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Dow Jones Industrial Average News, 8/8/2016 – Wall Street pulled back from record highs on Monday despite increased optimism about the health of the U.S. economy and global stimulus efforts.
Following last week's busy calendar of economic data, the markets are turning back to earnings reports as the dog days of August continue.
But while healthcare earnings and stock movement dominated the headlines today, many investors missed a few key profit opportunities.
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Before we get to those stories, check out the results for the Dow Jones, S&P 500, and Nasdaq:
Dow Jones: 18,529.29; -14.24; -0.08%
S&P 500: 2,180.89; -1.98; -0.09%
Nasdaq: 5,213.14; -7.98; -0.15%
Now, here's the top stock market news today… and your best ways to profit.
DJIA Today: Healthcare Stocks Slump After Weak Allergan Earnings Report
The Dow Jones fell 14 points despite a sharp uptick in oil prices and growing optimism about Friday's jobs report.
It was a tough day for healthcare stocks. The S&P 500 Healthcare Index fell more than 1%, a decline fueled by a 2.8% decline in shares of Allergan Plc. (NYSE: AGN). The manufacturer of Botox fell short of Wall Street expectations. The firm also announced plans to sell its Anda drug division to international rival Teva Pharmaceutical Industries Ltd. (NYSE ADR: TEVA). Shares of Bristol-Myers Squibb Co. (NYSE: BMY) were off more than 4.5% as the company faces questions after a failed drug trial. Finally, shares of Merck & Co. Inc. (NYSE: MRK) also slid due to sector-wide pressures.
Meanwhile, the S&P 500 retreated from its record high. Investors are keeping a close eye on the timing of the next interest rate hike. According to CME FedWatch, the probability that the U.S. Federal Reserve will increase interest rates in September sits at just 18%. The probability does not exceed 50% until March 2017. The Federal Reserve has spent the last two years teasing investors with the chance of a rate normalization. The central bank has only raised interest rates one time since introducing its zero-interest-rate (ZIRP) policy. As Money Morning Capital Wave Strategist Shah Gilani explains, it's time to kill this scheming central bank and replace it with a monetary policy system that works.
Silver prices were on the rise again as optimism grows about its ongoing price rally. Silver is the best-performing precious metal, returning 47% so far this year. That outpaces gold prices, which are up about 26% over the same period. But we're just getting started. Money Morning Resource Specialist Peter Krauth argues that silver prices could soon top $22 per ounce. It's all because of this one factor.
Crude oil prices were pushing higher as producers clamored again for a global production freeze. According to Reuters, the recent price dip to roughly $40 per barrel has OPEC members prepared to reignite debate about a reduction in crude production in order to support crude prices. The last time this was proposed, Iran and Saudi Arabia nearly engaged in cross-border war. A date for OPEC leaders to meet has not been set, but Money Morning Global Energy Specialist Dr. Kent Moors has vital insight. The global energy sector is swimming in debt and support levels are vital to long-term price stability. Dr. Moors breaks down what the "Trillion-Dollar Time Bomb" means to energy investors.
WTI crude was up 2.4%, while Brent crude prices gained 2%.
On the deal front, Wal-Mart Stores Inc. (NYSE: WMT) announced plans to purchase e-commerce giant Jet.com for roughly $3.3 billion. While the deal size is a new record for the retail giant, investors need to know that Wal-Mart will be facing stiff competition from its e-commerce rival Amazon.com Inc. (Nasdaq: AMZN). Here's why we think you should avoid WMT stock after this deal.
Now, let's look at the day's biggest stock movers and Money Morning's stock insight of the day.
Top Stock Market News Today
- In earnings news, shares of Sotheby's (NYSE: BID) surged more than 14% after the auction house crushed Wall Street earnings expectations. The firm beat top and bottom line estimates.
- Shares of Delta Air Lines Inc. (NYSE: DAL) rebounded after the company saw its flights grounded for six hours on Monday. The company reported a computer outage, which led to significant delays and cancelations. Shares were off 0.3% on the day.
- Meanwhile, keep an eye out for additional earnings reports after the bell from Rackspace Hosting Inc. (NYSE: RAX), SINA Corp. (Nasdaq: SINA), and Hertz Global Holdings Inc. (NYSE: HTZ).
- Finally, here is your insight of the day. Earnings season has surpassed analysts' expectations. But the sector that has completely blown the doors off forecasts has been one of our favorites: technology. If you want to make money – big money – you need to know about the four best tech stocks to buy now as we wrap up Q2 earnings season. Money Morning Director of Tech & Venture Capital Michael A. Robinson outlines these four plays, right here.
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