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The Dow Jones Industrial Average today is down as investors focus on the presidential election and the upcoming meeting among OPEC suppliers.
The global oil cartel is set to discuss production levels and oil prices over several days in Algeria. As we explained last week, the markets shouldn't anticipate a deal due to geopolitical tensions between Saudi Arabia and Iran.
However, Money Morning Global Energy Strategist Dr. Kent Moors projects that a deal will eventually happen. Here's when and why.
Today, the markets are also speculating on the timing of the next interest rate hike after the U.S. Federal Reserve voted to leave interest rates unchanged during its September meeting.
Here's what happened at the FOMC meeting last week and what it means for your money.
On Friday, the Dow fell more than 130 points as investors lost hope for a production freeze by OPEC.
Friday's Stock Market Numbers:
Dow Jones: 18,261.65; -130.81; -0.71%
S&P 500: 2,164.71; -12.48; -0.57%
Nasdaq: 5,305.75; -33.78; -0.63%
What's Ahead for the Dow Jones Industrial Average Today
The Dow Jones Industrial Average projects an 85-point decline at the opening bell.
Investors are keeping a close eye on statements from members of the U.S. Federal Reserve. But more important – traders are weary about last week's announcement by the Bank of Japan that the central bank will hold its benchmark interest rate in negative territory. As we explain, this is just the latest stock market correction signal. The Bank of Japan is operating dangerously as record low interest rates have forced investors to seek returns in an overheated stock market.
We're going to explain this policy today, and once we do, you'll see why a stock market correction is due.
Oil prices were pushing higher this morning as energy officials from OPEC meet in Algeria.
The WTI crude oil price today added 1.7%. Meanwhile, the Brent crude oil price added 1.5%.
But the big story today is the first U.S. presidential debate. GOP nominee Donald Trump and Democratic nominee Hillary Clinton will face off for 90 minutes tonight. Experts project that this could be the most-watched debate in election history. The two candidates will debate issues on the economy, terrorism, immigration, and – of course – Clinton's email server. But one of the most important topics will center on the Syrian refugee crisis. Here's what to expect from both candidates on the issue and why it matters to the global economy.
Stocks to Watch Today, Sept. 26, 2016
- Shares of Twitter Inc. (NYSE: TWTR) are in focus on news that the company could be purchased. Shares are off 2.2% as investors speculate on potential suitors for the microblogging company. Names of possible buyers include Salesforce.com Inc. (NYSE: CRM) and Alphabet Inc. (Nasdaq: GOOGL).
- Yahoo! Inc. (Nasdaq: YHOO) is under renewed pressure after the firm has been the victim of one of the the largest cyber breaches in history. Yahoo said that data "associated with at least 500 million user accounts" has been compromised.
- Apple Inc. (Nasdaq: AAPL) fell more than 1.1%. On Friday, GFK issued concerns about the company's iPhone 7 sales. That report fueled a slight downturn in AAPL stock. Shares of AAPL stock were off more than 0.9% in pre-market hours.
- Wells Fargo & Co. (NYSE: WFC) shares are in focus again as calls have increased for company CEO John Stumpf to resign. The company is facing multiple investigations tied to a massive scam that bilked its customers out of millions of dollars. Even if Stumpf walks away in shame, CNN Money reports that he will depart with $200 million in compensation. It is unlikely that claw-back provisions will be able to prevent Stumpf from accessing this compensation.
- On the earnings front, shares of Cal-Maine Foods Inc. (Nasdaq: CALM) fell more than 4% after the company badly missed fiscal first-quarter earnings and revenue expectations. The firm reported a quarterly earnings per share (EPS) loss of $0.64, where Wall Street expected a $0.01 gain. Meanwhile, the firm fell well short of its revenue projections of $297.1 million.
- Keep an eye out for additional earnings reports from Carnival Corp. (NYSE: CCL), Vail Resorts Inc. (NYSE: MTN), SYNNEX Corp. (NYSE: SNX), and Thor Industries Inc. (NYSE: THO).
Today's U.S. Economic Calendar (all times EDT)
- Minneapolis Federal Reserve President Neel Kashkari speaks at 9:30 a.m.
- New Home Sales at 10 a.m.
- Dallas Fed Manufacturing Survey at 10:30 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.
- 2-Year Note Auction at 1 p.m.
- Dallas Federal Reserve Bank President Robert Kaplan speaks at 1:30 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.