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The Dow Jones Industrial Average slumped on Friday as investors weighed a decline in oil prices, a lackluster jobs report, and concerns about the health of the British economy.
The markets were also trying to make sense of a "flash crash" in the global currency markets. The British sterling fell to its lowest level in three decades and dropped by more than 6% in two minutes of trading. The sterling would recover, but finished down by about 2%.
Let's look at the final numbers on Friday for the Dow, S&P 500, and Nasdaq:
Dow Jones: 18,240.49; -28.01; -0.15%
S&P 500: 2,153.74; -7.03; -0.33%
Nasdaq: 5,292.40; -14.45; -0.27%
Now, here's a look at today's most important market events and stocks, plus a preview of Monday's economic calendar.
DJIA Today: Oil Prices Slump, Pulling the Dow Jones Down 28 Points
The Dow Jones fell 28 points thanks to a weak jobs report and a slump in oil prices. Energy stocks were off on the day, led by a 0.4% decline in Exxon Mobil Corp. (NYSE: XOM).
This morning, the U.S. Labor Department announced that the September unemployment rate increased to 5.0%. The economy added roughly 156,000 new jobs last month, a slump from the 176,000 that economists had forecast. The weak report comes at a time that there is heavy speculation on the timing of the next interest rate hike by the U.S. Federal Reserve.
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Shares of Twitter Inc. (NYSE: TWTR) fell another 0.5% as the sell-off continues for the microblogging firm. The company is looking for a suitor, but Walt Disney Co. (NYSE: DIS) and Alphabet Inc.'s (Nasdaq: GOOGL) Google are both out of the running, according to multiple reports. There is speculation that Salesforce.com Inc. (NYSE: CRM) may make a bid, but the elimination of several other candidates will likely reduce any premium that traders had anticipated. Mizuho analysts warned that a Twitter deal could reduce Salesforce's stock value by as much as 25%.
The price of crude oil today fell as traders took gains fueled by OPEC's production deal and news of falling inventories. The combination of both forces has put fears of a global supply glut in 2017 on ice. OPEC, which announced last week that it would cap November production, is now working diligently to get non-OPEC producers on board to help support global crude prices.
Money Morning Global Energy Strategist Dr. Kent Moors has called OPEC's deal a game-changer. However, there is much work to do for the global oil cartel. Moors explains what's next for oil prices and what investors must know about global production.
This afternoon, Baker Hughes Inc. (NYSE: BHI) reported that the U.S. rig count increased by three last week. That's the sixth straight week of gains for U.S. production platforms. But that's not the big story in energy investing today. Check out this report on Alaskan energy production, and how one little company made one of the most shocking discoveries in the history of the industry. This game-changer could create one of the greatest oil rushes of the 21st century.
The WTI crude oil price today fell by 1.4%. Meanwhile, the Brent crude oil price dipped 1.2%.
But the big story today was Deutsche Bank AG (USA) (NYSE: DB). The stock has rallied more than 18% this week after shares hit a 30-year low. Investors have been piling back into the German bank after politicians and Wall Street leaders reassured the markets that the company wasn't having a liquidity crisis. But we argue that investors shouldn't buy into this false rally.
Top Stock Market News Today, Oct. 7, 2016
- In IPO news, shares of Camping World Holdings (NYSE: CWH) gained 0.4% during its first day of trading on the New York Stock Exchange. The stock was priced at $22 per share. The firm sells protection plans and other products for recreational vehicle (RV) enthusiasts. While investors eye the stock's debut, the real IPO news centers on Snapchat. The firm is working on an IPO deal that could value it at $25 billion. Here's what we've uncovered about the Snapchat IPO date and more about the firm's future plans.
- Shares of Gap Inc. (NYSE: GPS) popped 14% despite news that the firm saw a 3% decline in September sales. The firm saw a 10% slump in comparable sales at its primary branded stores. Old Navy same-store sales were off by 4%.
- Shares of Ralph Lauren Corp. (NYSE: RL) gained more than 1.6% on news that Goldman Sachs Group Inc. (NYSE: GS) has added the firm to its "Conviction Buy" list. Analysts at the investment bank reiterated a "Buy" rating and projected that the stock could increase by another 18%.
- No major U.S. companies reported earnings on Friday. Keep an eye on the earnings calendar on Tuesday as Alcoa Inc. (NYSE: AA) unofficially kicks off the earnings season. On Monday, the markets will be open during Columbus Day, however, domestic banks will be closed.
- Finally, as we head into the final quarter of 2016, savvy investors are looking for an opportunity to find long-term appreciation upside in the markets. Nowhere is there more opportunity to make big money than in the technology sector. Today, we outline the three best technology stocks to buy right now. [Editor's Note: You can read all about them, right here.]
Monday's U.S. Economic Calendar (all times EDT)
- Labor Market Conditions Index at 10 a.m.
- TD Ameritrade IMX at 12:30 p.m.
- Chicago Federal Reserve Bank President Charles Evans speaks 10 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.