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The Dow Jones Industrial Average fell sharply on Tuesday as investors remain skittish on the outcome of next week's presidential election.
Over the last few days, the markets seemed to be in a holding pattern ahead of next Tuesday's national vote. However, recent developments in the FBI's investigation of Hillary Clinton's private email server have narrowed the polls. According to The Guardian, there are as many as five different active investigations into the inner circle of the Clinton campaign, one that now includes disgraced former Congressman Anthony Weiner, the estranged husband of Clinton's aide, Huma Abedin.
The S&P 500 briefly slipped below 2,100 thanks to a large slump in Apple Inc. (Nasdaq: AAPL) stock. Shares of AAPL fell more than 2.1% as investors grow increasingly concerned about the company's sales in China. Money Morning Global Credit Strategist Michael Lewitt explains that the S&P 500 hit his price target early by 11 months. Now, Lewitt outlines his next forecast for the markets, right here.
Let's look at the final numbers on Tuesday for the Dow, S&P 500, and Nasdaq:
Dow Jones: 18,037.17; -105.25; -0.58%
S&P 500: 2,111.72; -14.43; -0.68%
Nasdaq: 5,153.58; -35.56; -0.69%
Now, here's a look at today's most important market events and stocks, plus a preview of Wednesday's economic calendar.
DJIA Today: Markets Slide on Prospect of President Trump
The Dow Jones dropped 105 points with election 2016 in focus. Volatility surged on Tuesday as increasing uncertainty about Tuesday's vote has the markets spooked. The CBOE Volatility Index (VIX) – commonly referred to as the markets' fear gauge – surged 13.4% to 19.3.
This morning, the Federal Reserve kicked off its penultimate meeting on monetary policy. Markets do not expect the Fed Open Market Committee to raise interest rates; however, the markets have placed the odds of a rate hike in December at nearly 74%. Even though no rate hike will likely come before the election, the November FOMC meeting will generate a lot of headlines and affect your investments. Here's everything you need to know.
The price of crude oil today again slumped as investor sentiment for OPEC's production cut deal continues to sour. The WTI crude oil price today fell roughly 0.5%, while the Brent crude oil price dipped 0.9%. Traders will be eyeing inventory data this afternoon from the American Petroleum Institute. The markets expect a large build in U.S. crude inventories as unseasonably warm weather continues to spread through the Midwest and East Coast of the United States.
Money Morning Global Energy Strategist Dr. Kent Moors is traveling this week, but he stopped to offer his latest insight on what to expect from OPEC and crude prices moving forward. As Moors explains, his sources just indicated that something dramatic is happening in the global energy industry. This has never happened before and it could change everything for crude prices moving forward. Check out the startling rumor that could unleash a new wave of energy profits.
But the big story today was Valeant Pharmaceuticals International Inc. (NYSE: VRX), which gained more than 3.4% despite news that the government is investigating former CEO Michael Pearson and former CFO Howard Schiller. According to reports, regulators are examining whether the two leaders engaged in accounting fraud. After the news broke on Monday, shares plunged more than 11%. We need to remind you to ignore any bump in the stock in the weeks and months ahead. Money Morning Global Credit Strategist Michael Lewitt has warned investors that this stock is worthless. And we expect that the stock will continue plunge. Here's our latest update on VRX stock and why you must avoid it.
Top Stock Market News Today, Nov. 1, 2016
- Shares of Yum China (NYSE: YUMC) made their debut on the New York Stock Exchange on Tuesday. The new publicly traded company is a spin-off of the Yum! Brands Inc. (NYSE: YUM) Asian business. The spin-off comes two years after a tainted meat scandal rocked the fast-food operator in China. Shares fell 0.1% in their first trading day.
- In earnings news, shares of Pfizer Inc. (NYSE: PFE) fell more than 2.7% after the drug company fell short of Wall Street earnings estimates. The company reported an adjusted EPS of $0.61, which was a penny below expectations. The firm also slashed its full-year forecast and discontinued a popular blood pressure drug. Those reports pushed shares down in pre-market hours.
- After the bell, look for additional earnings reports from Gilead Sciences Inc. (Nasdaq: GILD), Electronic Arts Inc. (NYSE: EA), Zillow Group (Nasdaq: ZG), Sturm, Ruger & Co. (NYSE: RGR), Illumina (Nasdaq: ILMN), and Herbalife Inc. (NYSE: HLF).
Wednesday's U.S. Economic Calendar (all times EDT)
- MBA Mortgage Applications at 7 a.m.
- ADP Employment Report at 8:15 a.m.
- Gallup U.S. Job Creation Index at 8:30 a.m.
- Treasury Refunding Announcement at 8:30 a.m.
- 3-Year Note Announcement at 8:30 a.m.
- 10-Year Note Announcement at 8:30 a.m.
- 30-Year Bond Announcement at 8:30 a.m.
- EIA Petroleum Status Report at 10:30 a.m.
- FOMC Meeting Announcement at 2 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.