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This morning, the Dow Jones Industrial Average was sliding as investors prepare for millions of Americans to head to the polls.
The elections are weighing on the market. But that can be a good thing for educated investors who understand the technical. Money Morning Technical Trading Specialist D.R. Barton breaks down the latest speculation about the election and what investment opportunities are forming.
Money Morning Chief Investment Strategist Keith Fitz-Gerald, a 34-year veteran of global markets, sees a "beautiful setup for a stock market rally" in the making after this election.
Here's the key post-election indicators to watch starting today.
On Monday, the Dow Jones surged 371 points after the FBI cleared Hillary Clinton in its latest email probe. In a letter to Congress on Sunday, FBI Director James Comey said that the agency had "not changed its conclusions" that it reached in July about Clinton's intent to send sensitive government material across her private email server.
Overall, risk appetite has increased with the announcement. Here's why.
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Let's take a look at Monday's Stock Market Numbers:
Dow Jones: 18,259.74; 371.46; 2.08%
S&P 500: 2,131.52; 46.34; 2.22%
Nasdaq: 5,166.17; 119.80; 2.37%
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 10-point decline this morning as investors await the results of today's national election. Market expectations call for a Clinton victory over Donald Trump. According to FiveThirtyEight, the odds of a Clinton victory sits at 71%. However, many don't expect a down-ballot sweep for Democrats. Current projections call for Democrats to win the Senate but Republicans to win the House of Representatives.
Money Morning Global Credit Strategist Michael Lewitt explains that the markets don't want Donald Trump, but they can't handle Hillary Clinton. That's why he recommends that you follow this strategy to make money no matter who wins today.
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Valeant Pharmaceuticals International Inc. (NYSE: VRX) stock cratered another 8.2% this morning to a 52-week low after the Canadian pharmaceutical firm fell well short of Wall Street earnings expectations. VRX stock fell to its lowest level since 2010 after the firm slashed its full-year outlook. Many Wall Street titans continue to bleed cash after doubling and even tripling down on this failing company, but Money Morning Global Credit Strategist Michael Lewitt has long argued that Valeant is headed toward bankruptcy.
The price of crude oil today is on the move during the U.S. election. Dr. Kent Moors, Money Morning's Global Energy Strategist, notes that the oil market is currently seeing a high level of volatility because of the election. The crude oil volatility index hit 45.34 on Monday, its highest level since September. Here's Kent's latest insight on crude prices and today's big election.
The WTI crude oil price today gained roughly 1.4%, while the Brent crude oil price added 1.2%.
Stocks to Watch Today, Nov. 8, 2016
- In deal news, U.S. state attorneys from seven states are banding together to join an antitrust probe to investigate the planned merger between El Du Pont De Nemours and Co. (NYSE: DD) and Dow Chemical Co. (NYSE: DOW). Another group of attorneys are working together to dig deeper into the planned $66 billion merger between Bayer AG (ADR) (OTCMKTS: BAYRY) and Monsanto Company (NYSE: MON).
- In earnings news, CVS Health Corp. (NYSE: CVS) cratered 14.8% despite news that it topped Q3 earnings. The firm said that revenue increased by 15% compared to the same period last year. Company earnings increased by 22%. However, the stock slumped after the company slashed its 2016 adjusted earnings forecast. The company raised new concerns about prescription growth and changes by healthcare companies that will migrate away from their pharmacies in the fourth quarter. Shares of Walgreens Boots Alliance (Nasdaq: WBA) fell 6% on the news.
- Look for additional earnings reports from TripAdvisor Inc. (Nasdaq: TRIP), Jazz Pharmaceuticals PLC (Nasdaq: JAZZ), Amdocs Ltd. (NYSE: DOX), D.R. Horton Inc. (NYSE: DHI), Copa Holdings SA (NYSE: CPA), AeRcap Holdings N.V. (NYSE: AER), Wayfair Inc. (NYSE: W), and SeaWorld Entertainment Inc. (NYSE: SEAS).
Today's U.S. Economic Calendar (all times EST)
- NFIB Small Business Optimism Index at 6 a.m.
- Chicago Federal Reserve President Charles Evans Speaks at 7:45 a.m.
- Redbook at 8:55 a.m.
- JOLTS at 10 a.m.
- Four-Week Bill Auction at 11:30 a.m.
- 52-Week Bill Auction at 11:30 a.m.
- Chicago Federal Reserve President Charles Evans Speaks at 12:20 p.m.
- Three-Year Note Auction at 1 p.m.
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About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.