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This morning, the Dow Jones Industrial Average looked spooked by the possibility that new developments into Hillary Clinton’s email server could tilt the results of the 2016 election.
Investors are also eyeing a report that personal incomes increased by 0.3% in September, just shy of the 0.4% gains that economists had expected.
On Friday, the Dow Jones rallied 62 points in the morning trading session, but quickly reversed course after news of the new Clinton email probe. The Dow finished the day down seven points.
Friday’s Stock Market Numbers:
Dow Jones: 18,162.22; -7.46; -0.04%
S&P 500: 2,126.49; -6.55; -0.31%
Nasdaq: 5,190.10; -25.87; -0.50%
Now, here's a look at today's most important market events, plus a preview of today's economic calendar.
What’s Ahead for the Dow Jones Industrial Average Today
The Dow Jones Industrial Average projected a small gain as the 2016 election is now just eight days away and investors are attempting to measure the odds of a Hillary Clinton presidency.
In deal news, General Electric Co. (NYSE: GE) announced a $32 billion merger with Baker Hughes Inc. (NYSE: BHI). The global manufacturing giant had announced last week that the two firms were engaged in strategic partnerships and denied speculation that a deal was imminent. This morning, the two companies announced a deal that will see General Electric own 62.5% of the oil field services giant. Shares of Baker Hughes rallied 8.4% in pre-market hours.
The price of crude oil today is falling to its lowest level in one month. Investors are concerned OPEC won’t reach a deal to cap excessive production. This morning, Reuters reported that non-OPEC members have made no commitment to cap production levels in order to help stabilize and boost prices.
The WTI crude oil price today fell 0.8%, while the Brent crude oil price dipped 0.9%.
But the big story in pre-market hours is the 2016 election. On Friday, the 2016 election was thrown into chaos after the FBI announced it was investigating new developments into the case of Hillary Clinton’s email server. According to reports, the FBI discovered new emails tied to Clinton aide Huma Abedin, the wife of former U.S. Congressman Anthony Weiner. Following the announcement, the markets shed their gains. The FBI has said it will not be finished with its investigation by the election. However, any damning evidence could lead to a rocky start for Clinton if she wins the election, as Republicans could demand more investigations. We could also see even greater gridlock in Washington in the months ahead.
Stocks to Watch Today, Oct. 31, 2016
- Shares of Level 3 Communications (NYSE: LVLT) rallied 6.5% on news that it would be purchased by Centurylink Inc. (NYSE: CTL) for $32 billion. The deal sent CTL stock down almost 7%. The purchase price of $66.50 per share is a 42% premium over Friday’s closing price for LVLT stock.
- Look for additional earnings reports from Check Point Software Technologies Ltd. (Nasdaq: CHKP), Anadarko Petroleum Corp. (NYSE: APC), Tenet Healthcare Corp. (NYSE: THC), Diamond Offshore Drilling Inc. (NYSE: DO), Olin Corp. (NYSE: OLN), Roper Technologies Inc. (NYSE: ROP), Lumber Liquidators Holdings Inc. (NYSE: LL), Integrated Device Technologies Inc. (Nasdaq: IDTI), Nautilus Inc. (NYSE: NLS), Williams Companies Inc. (NYSE: WMB), and Cardinal Health Inc. (NYSE: CAH).
- Finally, if you’re looking for the best stocks to buy now, you need to follow a major rule. Keep in mind that just because a stock has experienced steady gains or recently hit a 52-week high, that doesn't mean it's "too late" to take a stake in the firm. This morning, we outline three of our favorite stocks that have seen tremendous success in recent years. And, as we explain, all three have plenty of room for significant gains in the months and years ahead. Check them out, right here.
Today’s U.S. Economic Calendar (all times EDT)
- Personal Income and Outlays at 8:30 a.m.
- Chicago PMI at 9:45 a.m.
- Dallas Fed Manufacturing Survey at 10:30 a.m.
- 4-Week Bill Announcement at 11 a.m.
- 3-Month Bill Auction at 11:30 a.m.
- 6-Month Bill Auction at 11:30 a.m.
- Farm Prices at 3 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.