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This morning, the Dow Jones Industrial Average was climbing as the Federal Reserve kicks off its November meeting.
Top auto companies will also update the markets on their recent monthly sales.
On Monday, the Dow Jones fell 18 points after investors eyed a sharp downturn in crude oil prices. Markets also continued to react to Friday's news that the FBI had discovered new emails tied to Hillary Clinton.
Monday's Stock Market Numbers:
Dow Jones: 18,142.42; -18.77; -0.10%
S&P 500: 2,126.15; -0.26; -0.01%
Nasdaq: 5,189.13; -0.97; -0.02%
Now, here's a look at today's most important market events and stocks, plus a look at Tuesday's economic calendar.
What's Ahead for the Dow Jones Industrial Average Today
The Dow Jones Industrial Average projected a 23-point gain as markets remained in their pre-election holding pattern. Traders do not expect the Federal Reserve to adjust interest rates just a few days before the nation chooses its 45th president. Today, investors are hoping for positive economic data from the manufacturing and construction industries. In addition, look out for October sales reports from the nation's top auto manufacturers.
Trending Story: The Best Marijuana Stocks to Watch
The price of crude oil today is hovering near a one-month low. Crude prices were mixed in pre-market hours as investors weigh new developments in the OPEC deal. As Money Morning Global Energy Strategist Dr. Kent Moors has explained, the deal to cap production to support prices is on the verge of collapse. Several OPEC nations have said that they are unwilling or unable to cut production given budgetary restraints. The global oil cartel will again meet on Nov. 30, and the prospects that a deal gets implemented are fading fast. Here's where crude prices are heading next.
The WTI crude oil price today fell 0.3%, while the Brent crude oil price added 0.3%.
In other energy news, shares of BP Plc. (NYSE ADR: BP) fell more than 1.6% after the energy giant reported a huge decline in third-quarter profitability. European energy companies have had a dismal earnings season due to the large global supply glut and falling crude prices. The lone bright spot? Royal Dutch Shell Plc. (NYSE ADR: RDS.A) gained more than 3.6% this morning after the firm topped expectations.
But the big story in pre-market hours is the Federal Reserve. America's favorite band of academic speculators will gather and pretend they know what they are doing. The Federal Reserve is not expected to raise interest rates until December, but eight years of monetary experimentation have the markets and the economy on edge. Money Morning Capital Wave Strategist Shah Gilani explains that the Fed's continued intrusion into the global economy isn't going to end well. Here's what you need to know and how you must protect yourself.
Stocks to Watch Today, Nov. 1, 2016
- Once again, Wells Fargo & Co. (NYSE: WFC) is back in the news and it's not because of its new advertisements touting the firm's efforts to alter its culture. Reuters reports that the company has agreed to pay $50 million to settle charges that it overcharged customers on their home appraisals.
- Shares of Valeant Pharmaceuticals International Inc. (NYSE: VRX) hit a 52-week low on Monday after Bloomberg reported 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.
- 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 earnings per share (EPS) figure 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 early this morning.
- Look for additional earnings reports from Gilead Sciences Inc. (Nasdaq: GILD), Electronic Arts Inc. (Nasdaq: EA), Zillow Group (Nasdaq: ZG), Coach Inc. (NYSE: COH), Tableau Software Inc. (Nasdaq: DATA), Pfizer Inc. (NYSE: PFE), Sturm, Ruger & Co. (NYSE: RGR), Illumina Inc. (Nasdaq: ILMN), Herbalife Inc. (NYSE: HLF), United States Steel Corp. (NYSE: X), Devon Energy Corp. (NYSE: DVN), Papa John's International Inc. (Nasdaq: PZZA), Kellogg Co. (NYSE: K), and Square Inc. (NYSE: SQ).
Today's U.S. Economic Calendar (all times EDT)
- Redbook at 8:55 a.m.
- PMI Manufacturing Index at 9:45 a.m.
- ISM Manufacturing Index at 10 a.m.
- Construction Spending at 10 a.m.
- 4-Week Bill Auction at 11:30 a.m.
- Gallup US ECI 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.