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The Dow Jones Industrial Average rallied on higher oil prices and strong gains in financial stocks. The S&P 500 received a strong boost from Chesapeake Energy Corp. (NYSE: CHK), which saw shares rise more than 5.5% and was the index's top performer of the day.
Let's look at the final numbers on Wednesday for the Dow, S&P 500, and Nasdaq:
Dow Jones: 18,281.03; 112.58; 0.62%
S&P 500: 2,159.73; 9.24; 0.43%
Nasdaq: 5,316.02; 26.36; 0.50%
Now, here's a look at today's most important market events and stocks, plus a preview of Thursday's economic calendar.
DJIA Today: Red-Hot TWTR Takeover Rumors; Oil Prices Surge
The Dow Jones rallied 112 points thanks to strong gains in financial and energy stocks; investors weighed a wealth of earnings reports; and takeover speculation boosted the technology sector.
Twitter Inc. (NYSE: TWTR) again dominated the daily session. Chatter about a potential takeover of the embattled social media giant pushed shares up more than 4%. According to reports, Salesforce.com Inc. (NYSE: CRM) CEO Marc Benioff is looking to make a deal, although rumors have tied both Walt Disney Co. (NYSE: DIS) and Alphabet Inc.'s (Nasdaq: GOOGL) Google.
No doubt about it. Buying Twitter would be a mistake for anyone given the social media firm's stagnant user growth and its struggling advertising efforts. In fact, investment firm Mizuho issued a warning about Salesforce's desire to buy the company, and CRM stock plunged more than 6% on the news. Here's the latest on Twitter takeover rumors.
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The price of crude oil today rallied again on Wednesday after the U.S. Energy Information Administration announced a surprise drop in weekly crude inventories. The EIA announced that crude inventories fell by 3 million barrels last week, well above consensus expectations for the report. In addition, investors continue to show positive sentiment from OPEC's deal. Today, both OPEC and non-OPEC producers have set plans to discuss production during a weeklong meeting in Istanbul, Turkey, starting Oct. 8.
Money Morning Global Energy Strategist Dr. Kent Moors says that the global oil cartel has one major challenge ahead of it before it succeeds in boosting global crude prices. Here it is.
The WTI crude oil price today gained 2.1%. Meanwhile, the Brent crude oil price added 1.7%.
But the big story today is at Deutsche Bank AG (USA) (NYSE: DB). The German megabank has seen its shares bounce off an all-time low this week as concerns about its liquidity have abated. Politicians in Europe and banking titans like JPMorgan Chase & Co. (NYSE: JPM) CEO Jamie Dimon have all tried to calm the waters with soothing rhetoric about the firm's balance sheet. The bank is the fourth-largest in Europe with more than $2 trillion in assets. The German government doesn't want to bail out the firm as its share price continues to erode over the last few years. Without a bailout, Deutsche Bank's fate seems sealed… and Germany could have to step in. But it gets even worse. DB's collapse could take the rest of Europe – and even the global economy – with it. Talk of the next Great Depression is already starting, and it's from the bank's own economist.
Top Stock Market News Today, Oct. 5, 2016
- Wells Fargo & Co. (NYSE: WFC) stock gained more than 2% on the day as financial stocks offered a strong boost to the S&P 500. The S&P Financial Sector (SPSY) added nearly 1.5% on the day as concerns about Deutsche Bank fade and investors look to earnings reports. Wells Fargo remains under serious scrutiny, however, as the fake account scandal has spread from its consumer division to its small business side. Here's more on the Wells Fargo scam and what it means for investors looking forward.
- Shares of Netflix Inc. (Nasdaq: NFLX) rallied another 3.8% on speculation that the streaming giant could become a takeover target. The gains came even though SunTrust Banks Inc. (NYSE: STI) issued a "Neutral" rating today on NFLX stock. Here's more on why NFLX stock has been rallying all week.
- The fourth-quarter earnings season continued on Wednesday, and things are off to a good start so far. Shares of Monsanto Co. (NYSE: MON) rallied after the company reported a surprise profit of $0.07 per share on top of $2.56 billion. Wall Street expected earnings per share (EPS) loss of $0.02 on top of $2.23 billion in revenue. The company continues to earn significant interest from investors given that it is the subject of a $66 billion planned merger with Bayer AG (OTCMKTS ADR: BAYRY).
- After the bell, look for additional reports from Yum! Brands Inc. (NYSE: YUM) and Resources Connection Inc. (Nasdaq: RECN).
Thursday's U.S. Economic Calendar (all times EDT)
- Challenger Job-Cut Report at 7:30 a.m.
- Jobless Claims at 8:30 a.m.
- Gallup Good Jobs Rate at 8:30 a.m.
- Bloomberg Consumer Comfort Index at 9:45 a.m.
- EIA Natural Gas Report at 10:30 a.m.
- 4-Week Bill Announcement at 11 a.m.
- 3-Month Bill Announcement at 11 a.m.
- 6-Month Bill Announcement at 11 a.m.
- 52-Week Bill Announcement at 11 a.m.
- 3-Year Note Announcement at 11 a.m.
- 10-Year Note Announcement at 11 a.m.
- 30-Year Bond Announcement at 11 a.m.
- Fed Balance Sheet at 4:30 p.m.
- Money Supply at 4:30 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.