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This morning, the Dow Jones Industrial Average slipped thanks to another round of weak economic data from China and another rally for the U.S. dollar.
China reported a 10% decline in exports, raising new concerns about its economic growth and previous stimulus efforts.
On Wednesday, the Dow gained 15 points as traders eyed several speeches from Federal Reserve officials and digested the release of the September FOMC meeting minutes.
Expectations are rising that the Fed will hike interest rates after the election.
So when is the next Fed Open Market Committee meeting, and what's on tap next for our readers? We answer those questions, right here.
Wednesday's Stock Market Numbers:
Dow Jones: 18,144.20; 15.54; 0.09%
S&P 500: 2,139.17; 2.44; 0.11%
Nasdaq: 5,239.02; -7.77; -0.15%
What's Ahead for the Dow Jones Industrial Average Today
The Dow Jones Industrial Average projected a 93-point decline as investors weighed the monthly Chinese export data. But there's far more happening that has pushed global stocks down over the last few weeks. Investors are eyeing the Fed's next interest hike, a heated and controversial presidential election, weakness in the European financial sector, and the fallout from Britain's decision to depart the European Union.
Oil prices were pushing higher thanks to record imports to China. However, gains were limited due to a rising U.S. dollar and news that OPEC production had surged to its highest level in eight years. Meanwhile, the markets were still reacting to Wednesday's announcement by the American Petroleum Institute that domestic crude stocks had increased by 2.7 million barrels. The U.S. Energy Information Administration will announce its official report at 11 a.m. today. Any increase would be the first after five straight weeks of inventory declines.
The WTI crude oil price today added 0.2%, while the Brent crude oil price gained 0.3%.
But the big story on Thursday is happening at Wells Fargo & Co. (NYSE: WFC). CEO John Stumpf has stepped down as CEO due to pressure over the firm's fake account scandal. WFC stock gained 2% on the news. In a statement, Stumpf said that he felt he'd become a distraction over the last few weeks. Tim Sloan will take over control of the firm. But unless the company radically changes its culture, we could see more of the same from the "too big to fail" bank. Oh, by the way… Stumpf will walk away from Wells Fargo with up to $137 million. Money Morning Capital Wave Strategist Shah Gilani weighs in on the crisis, right here.
Stocks to Watch Today, Oct. 13, 2016
- The problems at Deutsche Bank AG (USA) (NYSE: DB) continue to mount. According to reports, CEO John Cryan has implemented a hiring freeze across the entire organization. The firm is attempting to reduce costs and bolster confidence among investors. Money Morning Global Credit Strategist Michael Lewitt – who predicted crisis at Germany's largest bank last year – says that the company is part of another brewing problem for the global markets. And this one number is a stunning indicator of the problems ahead for global credit markets.
- It's another busy day for earnings reports. This morning, shares of Delta Air Lines Inc. (NYSE: DAL) gained 0.3% after the company topped Wall Street profit expectations but fell short on revenue. The firm reported earnings per share (EPS) of $1.70 on top of $10.43 billion in revenue. Wall Street analysts expected $1.65 on top of $10.59 billion in revenue.
- Look for additional earnings reports from Marriott Vacations Worldwide Corp. (NYSE: VAC), Lindsay Corp. (NYSE: LNN), Progressive Corp. (NYSE: PGR), ClubCorp Holdings Inc. (NYSE: MYCC), and Winnebago Industries Inc. (NYSE: WGO).
Today's U.S. Economic Calendar (all times EDT)
- Jobless Claims at 8:30 a.m.
- Import and Export Prices at 8:30 a.m.
- Bloomberg Consumer Comfort Index at 9:45 a.m.
- EIA Natural Gas Report at 10:30 a.m.
- EIA Petroleum Status Report at 11 a.m.
- 3-Month Bill Announcement at 11 a.m.
- 6-Month Bill Announcement at 11 a.m.
- 30-Year TIPS Announcement at 11 a.m.
- Philadelphia Federal Reserve Bank President Patrick Harker speaks at 12:15 p.m.
- 30-Year Bond Auction at 1 p.m.
- Treasury Budget at 2 p.m.
- Fed Balance Sheet at 4:30 p.m.
- Money Supply at 4:30 p.m.
- Minneapolis Federal Reserve Bank President Neel Kashkari speaks at 9 p.m.
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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.