This morning, the Dow Jones Industrial Average slipped ahead of a major announcement by the Fed Open Market Committee (FOMC).
The U.S. central bank will release the minutes from September's monetary policy meeting.
On Tuesday, the Dow shed 200 points after a sell-off in healthcare stocks and a rising dollar battered commodity prices.
Tuesday's Stock Market Numbers:
Dow Jones: 18,128.66; -200.38; -1.09%
S&P 500: 2,136.73; 26.93; -1.24%
Nasdaq: 5,246.79; -81.89; -1.54%
What's Ahead for the Dow Jones Industrial Average Today
The Dow Jones Industrial Average projected a 28-point decline ahead of today's release of the September FOMC meeting minutes. Before the release, pay attention to speeches from two members of the central bank.
Both New York Federal Reserve Bank President William Dudley and Kansas City Federal Reserve Bank President Esther George will talk this morning.
Oil prices were ticking higher on Wednesday as investors eyed a surge in imports in India and speculation continued about the success of OPEC's production deal. Money Morning Global Energy Strategist Dr. Kent Moors has been taking a cautious approach to the recent deal among OPEC producers. Here's his latest insight into the games being played by Saudi Arabia energy officials.
The WTI crude oil price today added 0.4%, while the Brent crude oil price gained 0.5%.
But the big story on Wednesday is taking place across the Atlantic Ocean. The fallout from the British exit from the European Union (Brexit) is wreaking havoc on the sterling. This morning, the pound climbed and rebounded from 31-year lows. For the first time in history, dollar-pound parity could become a reality. In other words, the pound could soon be worth as much as the dollar. What does this mean for traders exposed to the British economy? We break down that answer, right here.
Stocks to Watch Today, Oct. 12, 2016
- Wells Fargo & Co. (NYSE: WFC) is back in the news thanks to its fake account scandal that cost customers $5 million. The firm is trying to pass this scam off as the result of just a "few bad apples." But investors need to know that the moral hazard created by Wells Fargo and many other banks are all part of the culture and the profit strategy of Wall Street. That's why Money Morning Resource Specialist Peter Krauth recommends that you invest in "alternative money" to avoid paying for the corruption of banks.
- On the earnings front, Alcoa Inc. (NYSE: AA) was still falling on Wednesday after the stock plunged more than 11% during Tuesday's trading session. Alcoa unofficially kicked off the earnings season and fell well short of expectations. Meanwhile, shares of Barracuda Networks Inc. (NYSE: CUDA) surged more than 8.8% after the firm shattered earnings expectations. The company reported earnings per share (EPS) of $0.21, well above the consensus expectation of $0.13.
- Look for additional earnings reports from CSX Corp. (Nasdaq: CSX).
Today's U.S. Economic Calendar (all times EDT)
- MBA Mortgage Applications at 7 a.m.
- New York Federal Reserve Bank President William Dudley speaks at 8 a.m.
- Kansas City Federal Reserve Bank President Esther George speaks at 9:40 a.m.
- JOLTS at 10 a.m.
- 3-Year Note Auction at 1 p.m.
- 10-Year Note Auction at 1 p.m.
- FOMC Minutes at 2 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.