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This morning, the Dow Jones Industrial Average was trending downward ahead of a busy day of key economic data.
Today, investors are keeping a close eye on the Consumer Price Index, which provides an understanding of inflation in the U.S. economy.
With inflation figures in focus, expect more speculation over the timing of the next interest rate hike. The Fed Open Market Committee will meet next week to discuss monetary policy and a possible tightening of interest rates in 2016.
The markets have largely dismissed a rate hike; however, the Fed might just be crazy enough to do it. Here's when we expect the next rate hike.
On Thursday, the Dow rallied 177 points thanks to a strong surge in technology and energy stocks.
Investors were mainly rallying around Apple Inc. (Nasdaq: AAPL) stock, which rose more than 3.3% to a 2016 high on news that the company has sold out of its iPhone 7 Plus.
Thursday's Stock Market Numbers:
Dow Jones: 18,212.48; +177.71; 0.99%
S&P 500: 2,147.26; +21.49; 1.01%
Nasdaq: 5,249.69; +75.92; 1.47%
What's Ahead for the Dow Jones Industrial Average Today
The Dow Jones Industrial Average projected a 53-point slide ahead of today's schedule of economic data that includes monthly CPI and consumer sentiment updates.
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Oil prices were falling today on concerns about a growing supply glut in the global markets. The WTI crude oil price dipped 1.6%. Meanwhile, the Brent crude oil price fell 1.4%. Investors will be looking for the weekly U.S. rig count report from Baker Hughes Inc. (NYSE: BHI) later this afternoon. Last week's report revealed that the United States added seven oil rigs, bringing the domestic total to 414. That's the highest production count since February 2016.
Overall, supply is on the rise in troubled countries like Nigeria and Libya, while Iran has shown that its approaching output levels not seen since before the West imposed economic sanctions on the country.
Money Morning Global Energy Strategist Dr. Kent Moors has just issued his latest oil price prediction. But before we get to that, here's why crude oil prices have been so volatile this week.
But the big news this morning was happening at Oracle Corp. (NYSE: ORCL). The software giant's stock was off this morning by 2.7% after it reported weak quarterly earnings. The firm reported earnings per share (EPS) of $0.55, which missed expectations of $0.58.
Stocks to Watch Today, Sept. 16, 2016
- Shares of Deutsche Bank AG (NYSE: DB) were off more than 8.5% this morning on news that the bank has been asked by the U.S. government to settle allegations that it misled investors on mortgage-backed securities. The company says it will fight the demand from the U.S. for $14 billion to settle the claims. Once again, we're watching the horrible cycle that allows Wall Street the opportunity to mislead and take money from customers, only to see the complacent U.S. government come in later for its cut of the profits. Money Morning Capital Wave Strategist Shah Gilani highlights a series of wrist slaps from U.S. regulators while no one goes to jail for any of these crimes. Here's his latest take.
- Keep an eye again on Apple Inc. (Nasdaq: AAPL) stock. The company's stock has been surging in recent sessions on news that the company's iPhone 7 pre-order sales have been rising at a breakneck pace. It could only get better today as the device goes on sale in stores around the country, although supplies are expected to be extremely limited. Here's where we see AAPL stock going from here.
- On the deal front, Unilever Plc. (NYSE ADR: UL) is considering a $1 billion deal for the consumer products company co-founded by actress Jessica Alba. The firm is looking to Honest Co., which has received $200 million from investors since 2011. The company recently received a $1.7 billion valuation during its last round of financing.
- On the earnings front, the cupboard is bare. No major U.S. firms report earnings on Friday. Come back on Monday when Ascena Retail Group Inc. (Nasdaq: ASNA) reports fiscal fourth-quarter earnings numbers.
Today's U.S. Economic Calendar (all times EDT)
- Consumer Price Index at 8:30 a.m.
- Consumer Sentiment at 10 a.m.
- Baker Hughes Inc. Rig Count at 1 p.m.
- Treasury International Capital at 4 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.