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This morning, the Dow Jones Industrial Average was heading higher after the Federal Reserve announced plans to leave interest rates unchanged before the election.
Markets had not expected the central bank to tinker with monetary policy, but the Fed Open Market Committee (FOMC) did issue a statement arguing that economic signs are improving and a rate hike could happen in December.
Here are the key takeaways from Wednesday's FOMC statement.
On Wednesday, the Dow Jones dipped another 77 points as investors eyed the latest report from the Federal Reserve on interest rates. Investors also weighed a weak jobs report issued this morning by Automatic Data Processing (ADP).
Wednesday's Stock Market Numbers:
Dow Jones: 17,959.64 -77.46 (-0.43%)
S&P 500: 2,097.94 -13.78 (-0.65%)
Nasdaq: 5,105.57 -48.01 (-0.93%)
Now, here's a look at today's most important market events and stocks, plus a look at Thursday's economic calendar.
What's Ahead for the Dow Jones Industrial Average Today
The Dow Jones Industrial Average projected a 44-point gain at the opening bell as markets prepare for new election updates, jobless data, and a busy day of earnings data. But the biggest factor in early trading was the announcement by a United Kingdom court that the UK would need a vote from Parliament in order to leave the European Union. The announcement could significantly delay Britain's departure from the EU.
Markets have been volatile in recent days, with the CBOE Volatility Index approaching 20 for the first time since mid-September. The FBI's decision to reopen the case into Hillary Clinton's private email network has hurt her in the polls and pushed the market lower. With the national voting day set for next Tuesday, investors are contemplating what a Trump victory election would mean for their portfolios. We break down the latest election news and probabilities, right here.
Last week, 265,000 Americans filed for jobless benefits, a figure that was slightly higher than the 256,000 that economists had anticipated.
The price of crude oil today is up slightly on Thursday despite news that the United States saw a record jump in crude inventories last week. Last week, crude inventories increased by 14.4 million barrels, according to the U.S. Energy Information Agency (EIA). The weekly surge dramatically outpaced the 1-million-barrel build expected by analysts. The news comes at a time when optimism over the OPEC production deal is fleeting.
The WTI crude oil price today added 0.7%, while the Brent crude oil price gained 0.9%. Money Morning Global Energy Strategist Dr. Kent Moors explains that OPEC has done something for the first time ever. And this decision could unleash the next major wave of profits for smart investors. Here's Kent's latest insight on the shocking rumor driving global oil markets.
But the big story in pre-market hours is the World Series. On Thursday night, the Chicago Cubs won their first World Series since 1908 against the Cleveland Indians. The Chicago Cubs victory parade is tentatively set for Friday, according to team owner Tom Ricketts.
Stocks to Watch Today, Nov. 3, 2016
- Shares of Valeant Pharmaceuticals International Inc. (NYSE: VRX) continue to face volatility ahead of the company's Nov. 8 earnings report. The embattled pharmaceutical company continues to face pressure after its former CEO and CFO face an investigation into an alleged accounting fraud scam. Here's everything you need to know about VRX and the company's latest scandal.
- Things just went from bad to worse for Fitbit Inc. (NYSE: FIT). Shares of FIT stock fell nearly 30% after the company fell short of Wall Street earnings expectations and issued a dismal holiday earnings forecast.
- Facebook Inc. (Nasdaq: FB) shares plunged 4.6% in pre-market hours. After the bell on Wednesday, the social media giant reported Q3 earnings, and it didn't disappoint investors. The firm reported a 55.8% jump in quarterly revenue thanks to a big gain in mobile spending. However, shares slumped after the firm projected that its advertising growth would "come down meaningfully."
- In earnings news, shares of 3D Systems Corp. (NYSE: DDD) added 1% after the firm topped Wall Street earnings expectations. The 3D-printing firm reported an earnings per share figure of $0.14 on top of $156.4 million in revenue. That topped estimates of $0.08, but fell slightly short of the $161.5 million in revenue Wall Street had expected.
- Look for additional earnings reports from Starbucks Corp. (Nasdaq: SBUX), GoPro Inc. (Nasdaq: GPRO), Activision Blizzard (Nasdaq: ATVI), Skyworks Solutions (Nasdaq: SWKS), Las Vegas Sands Corp. (NYSE: LVS), FireEye Inc. (Nasdaq: FEYE), Symantec Corp. (Nasdaq: SYMC), Weight Watchers International Inc. (NYSE: WTW), Lions Gate Entertainment Corp. (NYSE: LGF), and Hyatt Hotels Corp. (NYSE: H).
Today's U.S. Economic Calendar (all times EDT)
- Challenger Job-Cut Report at 7:30 a.m.
- Jobless Claims at 8:30 a.m.
- Productivity and Costs at 8:30 a.m.
- Gallup Good Jobs Rate at 8:30 a.m.
- Bloomberg Consumer Comfort Index at 9:45 a.m.
- PMI Services Index at 9:45 a.m.
- Factory Orders at 10 a.m.
- ISM Non-Manufacturing Index at 10 a.m.
- EIA Natural Gas Report at 10:30 a.m.
- 3-Month Bill Announcement at 11 a.m.
- 6-Month Bill Announcement at 11 a.m.
- 52-Week Bill Announcement at 11 a.m.
- Fed Balance Sheet at 4:30 p.m.
- Money Supply at 4:30 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.