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This morning, the Dow Jones Industrial Average was pushing higher in premarket hours as investors eye a fresh round of economic data, quarterly earnings reports, and a glut of deal news.
On Monday, U.S. markets were closed for the Labor Day holiday. But that didn't stop a busy day for the global markets.
Global markets were relatively flat as investors eyed the G-20 conference in China. Russia and Saudi Arabia made headlines after ramping up support for a possible production freeze to support higher oil prices.
On Friday, the Dow gained 72 points after the August jobs report came in much weaker than economists had anticipated.
The weak report zapped remaining hopes for an interest rate hike in September.
Let's take a look at Friday's stock market numbers:
Dow Jones: 18,491.72, +72.53, +0.39%
S&P 500: 2,179.98, +9.12, +0.42%
Nasdaq: 5,249.90, +22.69, +0.43%
Now, here's a look at what else is moving the markets, plus a preview of tomorrow's economic calendar.
What's Ahead for the Dow Jones Industrial Average Today
The Dow Jones Industrial Average projected a 20-point gain at the opening bell. Following last week's jobs report, investors continue to speculate on the timing of the next interest rate hike.
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It's an incredibly busy day in deal news. General Electric Co. (NYSE: GE) announced that it will purchase two European 3D printing companies for $1.4 billion. In an effort to boost its 3D manufacturing capabilities, GE is buying equipment suppliers Arcam and SLM Solutions.
Meanwhile, German drug giant Bayer AG (ADR) (OTCMKTS: BAYRY) isn't willing to take "No" for an answer. The firm has increased its bid for global seed giant Monsanto Co. (NYSE: MON) to $127.50 per share. That surpasses the $64 billion bid it posted in July, but was rejected by MON stock shareholders.
Oil prices were mixed in premarket hours as investors weigh the possibility of a production freeze by global producers. Saudi Arabia has been sending mixed signals about the potential for a deal when OPEC meets in Algeria later this month. On Monday, representatives of Saudi Arabia and Russia agreed to cooperate to help boost prices. However, Saudi Energy Minister Khalid al-Falih later said that a deal wasn't necessary at the moment. This morning, the WTI crude price was up 0.5%, while Brent crude slipped 0.9%.
But the big news this morning is about central banks. While central banks around the globe have been pushing interest rates to record lows, they've also been doing something else that is shocking. These entities and commercial "Too Big to Fail" banks have been buying undervalued gold and silver miners. In fact, they have been engaging in this behavior for five years.
Stocks to Watch Today, Sept. 5, 2016
- Shares of Marvell Technology Group Ltd. (Nasdaq: MRVL) fell nearly 5.5% this morning after the company provided a weak forecast. The company is still undergoing a change after it ousted its former CEO in June.
- Shares of Navistar International Corp. (NYSE: NAV) rallied nearly 28% in premarket hours on news that global auto giant Volkswagen AG (ADR) (OTCMKTS: VLKAY) plans to purchase a 17% stake in the firm. The German manufacturer aims to boost its market share in the global trucking industry.
- Meanwhile, shares of biotech firm Cepheid (Nasdaq: CPHD) rallied more than 48% after the firm announced plans to sell itself to Danaher Corp. (NYSE: DHR) for $4 billion. And the deals keep coming. Finally, shares of Spectra Energy Corp. (NYSE: SE) jumped more than 5% after announcing plans to merge with Enbridge Energy Partners (NYSE: EEP). The deal would be valued at roughly $127 billion, making it one of the largest energy infrastructure firms in North America.
- Shares of Apple Inc. (Nasdaq: AAPL) were gaining after CEO Tim Cook criticized the European Commission's ruling that his firm must pay roughly $14.5 billion in unpaid taxes and penalties. Cook said Apple plans to repatriate billions of dollars back to the United States in 2016. He also dubbed the EU ruling "total political crap." Despite this ruling, Apple is one of the best and most profitable companies in the world. Here's why we are ranking AAPL stock a "Buy."
- Look for additional earnings reports today from Dave & Buster's Entertainment Inc. (Nasdaq: PLAY), Casey's General Stores (Nasdaq: CASY), Korn/Ferry International (NYSE: KFY), and TiVo Inc. (Nasdaq: TIVO).
- Finally, if you want to make money in this market, you need to know about stocks we like to call "Glocals." These stocks capture upside growth and provide strong dividends due to their remarkable cash flows. And one Glocal that has already provided Money Morning readers with a 360% return is poised for even greater gains. Check it out, right here.
Today's U.S. Economic Calendar (all times EDT)
- Gallup US Consumer Spending Measure at 8:30 a.m.
- PMI Services Index at 9:45 a.m.
- ISM Non-Manufacturing Index at 10 a.m.
- Labor Market Conditions Index at 10 a.m.
- 4-Week Bill Auction at 11:30 a.m.
- 3-Month Bill Auction at 11:30 a.m.
- 6-Month Bill Auction at 11:30 a.m.
- TD Ameritrade IMX at 12:30 p.m.
- Gallup US ECI at 2 p.m.
- San Francisco Federal Reserve President John Williams speaks at 8:30 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.