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This morning, the Dow Jones Industrial Average was sliding as investors weigh a massive announcement on oil prices from Algeria.
Also, keep an eye on developments at Deutsche Bank AG (USA) (NYSE: DB). The German investment bank could require a bailout to pay the U.S. government over a mortgage-backed securities settlement.
Banks like Deutsche Bank are bringing the global economy back to the edge.
It could be 2008 all over again.
On Wednesday, the Dow rallied more than 110 points after OPEC reached a deal to cap production to support crude oil prices.
Meanwhile, Janet Yellen told the House Financial Services Committee that there was no timetable for the next interest rate hike.
Wednesday's Stock Market Numbers
Dow Jones: 18,339.24; 110.94; 0.61%
S&P 500: 2,171.37; 11.44; 0.53%
Nasdaq: 5,318.55; 12.84; 0.24%
What's Ahead for the Dow Jones Industrial Average Today
The Dow Jones Industrial Average projected a 27-point decline this morning as investors weigh a major crude production deal by the world's largest oil cartel.
Trending News: Something Was Missing from Monday Night's Debate
Oil prices were retreating despite news of a deal among OPEC suppliers to cap production in order to support crude levels. This is the global oil cartel's first production deal since 2008, although details remain slightly hazy right now. Overall, OPEC will slash production to roughly 32 million to 33 million barrels per day. News of the deal sent crude prices soaring on Wednesday, as much as 6%. This morning, however, crude is retreating as traders calculate the probability that OPEC producers follow through on their commitment.
Goldman Sachs Group Inc. (NYSE: GS) said that the deal could boost crude prices by as much as $10 per barrel. Should the OPEC production cuts be a success by the next OPEC meeting, it may invite non-OPEC rivals like Russia to take part in an extension of this deal. Money Morning Global Energy Strategist Dr. Kent Moors offers his insight on where oil prices are heading after the OPEC deal, right here.
The deal offered a big boost to shares of Brent crude producers. Shares of Royal Dutch Shell Plc. (NYSE ADR: RDS.A) added 1.7% in pre-market hours, while Total SA (NYSE ADR: TOT) gained more than 1.7%.
The WTI crude oil price today slipped 0.4%. Meanwhile, the Brent crude oil price fell 0.8% in pre-market hours.
Activist investor Carl Icahn is back in the news today. The billionaire money manager is slashing his stakes in energy-related investments. The latest sell-off is Transocean Ltd. (NYSE: RIG). Icahn cut his stake in the oil field services giant from 5.9% to 1.5%, a move that sent RIG stock down 2.5%. Icahn has also slashed his stake in embattled natural gas giant Chesapeake Energy Corp. (NYSE: CHK), which saw shares fall nearly 6% in early trading.
But the big story today is at Yahoo! Inc. (Nasdaq: YHOO). CEO Marissa Mayer is under fire after a scathing piece in The New York Times profiles employees who say she is responsible for the massive data breach that compromised 500 million accounts. The employees said that Mayer frequently clashed with the firm's internal security team over the costs of cybersecurity defenses. According to the report, Mayer placed a higher emphasis on the design of Yahoo Mail than she did on investing in security improvements.
Stocks to Watch Today, Sept. 29, 2016
- Wells Fargo & Co. (NYSE: WFC) is back in focus today as CEO John Stumpf returns to Washington to testify before the House Financial Services Committee. Stumpf has been under pressure to resign due to the massive scandal at the bank over its sales practices. According to reports, the CEO has already forfeited $41 million in bonuses and stock options, although some critics argue this is not enough.
- On the earnings front, shares of PepsiCo Inc. (NYSE: PEP) gained more than 3% after the soft drink giant topped Wall Street profit and revenue expectations. The company also announced it has hiked its full-year outlook thanks to demand in its snacks businesses.
- Keep an eye out for additional earnings reports from Costco Wholesale Corp. (Nasdaq: COST), Accenture Plc. (NYSE: ACN), ConAgra Foods Inc. (NYSE: CAG), CalAmp Corp. (Nasdaq: CAMP), and Cantel Medical Corp. (NYSE: CMN).
Today's U.S. Economic Calendar (all times EDT)
- Philadelphia Federal Reserve Bank President Patrick Harker speaks at 5 a.m.
- GDP at 8:30 a.m.
- International Trade in Goods at 8:30 a.m.
- Jobless Claims at 8:30 a.m.
- Corporate Profits at 8:30 a.m.
- Atlanta Fed President Dennis Lockhart speaks at 8:50 a.m.
- Bloomberg Consumer Comfort Index at 9:45 a.m.
- Federal Reserve Board Governor Jerome Powell speaks at 10 a.m.
- Pending Home Sales Index at 10 a.m.
- EIA Natural Gas Report at 10:30 a.m.
- 3-Month Bill Announcement at 11 a.m.
- 6-Month Bill Announcement at 11 a.m.
- Minneapolis Fed President Neel Kashkari speaks at 2:30 p.m.
- Farm Prices at 3 p.m.
- Kansas City Federal Reserve Bank President Esther George speaks at 4:15 p.m.
- Fed Balance Sheet at 4:30 p.m.
- Money Supply at 4:30 p.m.
- Federal Reserve Chair Janet Yellen speaks at 5:10 p.m.
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About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.