Dow Jones Industrial Average News, 8/02/2016: What's the definition of insanity? If you're the Bank of Japan (BoJ), it's that you're expecting a different result from another round of stimulus injections into the nation's struggling economy.
Trending: 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.
This morning, Japan's government cabinet announced it would inject another 28 trillion yen ($275 billion) into the financial system in order to boost the nation's stagnant growth.
Pay no attention to the liquidity trap this nation has experienced for years. It's got to work this time, right?
Before we start the day, Money Morning Capital Wave Strategist Shah Gilani explains the two big central banking lies that are holding up the markets. However, when the lies end, it is going to be a tough time for the markets.
Here is today's top stock market news, stocks to watch, ways to profit, and economic calendar for Aug. 2, 2016.
What's Moving the Dow Jones Industrial Average Today: Japanese Stimulus
Dow Jones futures projected a 31-point decline this morning. That's somewhat of a surprise, because markets have long enjoyed regular sugar highs produced by global central banks. Markets remain under pressure after six straight losing sessions. The Dow was pulled down on Monday after a sharp sell-off in energy stocks as crude prices slumped again.
WTI crude prices were increasing this morning despite ongoing concerns about a supply glut in the global energy markets. WTI crude was up 1%, while Brent crude prices added 1.5%.
The U.S. Federal Reserve is back in focus today. Dallas Fed Bank President Robert Kaplan warned investors on a number of different risks to the global economy. Kaplan continues to argue that the U.S. central bank should take their time with interest rates in the months ahead. The risk that people are still ignoring is the pending departure of Britain from the European Union. In fact, this has created a massive profit opportunity that many Americans have ignored.
The 2016 Summer Olympic Games kick off Friday, Aug. 5, in Rio de Janeiro, Brazil. Already, the headlines have centered on the Zika virus, potential terror plots, and filthy water. These Summer Games could be a serious challenge for Brazil to maintain. But the story that everyone seems to miss is the impact of the Summer Olympics on the Dow Jones Industrial Average. There's a lot of evidence that shows a handful of profit opportunities for certain companies that have a big stake in the games. Find out more about these opportunities, right here.
It's another busy day of earnings reports. This morning, Pfizer Inc. (NYSE: PFE) and Proctor & Gamble Co. (NYSE: PG) are pushing higher after both firms topped Wall Street earnings expectations.
Keep an eye on auto stocks later today. Shares of General Motors Co. (NYSE: GM) and Ford Motor Co. (NYSE: F) will be in focus as U.S. auto manufacturers report monthly sales data for July.
Now here's your list of top stocks to watch in today's market, plus today' economic calendar:
Companies to Watch in the Stock Market Today
- In deal news, shares of Emerson Electric Co. (NYSE: EMR) were off 3.6% after the company announced plans to sell several divisions. The firm will sell its motors and drives division to Nidec Corp. (OTCMKTS ADR: NJDCY) for $1.2 billion. The company is also selling its Network Power unit to an investment consortium for roughly $4 billion.
- The deals don't stop there. This morning, Salesforce.com Inc. (NYSE: CRM) announced that it is purchasing word-processing app Quip for $582 million. Quip is an emerging file-sharing application that is an alternative to Google Documents and Google Drive.
- Shares of CVS Health Corp. (NYSE: CVS) were up more than 2% this morning after the company reported second-quarter profits declined but offered an upbeat outlook for the third quarter.
- Look for additional earnings reports from Fitbit Inc. (NYSE: FIT), Electronic Arts Inc. (Nasdaq: EA), Tableau Software Inc. (Nasdaq: DATA), and Sturm, Ruger & Co. Inc. (NYSE: RGR). Perhaps the most intriguing company in this list is Fitbit, which has struggled and remains well off its 52-week high. Here's everything you need to know about Fitbit before it announces earnings.
Today's U.S. Economic Calendar (all times EDT)
- Dallas Federal Reserve Bank President Rob Kaplan speaks at 6:15 a.m.
- Personal Income and Outlays at 8:30 a.m.
- Gallup US ECI at 8:30 a.m.
- Redbook at 8:55 a.m.
- 4-Week Bill Auction at 11:30 a.m.
Up Next: Why We Never Trust Big Bank Oil Price "Forecasts" (Especially Now)
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About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.