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This morning, the Dow Jones Industrial Average is on the move as investors await the start of the September Fed Open Market Committee (FOMC) meeting.
The Fed is set to discuss whether the U.S. economy is strong enough for an interest rate hike.
The FOMC has largely held the markets hostage over the last 12 months with continued speculation over the timing of the next rate hike.
Expectations for a September a rate hike have faded.
On Monday, the Dow dropped three points as investors waited for potential rate changes from the Federal Reserve and the Bank of Japan. Both central banks will offer updates on monetary policy tomorrow afternoon.
One of the most important things to look for tomorrow: the Fed dot plot. Read about what it is, and why it matters, right here.
Monday's Stock Market Numbers:
Dow Jones: 18,120.17; -3.63; -0.02%
S&P 500: 2,139.12; -0.04; -0.00%
Nasdaq: 5,235.03; -9.54; -0.18%
What's Ahead for the Dow Jones Industrial Average Today
The Dow Jones Industrial Average projected 22-point gain as the Fed kicks off its two-day meeting on monetary policy. As we've explained, it's unlikely that the Fed will raise rates given the fragility of the U.S. economy. But that won't stop speculation well into Wednesday afternoon.
The Bank of Japan may cut its interest rate further into negative territory as the nation tries desperately to spur economic growth. There may be a day in the future when the Federal Reserve embraces negative rates as well. Money Morning Chief Investment Strategist Keith Fitz-Gerald explains that the lunatics are running the asylum, and everyone's money is at risk. But you can protect yourself and profit from this nonsense.
Oil prices had been pushing higher since Venezuelan President Nicolas Maduro said that OPEC and other major energy producers could establish a deal to support crude prices. However, the nation's Oil Minister Eulogio Del Pino said late Monday that global supplies will need to retreat by at least 10% in order to match consumption demand.
The WTI crude oil price today fell 0.6%. Meanwhile, the Brent crude oil price dipped 0.3%.
Today, keep an eye on the Goldman Sachs Group Inc. (NYSE: GS) annual Communacopia Conference, which kicks off today in New York. Expect presentations from the CEOs of 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).
But the big news today is rate hike speculation. While the mainstream press rambles on about the Fed and monetary policy, Money Morning is here to help you make money. If the U.S. Federal Reserve does agree to finally raise rates and actually sets a date to do so, then these three industries stand to gain the most.
Stocks to Watch Today, Sept. 20, 2016
- Shares of GoPro Inc. (Nasdaq: GPRO) are in focus after a huge performance on Monday. The GoPro stock price jumped more than 6% yesterday, bringing its weekly gain to nearly 20%. But we're not buying this GoPro stock price rally. Here's why investors should avoid GoPro stock at all costs.
- Shares of Apple Inc. (Nasdaq: AAPL) are under pressure after Consumer Reports panned the new cameras on the iPhone 7. The magazine reviewed the new devices and said that the camera technology was no better than previous models of Apple's iconic smartphone. AAPL stock is still a bargain, and it surged more than 11% last week.
- Banking scandals continue to dominate the news, but none has been bigger this month than the one at Wells Fargo & Co. (NYSE: WFC). Yesterday, the company announced that it has replaced the executive in charge of its monitoring division that missed a massive scam at the firm. The company placed its chief risk officer on a mandatory six-month leave. The Senate Banking Committee also said it will ask WFC CEO John Stumpf to testify about his company's culture and practices. The "too big to fail" bank recently settled with regulators and fired more than 5,300 employees over alleged fraud. Money Morning Capital Wave Strategist Shah Gilani wasn't surprised at all by this scam, and he doesn't expect that anyone will go to prison or lose their bonuses. In fact, it's just business as usual on Wall Street. Here's Gilani's latest insight into why scams like these are always the norm for the financial elite.
- On the earnings front, look for reports from Adobe Systems Inc. (Nasdaq: ADBE), FedEx Corp. (NYSE: FDX), Lennar Corp. (NYSE: LEN), and KB Home (NYSE: KBH).
Today's U.S. Economic Calendar (all times EDT)
- Housing Starts at 8:30 a.m.
- Redbook at 8:55 a.m.
- 4-Week 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.