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Dow Jones Industrial Average News, 7/29/2016: Get ready for another wild day on Wall Street.
We were off in pre-market hours because of our constant addiction to cheap money. Markets were in the red in pre-market hours due to the Bank of Japan (BoJ).
This morning, the central bank announced just a modest boost in monetary stimulus. The BoJ did not cut interest rates deeper into already negative territory.
The markets were largely expecting what bordered on helicopter money. Instead, the markets just have to settle for hundreds of billions in stimulus.
These crazy policies may fuel the next stock market crash…
Here is today's top stock market news, stocks to watch, ways to profit, and economic calendar for July 29, 2016.
What's Moving the Dow Jones Industrial Average Today: Weak Q2 GDP Growth
Dow Jones futures projected a 39-point decline after a dismal second-quarter GDP report indicated that the economy is not as healthy as economists keep telling us. GDP grew at a paltry rate of 1.2%, well short of the 2.6% set by economists.
In earnings news, it's a bad morning
Shares of Amazon.com Inc. (Nasdaq: AMZN) are up more than 2.1% in pre-market hours after the e-commerce giant reported a huge beat of Wall Street earnings expectations. Yesterday, we were talking about the possibility that shareholders could panic if Amazon missed earnings. Today, we're talking about why the company's stock continues to surge.
The Fed Open Market Committee announced that it would not raise interest rates this month, but hinted that a hike could be possible by September. Despite the rhetoric, the markets largely do not anticipate a rate hike this year. Policymakers have not increased interest rates in 2016 for several reasons. The Fed is concerned about a slowdown in China, the uneven U.S. economic recovery, and global stock market volatility. The question now is whether we will even see another rate hike this year, let alone by September. We answer that, right here.
On the political front, the Democratic National Convention concluded on Thursday night. Hillary Clinton accepted the nomination and is the first woman to become the nominee of a major U.S. political party.
Oil prices were falling hard after a bad GDP report. WTI crude oil prices were up 1.1%, while Brent crude oil prices were off 1.6%. Investors are still concerned about a global glut in supply. That will be in focus today when Baker Hughes Inc. (NYSE: BHI) offers an update on the U.S. rig count.
It's a big day for energy stocks with Exxon Mobil Corp. (NYSE: XOM) and Chevron Corp. (NYSE: CVX) reporting earnings. So far, not good. XOM stock is off 2.4% this morning after the company fell well short of Wall Street earnings expectations. Is this decline an opportunity to own XOM stock? We tackle XOM stock expectations and let you know what to do.
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 Facebook Inc. (Nasdaq: FB) hit an all-time high yesterday after topping Wall Street earnings expectations. Now, all the speculation centers on when Facebook stock will split. After all, the Facebook stock split vote passed on June 20, but no official split date has been set. Here's what you need to know.
- Shares of Alphabet Inc. (Nasdaq: GOOGL) were up more than 4.2% in pre-market hours after the company shattered earnings expectations on Thursday afternoon. The global Internet giant reported a 21% increase in revenue and a 20% jump in adjusted earnings. The firm has seen an explosion in revenue from its Google sites and its mobile services divisions.
- Shares of Microsoft Corp. (Nasdaq: MSFT) were off slightly after the company announced plans to slash more than 2,800 jobs over the next year. The firm's total workforce reduction is now set for roughly 4,700 workers.
- Look out for additional earnings reports from United Parcel Service Inc. (NYSE: UPS), Merck & Co. Inc. (NYSE: MRK), Spirit Airlines Inc. (Nasdaq: SAVE), Xerox Corp. (NYSE: XRX), and AbbVie Inc. (Nasdaq: ABBV).
Today's U.S. Economic Calendar (all times EDT)
- GDP at 8:30 a.m.
- Employment Cost Index at 8:30 a.m.
- San Francisco Federal Reserve Bank President John Williams speaks at 9:30 a.m.
- Chicago PMI at 9:45 a.m.
- Consumer Sentiment at 10 a.m.
- Baker Hughes Rig Count at 1 a.m.
- Rob Kaplan Speaks at 1 a.m.
- Farm Prices at 3 a.m.
Up Next: The Internet of Things revolution will create a $6 trillion market – and these five stocks are the best way to grab a piece of those gains for yourself.
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.