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This morning, the Dow Jones Industrial Average was climbing higher as investors keep an eye on interest rates.
With the Fed Open Market Committee set to kick off its September monetary policy meeting on Tuesday, investors are speculating on the possibility of the central bank raising interest rates.
According to CME FedWatch, the probability of a rate hike sits at just 12%.
The odds of a hike in December now sit at 55%. Of course, Money Morning has been covering the Fed's policy plans ahead of the meeting, and we offer insight on when you can actually expect the Fed to raise interest rates.
On Friday, the Dow slumped 88 points, fueled by a sharp slump in financial stocks. Today, investors weighed another major scandal and expected settlement from Deutsche Bank AG (USA) (NYSE: DB).
Friday's Stock Market Numbers:
Dow Jones: 18,123.52; -88.96; -0.49%
S&P 500: 2,139.16; -8.10; -0.38%
Nasdaq: 5,244.57; -5.12; -0.10%
What's Ahead for the Dow Jones Industrial Average Today
The Dow Jones Industrial Average projected an 89-point gain as oil prices tick higher and investors anticipated that the Fed will wait until December to make any move on interest rates.
Oil prices were ticking higher on hopes that OPEC and non-OPEC producers will engage in a deal to stabilize global output. Venezuelan President – an economic illiterate – Nicolas Maduro said that a deal could be struck in the next month. Meanwhile, geopolitical pressures in Libya continue to push oil prices higher as traders worry that ongoing clashes could disrupt crude exports.
The WTI crude oil price today added 1.3%. Meanwhile, the Brent crude oil price gained 1.2%.
On Friday, Baker Hughes Inc. (NYSE: BHI) reported that the U.S. domestic rig count has increased in 11 of the last 12 weeks. The company reported that the number of rigs increased last week by two platforms.
Money Morning will be keeping a close eye on Goldman Sachs Group Inc.'s (NYSE: GS) annual Communacopia Conference, which kicks off tomorrow in New York. The event is important as we'll be dissecting CEO presentations from companies like AT&T Inc. (NYSE: T), Comcast Corp. (Nasdaq: CMCSA), CBS Corp. (NYSE: CBS), Walt Disney Co. (NYSE: DIS), and Twenty-First Century Fox Inc. (Nasdaq: FOXA). Stay tuned.
But the big news this morning is the 2016 presidential election. You know the major themes of the upcoming debates: immigration, terrorism, America's aging infrastructure, the FBI investigation of Hillary Clinton's email practices, and the economy. But there's one story that always seems to be missing from the mainstream media: how you can profit in the year ahead. Money Morning Executive Editor Bill Patalon explains the clues you should look for during the upcoming debate and what it means for your money. Read his latest column, right here.
Stocks to Watch Today, Sept. 19, 2016
- Shares of Twitter Inc. (NYSE: TWTR) are in focus after Bloomberg reported that a shareholder has sued the company over its failure to top 500 million users. The lawsuit claims that the company misled investors in November 2014 over its growth prospects. The suit is recruiting shareholders who purchased the stock between Feb. 6, 2015, and July 28, 2015.
- Keep an eye on shares of Tiffany & Co. (NYSE: TIF). The company is engaged in a trademark lawsuit against Costco Wholesale Corp. (Nasdaq: COST). According to Reuters, Costco infringed on the jeweler's trademark by selling counterfeit diamond earrings with Tiffany's name on them.
- Banking scandals are all the rage these days. On Friday, Deutsche Bank AG (USA) (NYSE: DB) saw shares fall more than 9.4% after the U.S. government offered a settlement to the world's largest banking firm (by assets under management). The $14 billion offer over the firm's misleading of clients on mortgage-back securities rocked the financial sector.
- On the deal front, Johnson & Johnson (NYSE: JNJ) announced plans to purchase the eye-health division of Abbott Laboratories (NYSE: ABT) for roughly $4.3 billion in cash. This is the latest deal in the vision health sector as competition heats up. Shares of ABT stock have been rising on news of the deal.
- On the earnings front, look for a report from Ascena Retail Group Inc. (Nasdaq: ASNA).
Today's U.S. Economic Calendar (all times EDT)
- Housing Market Index at 10 a.m.
- 4-Week Bill Announcement at 11 a.m.
- 3-Month Bill Auction at 11:30 a.m.
- 6-Month Bill Auction at 11:30 a.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.