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The Dow Jones Industrial Average today rallied after Deutsche Bank AG (USA) (NYSE: DB) CEO John Cryan reassured investors that the German mega-bank was stable as it prepares to reach a settlement with the Department of Justice. Shares of DB stock rallied 13% on the day. The statement comes not long after German Chancellor Angela Merkel announced that the country will not offer the institution a bailout should it face liquidity problems. On Friday, the CBOE Volatility Index (VIX) - the market's fear gauge - fell more than 7.5%.
We expect volatility to heat up next month. That's why our list for the best stocks to buy in October 2016 emphasizes quality companies that can survive a volatile market. Before we get started on today's news, check out the three best stocks to buy in October, right here.
Let's look at the final numbers on Friday for the Dow, S&P 500, and Nasdaq:
Dow Jones: 18,308.15; 164.70; 0.91%
S&P 500: 2,168.27; 17.14; 0.80%
Nasdaq: 5,312.00; 42.85; 0.81%
Here's a look at today's most important market events and stocks, plus a preview of Monday's economic calendar.
DJIA Today: Financial Stocks Rally on DB Stability Reassurance
The Dow Jones gained more than 164 points on Friday as financial stocks rebounded from yesterday's slump. Shares of JPMorgan Chase & Co. (NYSE: JPM), Bank of America Corp. (NYSE: BAC), and Citigroup Inc. (NYSE: C) all gained more than 1.2% after Deutsche Bank leadership assured investors that the company wouldn't face a liquidity crisis.
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But don't think that the company's problems are over. Since February, Money Morning Global Credit Strategist Michael Lewitt has called Deutsche Bank the "proverbial canary in the coal mine of the global financial system." In fact, Lewitt has been helping investors make big gains by shorting the embattled firm. Here's how Lewitt earned investors 166% recently on DB puts and how you can stand to make a lot more when DB stock craters to even worse all-time lows.
Stocks largely ignored news that the Atlanta Federal Reserve has cut its third-quarter GDP target to 2.4%. That's important because it signifies that the United States is unlikely to top 3% in one quarter for the 31st consecutive quarter of the Obama presidency.
Shares of Amazon.com Inc. (Nasdaq: AMZN) hit an all-time high on Friday thanks to another lofty price target from an investment research firm. Guggenheim initiated coverage on the e-commerce giant, issued a "Buy" rating, and set a price target of $950 per share. AMZN has been on a tear over the last nine months, adding 23% to date.
The price of crude oil today was swinging back and forth into positive and negative territory. Traders took some profits off the table after OPEC announced a deal to cap production in November. Baker Hughes Inc. (NYSE: BHI) announced that the U.S. rig count increased for the 13th time in 14 weeks. The United States added seven rigs last week, bringing the total to 425.
The WTI crude oil price today gained 0.5%. Meanwhile, the Brent crude oil price fell 0.3%.
Top Stock Market News Today, Sept. 30, 2016
- McCormick & Co. Inc. (NYSE: MKC) was the only major U.S. company to report earnings on Friday. MKC shares added more than 2.7% after the firm topped Wall Street earnings expectations of $0.95 share on top of $1.08 billion in revenue.
- On the deal front, NXP Semiconductors NV (Nasdaq: NXPI) gained another 7% on news that Qualcomm Inc. (Nasdaq: QCOM) is considering deal for its rival. While no company has commented on the deal, The Wall Street Journal reported on Thursday that the two could strike merger within the next two months valued at $30 billion. Both stocks have rallied in consecutive sessions. QCOM added 2.5% on Friday, aided by an upgrade from investment firm Mizuho and a price target of $75 per share.
- Shares of Cognizant Technology Solutions Corp. (Nasdaq: CTSH) fell more than 14% after the company announced an internal review of its business practices in India. The company is exploring whether it violated Federal anticorruption practices. The stock was today's worst performer from the S&P 500.
- Shares of Nutanix (Nasdaq: NTNX) surged more than 112% during the enterprise-infrastructure firm's first day of public trading. Shares had been priced at $16 on Thursday night, higher than its initial range of $11 to $13 per share.
- Next week, Alcoa Inc. (NYSE: AA) will unofficially kick off earnings season. In addition, investors will be watching shares of Ford Motor Co. (NYSE: F) and General Motors Co. (NYSE: GM). With volatility heating up this month, investors need to read our list for the best stocks to buy in October 2016. Check out the three best stocks to buy in October, right here.
Monday's U.S. Economic Calendar (all times EDT)
- Gallup US Consumer Spending Measure at 8:30 a.m.
- PMI Manufacturing Index at 9:45 a.m.
- ISM Manufacturing Index at 10 a.m.
- Construction Spending 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.