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The Dow Jones Industrial Average pushed higher after another round of mergers and acquisitions and a strong day of earnings reports. Roughly one-third of S&P 500 components will report quarterly earnings this week, and investors are increasingly optimistic that we may emerge from an earnings recession that has battered corporate America.
Let's look at the final numbers on Monday for the Dow, S&P 500, and Nasdaq:
Dow Jones: 18,223.03; 77.32; 0.43%
S&P 500: 2,151.33; 10.17; 0.47%
Nasdaq: 5,309.83; 52.43; 1.00%
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 Rally After Latest Round of Mergers and Acquisitions
The Dow Jones gained 77 points during a busy day of deal news and earnings reports.
A group of economists say there is a 20% chance of a recession within the next 12 months, with low interest rates, the slowdown in China, and the fall of the pound taking the lead. But Money Morning Options Trading Specialist Tom Gentile warns about another factor that could push the economy into a recession. What is that recession driver? Find out, right here.
The price of crude oil today fell on Monday after Iraqi energy ministers demanded an exemption from OPEC's planned production cut. The nation's leaders complained that its war-ravaged economy is being unfairly punished. Iraqi oil minister Jabar Ali al-Luaibi also said that the country needs additional revenue from oil production to pay the costs of fighting ISIS militants.
The WTI crude oil price today fell 0.6%, while the Brent crude oil price dipped 0.5%. Money Morning Global Energy Specialist Dr. Kent Moors offers his latest insight on the major trends that are impacting the oil markets, right here.
The spot gold price today slipped despite news that the U.S. dollar fell from a nine-month high. Gold prices dipped 0.2% on the day. It's been a wild ride for gold prices over the last few months. After a 29% price surge over the first seven months of 2016, gold prices have retreated due to increased expectations for another interest rate hike by the Federal Reserve in December. So, where are gold prices going over the next 12 months? Money Morning Resource Specialist Peter Krauth says that gold could be heading to $1,400 per ounce. Krauth has also set a shocking price target for 2020...
But the big story today was the mega-deal between AT&T Corp. (NYSE: T) and Time Warner (NYSE: TWX). Over the weekend, the two companies announced that they had agreed in principle to an $85.4 billion deal. However, shares of Time Warner stock were trading 20% below the implied value of AT&T's proposed offer. That's because investors aren't convinced that the deal will be approved by U.S. regulators. The deal is yet another sign that companies around the country are stuck in neutral and unable to grow organically. The cable industry has been dominated by a wealth of mergers and stock buybacks in recent years. This deal is also another sign that the U.S. political system is rigged in favor of big business. Here's the latest.
Top Stock Market News Today, Oct. 24, 2016
- In addition to a huge merger in the telecommunications industry, two other big deals pushed the markets higher. TD Ameritrade (Nasdaq: AMTD) said it will purchase rival Scottrade for $4 billion. Meanwhile, shares of airplane interior maker B/E Aerospace (Nasdaq: BEAV) rallied more than 16% on news it will sell itself to Rockwell Collins (NYSE: COL) for roughly $6.4 billion.
- On Nov. 8, nine states will be voting on marijuana legalization referendums in a single day. And this could create one of the greatest wealth grabs in the history of the United States. If you want to make some real money, you'll want to get out in front of this vote and identify the companies poised for big gains as states continue to liberalize their cannabis laws. [Editor's Note: Here's our marijuana profit guide.]
- Shares of Apple Inc. (Nasdaq: AAPL) are in focus as the tech giant prepares to release its Q3 earnings after the bell tomorrow. APPL stock has been on a big run in the last few months. And we expect that Apple stock will continue to climb.
Tuesday's U.S. Economic Calendar (all times EDT)
- Redbook at 8:55 a.m.
- FHFA House Price Index at 9 a.m.
- S&P Corelogic Case-Shiller HPI at 9 a.m.
- Consumer Confidence at 10 a.m.
- Richmond Fed Manufacturing Index at 10 a.m.
- State Street Investor Confidence Index at 10 a.m.
- 4-Week Bill Auction at 11:30 a.m.
- 2-Year Note Auction at 1 p.m.
- Atlanta Federal Reserve Bank President Dennis Lockhart speaks at 1:20 p.m.
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About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.