With the Nasdaq back at a new record, opportunity awaits for savvy investors. Money Morning Chief Investment Strategist Keith Fitz-Gerald believes that investing in the markets when they sit at such lofty levels can be very profitable.
Let's look at the final numbers on Thursday for the Dow, S&P 500, and Nasdaq:
Dow Jones: 18,547.30; 17.88; 0.10%
S&P 500: 2,186.90; 4.26; 0.20%
Nasdaq: 5,260.08; 15.48; 0.30%
Here's a look at today's most important market events and stocks, plus a preview of tomorrow's economic calendar.
The Dow gained more than 17 points after technology companies rallied and positive housing market data fueled optimism about the health of the U.S. economy. With earnings season coming to a close, investors are also weighing the timing of the next interest rate hike by the U.S. Federal Reserve. According to minutes from the Fed's most recent policy meeting, eight U.S. Fed banks have urged an interest rate hike in the near future. Investors will turn to Friday's speech by Fed Chair Janet Yellen in Jackson Hole, Wyoming.
New housing data from July indicates that U.S. single-family home sales hit their highest level in almost nine years. Rising housing demand is a boon for the broader U.S. economy. Meanwhile, shares of U.S. homebuilder Toll Brothers Inc. (NYSE: TOL) rallied more than 8.2% after the company easily beat second-quarter earnings expectations. Today's data and earnings boost pushed shares of other homebuilders up on the day, including KB Home (NYSE: KBH) and Lennar Corp. (NYSE: LEN), which gained 5.1% and 3.1%, respectively.
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Crude oil prices pushed higher as traders speculated on a potential production freeze by members of OPEC. The West Texas Intermediate (WTI) crude oil price today added about 1.4%, while the Brent crude oil price gained 1.5%. The global oil cartel will meet in Algeria in late September to discuss efforts to support oil prices after they recently fell to roughly $40 per barrel.
Money Morning Global Energy Strategist Dr. Kent Moors has warned investors that it is unlikely that OPEC will reach a deal during a meeting in September. Kent explains that Saudi Arabia has badly damaged its standing among other crude producers, reducing the probability of a deal.
Gold prices have struggled in recent sessions as traders speculate on the timing of the next interest rate hike by the Federal Reserve. Today, gold prices were flat, settling near $1,340 per ounce.
But the big story today was Best Buy Co. Inc.'s (NYSE: BBY) announcement that it beat earnings estimates. Shares of the big-box retailer surged more than 15% after the company reported quarterly earnings of $0.57 per share, well above Wall Street estimates of $0.43. The firm also reported that same-store sales increased by a staggering 15%.
Now, let's look at the stocks you need to know about today...
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Up Next: Finally, here's some critical advice on how to make money in the markets today. Money Morning Chief Investment Strategist Keith Fitz-Gerald explains that most people can't predict the markets. However, with so many people convinced that we've reached the market top, some investors are afraid to invest. As Keith explains, the sky is not falling, and we can point to history as evidence that great days are in the future for investors. Read Keith's insight, right here.
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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.