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The Dow Jones Industrial Average pushed lower thanks to a slump in oil prices and energy stocks.
Investors also showed bearish sentiment for stocks as the likelihood of an interest rate hike increased after a speech by U.S. Federal Reserve Vice Chair Stanley Fischer. According to the CME Group's FedWatch Tool, the probability of a December rate hike stands at 69.1%.
The Nasdaq slumped due to weakness in the technology sector, with Amazon.com Inc. (Nasdaq: AMZN) and Netflix Inc. (Nasdaq: NFLX) weighing the index ahead of the latter's earnings report after the bell today.
Let's look at the final numbers on Monday for the Dow, S&P 500, and Nasdaq:
Dow Jones: 18,085.86; -52.52; -0.29%
S&P 500: 2,126.49; -6.49; -0.30%
Nasdaq: 5,199.82; -14.34; -0.27%
Now, here's a look at today's most important market events and stocks, plus a preview of Tuesday's economic calendar.
DJIA Today: Markets Eye Fed Rate Timing; Oil Prices Slump on OPEC News
The Dow Jones fell 52 points on Monday, as investors weighed a speech from Fed Vice Chair Stanley Fischer and falling oil prices battered energy stocks. Meanwhile, investors were also rattled by comments made earlier today by billionaire activist investor Carl Icahn. During an interview on CNBC, Icahn said that many stocks were "overvalued" and that he is increasingly worried about the future direction of the markets.
Don't Miss: How to Profit from a Stock Market Drop
This is just the start of a busy week for the financial sector.
Big banks like JPMorgan Chase & Co. (NYSE: JPM), Citigroup Inc. (NYSE: C) and Wells Fargo & Co. (NYSE: WFC) laid out their earnings Friday. After Bank of America's statement this morning, investors should be looking for ways to capitalize on any potential profit opportunities and weakness in the sector. Money Morning Capital Wave Strategist Shah Gilani lays out a strategy to make big gains in the months ahead. Read his latest insight, right here.
The Fed and other central banks around the globe are creating immense threats that are staring every investor in the eye, but too many are choosing to ignore them. When the dust settles, only one currency will be worth owning, and there's never been a better time to own it than right now. [Editor's Note: Read all about this global currency and start profiting – and protecting yourself – right away.]
The price of crude oil today fell again as traders grew increasingly more concerned about oversupply on the global markets. Investors continue to speculate on whether the Organization of the Petroleum Exporting Countries (OPEC) will curb production in order to support higher crude prices. OPEC agreed last month to reduce supplies to under 33 million barrels per day. The global oil cartel will be meeting in Vienna, Austria, in November to bolster its agreement.
The WTI crude oil price today fell 1.3%, while the Brent crude oil price dipped 1.2%.
But the big story today – one that has slipped off the mainstream media's radar – is the next housing crisis. The zero-interest-rate policy (ZIRP) of the Federal Reserve has been a boon for hard assets like real estate. While the U.S. real estate market has largely recovered from the depth of the 2008-2009 financial crisis, there are six cities across the country where values are pushing back into "bubble" territory. Do you live in any of these six cities?
Top Stock Market News Today, Oct. 17, 2016
- Shares of Caterpillar Inc. (NYSE: CAT) slipped after the industrial equipment manufacturer announced that its CEO Doug Oberhelman will resign at the end of 2016. CAT stock fell more than 0.7% on the news.
- In earnings news, Bank of America Corp. (NYSE: BAC) crushed quarterly earnings expectations and reported earnings per share (EPS) of $0.41 on top of $21.64 billion in revenue. The firm cited strong trading revenue for the positive report.
- Shares of Netflix Inc. (Nasdaq: NFLX) fell 2.5% as the streaming giant prepares to report fiscal third-quarter earnings after the bell. Analysts expect the firm will report per-share earnings of $0.06 on top of $2.28 billion in revenue, but concerns remain that the company's subscriber growth has stalled. At Money Morning, we've been bullish about NFLX stock for a long time. And, as we explain right here, this is a stock to own for the long term, making this week an ideal time to purchase NFLX shares.
- After the bell, look for additional earnings reports from International Business Machines Corp. (NYSE: IBM), United Continental Holdings Inc. (NYSE: UAL), and Celanese Corp. (NYSE: CE).
- In deal news, shares of Mentor Graphics Corp. (Nasdaq: MENT) gained 2.8% on news that it has hired Bank of America Corp. (NYSE: BAC) to help it explore strategic options, including a possible sale of the firm. The announcement comes shortly after activist hedge fund Elliott Management took an 8.1% stake in the company.
- Finally, shares of BASF SE (OTCMKTS ADR: BASFY) fell 1% after an explosion rocked the chemical giant's largest production facility in Germany. According to reports, one person has died and six people were injured after the explosion.
Tuesday's U.S. Economic Calendar (all times EDT)
- Consumer Price Index at 8:30 a.m.
- Redbook at 8:55 a.m.
- Housing Market Index at 10 a.m.
- 4-Week Bill Auction at 11:30 a.m.
- Treasury International Capital at 4 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.