Start the conversation
This morning, the Dow Jones Industrial Average was sliding in early hours as the markets weigh on weekly jobless data and await the kickoff of a global monetary policy meeting hosted by the Kansas City Federal Reserve Bank.
That's right, the global economic elite will gather to discuss a topic on which it seems they have little expertise: monetary policy.
With the world now awash in negative interest rates, massive stimulus programs, currency devaluations, and dart-throwing central bankers, prepare for greater uncertainty from the U.S. Federal Reserve.
If the United States wants to restore sanity to its economy, here's how the nation can end the Federal Reserve and replace the scheming central bank.
On Wednesday, the Dow slipped 65 points after a decline in biotech and healthcare stocks. Meanwhile, oil prices fell after the U.S. Energy Information Administration reported that domestic crude stockpiles increased by nearly 2.5 million barrels last week.
Let's take a look at Wednesday's stock market numbers:
Dow Jones: 18,481.48; -65.82; -0.35%
S&P 500: 2,175.44; -11.46; -0.52%
Nasdaq: 5,217.69; -42.38; -0.81%
It is going to be a busy day of economic activity, so let's get right to the most important market events and stocks to watch for Aug. 25, 2016.
What's Ahead for the Dow Jones Industrial Average Today
The Dow Jones Industrial Average projects a 33-point decline as investors eye the meeting of the world's banking elite in Jackson Hole, Wyoming. Traders are speculating on the timing of the next rate hike by the central bank. According to CME FedWatch, the probability of a rate hike sits at 21% for September, while a November rate hike sits at 41%. Tomorrow is another big day of speculation for the markets as Federal Reserve Chair Janet Yellen prepares to give a speech.
Oil prices have been falling on rising supply concerns and waning expectations about the size of any production freeze by OPEC. The global oil cartel is set to meet in September to discuss a possible cut to global output. However, Money Morning Global Energy Strategist Dr. Kent Moors has warned investors that it is unlikely OPEC will reach a deal during a meeting in September. In fact, Moors explains that the problems in the global oil market are only getting started for OPEC, just as the Second Arab Spring is underway.
This morning, the WTI crude price was off 0.5%, while Brent crude slid 0.4%.
But the story sliding under the radar is the same as what we discussed yesterday. Shares of drug maker Mylan NV (NYSE: MYL) were up 3.3% after the company responded to congressional pressure to explain its planned price increase of the allergy treatment known as EpiPen. The firm has suffered a massive PR problem after announcing plans to increase the price to $500 per treatment. Even Democratic presidential candidate Hillary Clinton took time to condemn the firm's decision, a statement that helped push the stock down 5.4% on Wednesday.
Stocks to Watch Today, Aug. 25, 2016
- In earnings news, shares of Dollar General Corp. (NYSE: DG) were down more than 7% in pre-market hours after the company failed to meet expectations in its earnings report. The discount retailer is now seen as an important economic health indicator for the United States. Shares of Dollar Tree Inc. (Nasdaq: DLTR) were off nearly 6% in pre-market hours after a similarly bad earnings report.
- Shares of HP Inc. (NYSE: HPQ) fell more than 6% in pre-market hours after the hardware company announced a weak quarterly profit figure despite strong revenue. The firm also reported weak profit estimates due to a decline in printer sales in the business-to-business market.
- Other companies set to report earnings today include GameStop Corp. (NYSE: GME), Splunk Inc. (Nasdaq: SPLK), Tiffany & Co. (NYSE: TIF), Autodesk Inc. (Nasdaq: ADSK), Medtronic Inc. (NYSE: MDT), and SeaDrill Ltd. (Nasdaq: SDRL).
- Finally, here's an investment idea for you before the bell. Finding the top penny stock to buy is the cheapest way to score big returns. And we've found one stock that could make investors profits of 446% over the next four years. Here's the company.
Today's U.S. Economic Calendar (all times EDT)
- Durable Goods Orders at 8:30 a.m.
- Jobless Claims at 8:30 a.m.
- Bloomberg Consumer Comfort Index at 9:45 a.m.
- EIA Natural Gas Report at 10:30 a.m.
- Kansas City Fed Manufacturing Index at 11 a.m.
- 3-Month Bill Announcement at 11 a.m.
- 6-Month Bill Announcement at 11 a.m.
- 7-Year Note Auction at 1 p.m.
- Fed Balance Sheet at 4:30 p.m.
- Money Supply at 4:30 p.m.
Don't Miss: Stocks that pay dividends deliver triple the returns of nonpayers. And these "dividend kings" have boosted payouts 50 years in a row…
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.