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The Dow Jones Industrial Average pushed higher on Wednesday despite a downturn in crude prices and mixed earnings reports. The Nasdaq and the S&P 500 both slumped thanks to a lackluster sales forecast from Apple Inc. (Nasdaq: AAPL). Another positive round of economic data helped support market optimism and set the stage for a critical GDP report on Thursday.
Let's look at the final numbers on Wednesday for the Dow, S&P 500, and Nasdaq:
Dow Jones: 18,199.93; 30.06; 0.17
S&P 500: 2,139.43; -3.73; -0.17%
Nasdaq: 5,250.27; -33.13; -0.63%
Now, here's a look at today's most important market events and stocks, plus a preview of Thursday's economic calendar.
DJIA Today: Markets Push Higher Despite Falling Oil Prices
The Dow Jones rallied 30 points despite a downturn in crude prices. The market was largely boosted by shares of Boeing Co. (NYSE: BA), which rallied more than 4.8%. The global airline manufacturer topped Wall Street EPS and revenue expectations. The company also hiked its revenue guidance, adding more fuel to growing investor sentiment.
Don't Miss: 7 Reasons to Invest in Marijuana Stocks Now
Meanwhile, in economic news, sales of single-family homes surged in September despite evidence of tightening supply in the U.S. housing market. U.S. trade data showed that the nation's deficit narrowed. Finally, the October services PMI index jumped to 54.8 from 52.3 in September.
Today's positive data sets the tone for tomorrow's release of the third-quarter GDP report by the U.S. Commerce Department. Economists anticipate that the U.S. economy expanded by 2.5% in the third quarter.
The price of crude oil today is falling again as traders fret about the possibility of another global supply glut and the collapse of the September OPEC production deal. The WTI crude oil price today fell 1.6%, while the Brent crude oil price dipped 1.8%.
News of that lack of cooperation among OPEC countries and rising output in Nigeria offset a surprise drawdown in U.S. crude supplies. This afternoon, the Energy Information Administration reported that crude stockpiles fell 553,000 barrels last week. That shocked analysts, who had expected an increase of crude inventories by 1.7 million barrels.
Of course, the real story is the instability of the OPEC deal. Money Morning Global Energy Strategist Dr. Kent Moors says that the deal is on the brink of collapse, and he blames one unexpected culprit. Be sure to check out his latest insight and price forecast, right here.
But a big story today was the earnings report of casual dining giant Chipotle Mexican Grill Inc. (NYSE: CMG). The stock had its worst day of 2016, falling 9% after the firm reported a huge drop in quarterly sales after the bell on Tuesday. Same-store sales declined by 22%. The company badly missed Wall Street earnings expectations as well. The firm reported per-share earnings of $0.79, where analysts had expected $1.62 per share. The company also fell short of revenue expectations. CMG stock has been one that we have recommended you should avoid. In fact, back in September, we explained why the company's short-term rally wasn't sustainable. And investors should expect that CMG will only face more problems in the future.
Top Stock Market News Today, Oct. 26, 2016
- Shares of Apple Inc. (Nasdaq: AAPL) fell more than 2.5% after the company reported earnings on Tuesday afternoon. The technology giant beat Wall Street earnings expectations and topped forecasts for iPhone sales. However, investors balked at the company's forecast for future iPhone sales and raised concerns about a sharp revenue decline in China. Despite yesterday's forecast, the pullback in APPL stock this afternoon has presented a buying opportunity. Here's why you should own Apple shares and where the price of AAPL stock is heading next.
- Shares of Tesla Motors Inc. (Nasdaq: TSLA) are in focus as the company prepares to release its quarterly report after the bell. If you own TSLA stock or are considering it, there are three distinct keys to understanding where Tesla is heading next. We break them down, right here. Shares slipped 0.2% ahead of the earnings report.
- Look for additional earnings reports from Groupon Inc. (Nasdaq: GRPN), VMWare Inc. (NYSE: VMW), Buffalo Wild Wings Inc. (Nasdaq: BWLD), F5 Networks Inc. (Nasdaq: FFIV), Texas Instruments (NYSE: TXN), Southwest Airlines Co. (NYSE: LUV), GrubHub Inc. (Nasdaq: GRUB), and Comcast Corp. (Nasdaq: CMCSA).
- Finally, if you want to make money through investing, you need to learn about a powerful Total Wealth Tactic. Money Morning Chief Investment Strategist Keith Fitz-Gerald shows you how you can double your money using a simple strategy while investing in Alphabet Inc. (Nasdaq: GOOGL), the parent company of Google. [Editor's Note: Here's what you need to know.]
Tuesday's U.S. Economic Calendar (all times EDT)
- Durable Goods Orders at 8:30 a.m.
- Jobless Claims at 8:30 a.m.
- Bloomberg Consumer Comfort Index at 9:45 a.m.
- Pending Home Sales Index at 10 a.m.
- EIA Natural Gas Report at 10:30 a.m.
- Kansas City Fed Manufacturing Index at 11 a.m.
- 3-Month Bill Announcement at 11 a.m.
- 6-Month Bill Announcement at 11 a.m.
- 7-Year Note Auction at 1 p.m.
- Fed Balance Sheet at 4:30 p.m.
- Money Supply at 4:30 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.