This morning, the Dow Jones Industrial Average was rising as investors await the latest news on Deutsche Bank AG (USA) (NYSE: DB). The DB stock price was climbing in pre-market hours as the company nears a deal with the U.S. government.
Investors will also be looking for clues on the timing of the next interest rate hike today when Federal Reserve officials Jeffrey Lacker and Charles Evans give speeches.
It's also important that you educate yourself on the real problems facing the world today. While Donald Trump and Hillary Clinton jockey for position in the presidential race, it's grown increasingly clear that neither is educated on the real problems in the global finance sector.
Money Morning Global Credit Strategist Michael Lewitt explains just how vulnerable the global markets are to a downturn, and more important, how dangerous the central banks have become.
On Monday, the Dow slipped 54 points after a slew of weak economic data.
Monday's Stock Market Numbers:
Dow Jones: 18,253.78; -54.37; -0.30%
S&P 500: 2,161.20; -7.07; -0.33%
Nasdaq: 5,300.87; -11.13; -0.21%
What's Ahead for the Dow Jones Industrial Average Today
The Dow Jones Industrial Average projected a 25-point gain at the opening bell as earnings season kicks off. Of course, investors will spend most of the week speculating on this Friday's release of the September jobs report.
Trending: How to Profit When Yellen Raises Rates
Oil prices were sliding in pre-market hours after Iranian production figures rattled global sentiment. The WTI crude oil price today fell 0.7%. The Brent crude oil price dipped 0.5%.
In September, Iran produced roughly 2.8 million barrels, matching the levels before Western nations imposed sanctions on the OPEC member. Despite the small downturn, traders anticipate that the pending OPEC deal forged in Algeria will support prices. The Iranian announcement comes at a time that Saudi Arabia is pumping crude at record levels. Money Morning Global Energy Strategist Dr. Kent Moors has called the OPEC deal a game changer.
But as Kent explains, this deal means nothing unless OPEC is able to do this first...
On Monday, Democratic presidential candidate Hillary Clinton ripped into the leadership of investment bank Wells Fargo & Co. (NYSE: WFC). Clinton said the company engaged in "bullying thousands of employees into committing fraud against unsuspecting customers." The statement comes a week after Rep. Maxine Waters called for Congress to break up the bank. In 2015, the bank donated between $100,000 and $250,000 to the Clinton Foundation. In 2011, Wells Fargo gave $200,000 to her husband Bill Clinton for a speech.
Speaking of Hillary Clinton... the big news this morning is about WikiLeaks.
Donald Trump adviser Roger Stone has warned that Democratic presidential candidate Hillary Clinton's run for the White House will soon be "done." He predicts the D-Date will be tomorrow, Oct. 5. Exiled WikiLeaks founder Julian Assange plans to release new documents on the former secretary of state tomorrow. So what does Assange have on Clinton? Read the latest insight on this story, right here.
Stocks to Watch Today, Oct. 4, 2016
- This morning, Darden Restaurants Inc. (NYSE: DRI) rallied 4.5% after the company topped fiscal first-quarter profit expectations and raised its annual outlook. The restaurant giant announced earnings per share (EPS) of $0.88 on top of $1.71 billion. Wall Street had anticipated $0.83 on top of $1.71 billion.
- It will be a busy day in the corporate world. Both WhiteWave Foods Co. (NYSE: WWAV) and Hilton Worldwide Holdings Inc. (NYSE: HLT) will host their annual shareholder meetings.
- Keep an eye on technology giant Alphabet Inc. (Nasdaq: GOOGL). On Tuesday, its Google subsidiary will host a press conference in San Francisco where the company is expected to unveil a number of new products. Analysts are expecting the company will show off two new smartphones designed to compete against the Apple Inc. (Nasdaq: AAPL) iPhone. For months, analysts have speculated on the company's Pixel smartphone.
- Speaking of Google, the company could soon face charges from European regulators for violating antitrust rules. According to The Wall Street Journal, the company could face fines up to 10% of its global annual revenue.
- Look for additional earnings reports from Micron Technology Inc. (Nasdaq: MU) and NovaGold Resources Inc. (USA) (NYSEMKT: NG).
- 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 stock you must avoid, starting now.
Today's U.S. Economic Calendar (all times EDT)
- Richmond Fed President Jeffrey Lacker speaks at 8:05 a.m.
- Gallup US ECI at 8:30 a.m.
- Redbook at 8:55 a.m.
- 4-Week Bill Auction at 11:30 a.m.
- Chicago Federal Reserve President Charles Evans speaks at 8 p.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.