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This morning, the Dow Jones Industrial Average was ticking downward as investors continue to weigh the Federal Reserve's decision on interest rates.
On Wednesday, the Dow rallied 124 points after the U.S. Federal Reserve voted to keep interest rates unchanged this month. Markets are raising expectations that the Fed will increase rates in December.
Money Morning Capital Wave Strategist Shah Gilani told Stuart Varney that he believes there will be a rate hike in 2016. If you've been asking, "When will the Fed raise rates," watch this video to find out.
Oil prices were also pushing higher after a surprise decline in crude inventories.
Wednesday's Stock Market Numbers:
Dow Jones: 18,293.50; 163.54; 0.90%
S&P 500: 2,163.10; 23.34; 1.09%
Nasdaq: 5,295.18; 53.83; 1.03%
What's Ahead for the Dow Jones Industrial Average Today
The Dow Jones Industrial Average projected a 22-point decline after the U.S. central bank announced that it would not touch interest rates in September.
Trending: The War on Cash Is Still Good for Gold
Fed Chair Janet Yellen said that the case for a rate hike has improved. Yellen said that economic growth has picked up and labor markets have improved. However, Yellen has raised some concerns about productivity in the economy. In addition, three members of the Federal Reserve dissented from the FOMC decision to not raise rates, a rare event for the central bank.
Yesterday, the Bank of Japan (BoJ) kept its 10-year interest rate at zero as the nation tries desperately to spur economic growth. The BoJ is holding off on taking its deposit rate further into negative territory. There may be a day in the future when the Federal Reserve embraces negative rates as well. If that happens, here's how to protect your money against negative interest rates.
Oil prices climbed higher after a surprise downturn in U.S. crude inventory levels. The price of crude oil is also soaring thanks to a strike in Norway, which has endangered North Sea output.
The WTI crude oil price today added 1%. Meanwhile, the Brent crude oil price gained 0.9%. Here's more on why the price of oil was soaring on Wednesday.
Stocks to Watch Today, Sept. 22, 2016
- Shares of Mylan NV (Nasdaq: MYL) were ticking higher despite the grilling that the company's CEO took on Capitol Hill yesterday. An oversight committee grilled CEO Heather Bresch over the price hike for the EpiPen treatment. Since 2007, the cost of two Epipen devices has increased from $100 to $600. Bresch said that the company is not making a profit on the product.
- Microsoft Corp. (Nasdaq: MSFT) is generating headlines after it announced a $40 billion stock buyback plan. This deal, when completed, would repurchase about 9% of the tech giant's outstanding shares. While that sort of optimism might get some investors excited about investing in MSFT stock, they're ignoring an even bigger trend that will shoot the company's profits higher than ever. Here's why MSFT stock is a screaming buy.
- Apple Inc. (Nasdaq: AAPL) generated a lot of buzz on Wednesday after the Financial Times reported that the technology giant was considering a deal to purchase sports car manufacturer McLaren. The auto company denied the rumors, but it reignited speculation that Apple is looking to move into the sector.
- Look for additional earnings report from AutoZone Inc. (NYSE: AZO), Rite Aid Corp. (NYSE: RAD), TiVo Inc. (Nasdaq: TIVO), AAR Corp. (NYSE: AIR), and Scholastic Corp. (Nasdaq: SCHL).
Today's U.S. Economic Calendar (all times EDT)
- Jobless Claims at 8:30 a.m.
- Chicago Fed National Activity Index at 8:30 a.m.
- FHFA House Price Index at 9 a.m.
- Bloomberg Consumer Comfort Index at 9:45 a.m.
- Existing Home Sales at 10 a.m.
- Leading Indicators at 10 a.m.
- EIA Natural Gas Report at 10:30 a.m.
- Kansas City Fed Manufacturing Index at 11 a.m.
- 3-Month Bill Announcement at 11 a.m.
- 6-Month Bill Announcement at 11 a.m.
- 2-Year FRN Note Announcement at 10 a.m.
- 2-Year Note Announcement at 11 a.m.
- 5-Year Note Announcement at 11 a.m.
- 7-Year Note Announcement at 11 a.m.
- 10-Year TIPS Auction at 1 p.m.
- Fed Balance Sheet at 4:30 p.m.
- Money Supply at 4:30 p.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.