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The Dow Jones Industrial Average rallied thanks to a surge in biotech stocks on Monday.
Meanwhile, expectations for a rate hike in September lowered as traders digested comments from several U.S. Federal Reserve officials.
This morning, Atlanta Federal Reserve Bank President Dennis Lockhart said that the central bank should have a "serious discussion" about a rate hike this month. However, he said that the Fed didn't need to act with any urgency given the current state of the U.S. economy.
With the Fed in focus, Money Morning Capital Wave Strategist Shah Gilani says that market volatility is on the verge of roaring back in September. Check out what he has to say, right here.
Let's look at the final numbers on Monday for the Dow, S&P 500, and Nasdaq:
Dow Jones: 18,325.07; +239.62, +1.32%
S&P 500: 2,159.04; +31.23; +1.47%
Nasdaq: 5,211.89; +85.98; +1.68%
Here's a look at today's most important market events.
DJIA Today: Biotech Bump Pushes Dow Higher, Oil Prices Remain Flat
The Dow Jones gained more than 239 points as expectations of a September interest rate hike faded. The never-ending chatter about interest rates continues to dominate the narrative about the markets today. This afternoon, Federal Reserve Governor Lael Brainard said that the central bank should keep monetary policy loose despite improving signs in the U.S. economy.
Oil prices were higher on Monday thanks to weakness in the U.S. dollar. Investors are also still weighing Friday's report by Baker Hughes Inc. (NYSE: BHI) that the U.S. rig count increased for the 10th straight week. The WTI crude oil price today gained 0.4%. Meanwhile, the Brent crude oil price added 0.3%.
But the big news today was the health of Democratic presidential candidate Hillary Clinton. On Monday, the political and financial media were asking, "Will Hillary Clinton drop out of the presidential race?" Clinton was recently diagnosed with pneumonia and appeared to collapse during a 9/11 memorial ceremony in New York City over the weekend. According to reports, Democrats are nervous about Clinton's health, prompting speculation about the future of her candidacy. Here's the latest on Clinton's health scare and what to expect during the 2016 election.
Top Stock Market News Today, Sept. 12, 2016
- Shares of Perrigo Co. (NYSE: PRGO) climbed more than 5% on news activist hedge fund Starboard Value has taken a large stake in the biotech firm. The hedge fund argues that the firm must improve its operations in order to boost shareholder value.
- Shares of Tesla Motors Inc. (Nasdaq: TSLA) were in focus after the firm announced plans to improve its Autopilot features. The National Highway Traffic Safety Administration has been investigating the crash of a semi-autonomous vehicle where a driver was killed. CEO Elon Musk says that Tesla has made a "massive enhancement" in its vehicle system and that it will be "making much more effective use of radar." TSLA stock is off more than 13% in the last month. But while some investors are panicking, we view this TSLA stock price drop as a great buying opportunity. Here's why.
- The mega-industrial gas deal is off. According to Reuters, German gas conglomerate Linde AG (ETR: LIN) and its American rival Praxair Inc. (NYSE: PX) have called off talks of a $60 billion merger. The firms failed to determine where it would establish its headquarters after a merger and which management team would run the organization. Shares of Praxair gained more than 1.4% on the news.
- It was a great day for investors of Wal-Mart Stores Inc. (NYSE: WMT). Shares of WMT stock gained more than 2.3% after the stock received an upgrade from investment firm Cowen and Co.
Tuesday's U.S. Economic Calendar (all times EDT)
- NFIB Small Business Optimism Index at 6 a.m.
- Redbook at 8:55 a.m.
- 4-Week Bill Auction at 11:30 a.m.
- 52-Week Bill Auction at 11:30 a.m.
- 30-Year Bond Auction at 1 p.m.
- Treasury Budget at 2 p.m.
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.