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Dow Jones Industrial Average News, 8/09/2016: We're in the home-stretch of earnings season and investors are pouring money into the markets.
With central banks pushing interest rates lower and blowing out massive stimulus programs, equities are the place to be. Markets keep hitting new highs, but some of the "smartest people in the room" keep telling investors to get out.
Here's our Chief Investment Strategist Keith Fitz-Gerald on why it's foolish to fight the rally.
On Friday, the S&P 500 and Nasdaq closed at new records. Today, they aim to do the same.
While everyone is focused on the new records, several important stories and key profit opportunities may have slipped under the radar.
Let's get to today's top stock market news, stocks to watch, ways to profit, and economic calendar for Aug. 9, 2016.
What's Moving the Dow Jones Industrial Average Today: Oil and Earnings
Dow Jones futures projected a 26-point gain in pre-market hours as traders eye oil prices and the tail-end of earnings season. The company everyone will be talking about today is Walt Disney Co. (NYSE: DIS). The entertainment giant will report Q3 earnings after the bell today. The stock is off more than 8% so far this year, and investors are curious about the impact of its sports-entertainment division, ESPN. Should you buy DIS stock after its Q3 earnings? That's the question we answer, right here.
Energy stocks are back in focus as traders eye oil prices. This morning, WTI crude was up 0.1%, while Brent crude prices dipped marginally. Yesterday, oil prices rallied after the Organization of Petroleum Exporting Countries (OPEC) announced plans to meet in September. Traders are speculating that the oil cartel is poised to discuss a deal to cap output. Meanwhile, investors await tomorrow's critical update on crude inventories from the U.S. Energy Information Administration. Keep an eye on shares of Exxon Mobil Corp. (NYSE: XOM), Chevron Corp. (NYSE: CVX), and ConocoPhillips (NYSE: COP).
The political debate is heating up about the need for U.S. manufacturing to return to the United States. On a recent episode of "Making Money," Money Morning Capital Wave Strategist Shah Gilani confronted the question of whether or not manufacturing jobs can return to America. Shah thinks they would be a massive boost to the economy – in terms of both unemployment numbers and the GDP numbers – if the folks in Washington can get it done. Click here to watch the interview.
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 earnings news, shares of Valeant Pharmaceuticals International Inc. (NYSE: VRX) climbed 6% despite news that the company fell short of earnings expectations. The pharmaceutical giant – a long-term investment of hedge fund manager Bill Ackman – reported earnings per share (EPS) of $1.40 on top of $2.42 billion in revenue. Wall Street expected $1.61 on top of $2.59 billion. What pushed the stock higher? The company's CEO Joseph Papa announced that the firm's turnaround strategy is showing progress.
- In deal news, shares of Monster Worldwide Inc. (NYSE: MWW) rallied more than 22% this morning on news that the human resources giant will be purchased by Randstad Holdings for $429 million. The deal is worth $3.40 per share.
- Shares of Gap Inc. (NYSE: GPS) fell more than 4.4% after the company reported weaker than expected sales in July. The firm said that same-store sales dropped 4% last month. The company cited a 14% drop in sales from its Banana Republic stores. The company did say that it expected an improvement in overall sales in the months ahead.
- Gap isn't the only struggling retail giant. Shares of Coach Inc. (NYSE: COH) were off 2.2% after the company reported weaker than expected earnings and said it will close 25% of its North American stores.
- Look for additional earnings reports from Yelp Inc. (NYSE: YELP), SolarCity Corp. (Nasdaq: SCTY), Fossil Group Inc. (Nasdaq: FOSL), Jazz Pharmaceuticals Plc. (Nasdaq: JAZZ), and Mylan NV (NYSE: MYL).
Today's U.S. Economic Calendar (all times EDT)
- NFIB Small Business Optimism Index at 6 a.m.
- Productivity and Costs at 8:30 a.m.
- Redbook at 8:55 a.m.
- Wholesale Trade at 10 a.m.
- 4-Week Bill Auction at 11:30 a.m.
- 3-Year Note Auction at 1 p.m.
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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.