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This morning, the Dow Jones Industrial Average projected a small decline as investors settle in for the start of earnings season.
Aside from earnings, the markets are keeping a close eye on the European banking sector and Federal Reserve.
Though the central bank elected to keep interest rates unchanged during its September meeting, the prospect of an increase is on the horizon. Money Morning contributor Tom Gentile explains that even though a rate hike is likely in December, you can still find ways to profit.
On Friday, the Dow gained more than 164 points as financial stocks rebounded thanks to news that Deutsche Bank AG (USA) (NYSE: DB) had reached a settlement with the U.S. Justice Department.
The German bank's CEO said that the company would not face any liquidity problems, while analysts said the firm would not require a bailout from German citizens.
Friday's Stock Market Numbers:
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%
What's Ahead for the Dow Jones Industrial Average Today
The Dow Jones Industrial Average projected an 11-point decline as investors prepare for a busy day of economic data and updates on the health of global investment bank Deutsche Bank AG. Keep an eye out for the final September manufacturing PMI figures, ISM manufacturing numbers, and construction spending data. Here's where the markets will go in a busy earnings week.
Oil prices were ticking higher this morning as investors cheered last week's production deal among OPEC producers. The global oil cartel approved a deal that will see producing nations limit their production in November. Here's the latest on the OPEC Algiers meeting.
The WTI crude oil price today gained 1%. Meanwhile, the Brent crude oil price was up 0.9%.
On the deal front, shares of Janus Capital Group Inc. (NYSE: JNS) gained more than 1.5% on news that the firm will merge with the Henderson Group, a British fund management firm. Meanwhile, Shares of Cabelas Inc. (NYSE: CAB) gained more than 16% in pre-market hours on news that the hunting and fishing retail giant will be purchased by Bass Pro Shops.
But the big news this morning is at Wells Fargo & Co. (NYSE: WFC). According to CNN, the state of Illinois plans to pull billions of dollars in business from the bank. Meanwhile, Democratic presidential candidate Hillary Clinton is expected to give a speech today on her new plan to let consumers sue "bad corporate actors." The speech will target Wells Fargo and Mylan NV (NYSE: MYL), which remains under pressure.
Stocks to Watch Today, Oct. 3, 2016
- Things are looking good for Tesla Motors Inc. (Nasdaq: TSLA), which reported earnings and order numbers over the weekend. The electric car giant is on pace to double its sales in 2016 compared to last year. The firm announced that it delivered roughly 24,500 vehicles last quarter. That's a big spike from the 11,603 units sold during the same period in 2015.
- On the earnings front, no major U.S companies will release a quarterly report on Monday. Tomorrow, Alcoa Inc. (NYSE: AA) will unofficially kick off earnings season.
- Finally, if you want to be a smart investor, you need to know what stocks to own. But you also need to know what stocks to avoid. Money Morning has put together a list of stocks on death watch in 2016. This is a list of stocks you must avoid, starting now.
Today'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.
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.