. But the real story is the ongoing descent into fiscal madness ordered by leaders of Japan's economy. This morning, 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. This is helicopter money. In fact, it looks like the Bank of Japan is actually funding the next stock market crash.
With global economies debasing their own currencies and taking on more debt than ever, this is creating a remarkable buying opportunity. Right now is the perfect time to own gold. Money Morning experts recommend buying gold today because we see gains as high as 278% for the precious metal by 2020. Here's why gold prices are going to rally.
Crude oil prices were back at a three-month low as the U.S. Energy Information Administration reported a boost in commercial crude storage from last week. Storage increased by 1.7 million barrels, while analysts expected a drawdown of 2.3 million barrels. The experts were off… by 4 million barrels. WTI crude prices were off 2.1%, while Brent crude prices fell by 3%.
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
- On the earnings front, shares of Apple Inc. (Nasdaq: AAPL) added more than 7.1% after beating earnings. 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. Here's what you need to know about Apple stock right now.
- Shares of Deutsche Bank AG (USA) (NYSE: DB) fell another 3.6% today after the German financial giant announced that its second-quarter net income fell by nearly 100% compared to the same period last year. It is trying to say that the Brexit is not a serious concern over the long term. The reality is that DB stock is under incredible pressure, as is the bank that threatens the health of the entire global financial system. Money Morning Global Credit Strategist Michael Lewitt has a warning for owners of DB stock. He sees it falling to at least $5. And that's a rosy prediction for a firm that could bring the world to its knees at any time.
- After the bell, look for earnings reports from Facebook Inc. (Nasdaq: FB). Investors are excited to hear what the company has been doing after record-setting reports in previous quarters. Wall Street anticipates an EPS figure of $0.81 on top of $6 billion in revenue. Shares were up 1.6% ahead of today's earnings report. The stock is trading at an all-time record high. Does that make FB stock a buy after today's earnings report? Here's what you can expect out of Facebook after its Q2 earnings report.
- Finally, here's your investment of the day. The crude oil price today fell to it its lowest level in three months. While some investors are worried about today's drop, this is actually in line with Money Morning Global Energy Strategist Dr. Kent Moors' expectation of a "range-bound" price climate. According to Moors, crude oil prices are stabilized in the $40 to $50 range. It's all setting up a huge opportunity for investors, starting 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.