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This morning, the Dow Jones Industrial Average was slumping as traders continue to speculate on the timing of the next rate hike by the Fed.
Investors are still speculating on the timing of the next interest rate hike after Federal Reserve Governor Lael Brainard said that the central bank should keep monetary policy loose despite improving signs in the U.S. economy. Here's when we expect the next rate hike.
With the FOMC set to meet next week, markets remain gridlocked by the Fed's planning on monetary policy.
On Monday, the Dow gained more than 239 points. Biotech stocks rallied on news that activist hedge fund Starboard Value has taken a large stake in Perrigo Co. (NYSE: PRGO).
Monday's Stock Market Numbers:
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%
What's Ahead for the Dow Jones Industrial Average Today
The Dow Jones Industrial Average projected a 106-point decline as investors weighed falling oil prices and renewed speculation over the timing of the next interest rate hike by the Federal Reserve.
Oil prices were falling fast this morning after a troubling report from the International Energy Agency (IEA). The global energy watchdog projected a sharp decline in international demand in the year ahead. The IEA says it anticipates oversupply in the market the first six months of 2017. That cuts into previous forecasts and expectations that anticipated greater balance in the markets toward the end of this year. The silver lining is that today's report could place greater pressure on OPEC and Russia to cooperate on supporting oil prices when the global oil cartel meets this month to discuss its production targets.
This morning, the WTI crude price was off 2.1%, while Brent crude fell 1.6%.
However, the big news this morning is the presidential election. Over the weekend, Hillary Clinton experienced a health scare, igniting speculation that she may have to drop out of the race. Now, the race is tightening, putting GOP candidate Donald Trump in focus as the presidential debates approach. Of course, what really matters is the impact of a Trump presidency on the stock market. Outspoken billionaire Mark Cuban says the markets will tank if Trump wins the election. Do you agree with him?
Stocks to Watch Today, Sept. 13, 2016
- Shares of Wells Fargo & Co. (NYSE: WFC) were off nearly 1% after the company announced it will eliminate sales goals for its retail banking outlets. The firm also said it will increase oversight and training as the U.S. Senate Banking Committee investigates its sales practices. The firm is under scrutiny after it fired more than 5,000 employees who opened more than 1 million fake accounts and subjected customers to phantom fees. Wells Fargo agreed to pay $185 million to settle the case with the CFPB this month.
- The electric vehicle wars are heading up. This morning, General Motors Co. (NYSE: GM) announced that its new Chevy Bolt will travel 238 miles on one charge. That's higher than the 210 miles offered from the Model S, which is produced by Tesla Motors Inc. (Nasdaq: TSLA). In the long run, we argue that TSLA stock is the stock to own given its innovation and the significant changes it has forced on the auto industry.
- Shares of Weight Watchers International Inc. (NYSE: WTW) were falling this morning after the firm's CEO James Chambers announced plans to resign. The company will now turn to a search committee that includes Oprah Winfrey to find a new chief executive.
- If you're looking for earnings reports, we have some bad news. No major U.S. company will report earnings on Tuesday. Check in on Wednesday when Cracker Barrel Old Country Store Inc. (Nasdaq: CBRL) and CLARCOR Inc. (NYSE: CLC) report earnings.
Today'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.