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This morning, the Dow Jones Industrial Average was sliding in pre-market hours after Donald Trump won the presidential election. Trump will become the 45th President of the United States in January, news that caused a sharp downturn in the futures markets during last night's election. After Trump's victory, gold prices have surged above $1,300 per ounce, while the Mexican peso hit a record low against the U.S. dollar.
On Tuesday, the Dow gained 72 points as investors placed their bets on Hillary Clinton winning the U.S. election. The markets have since pared those gains and after the surprise election results.
Let's take a look at Tuesday's stock market numbers:
Dow Jones: 18,332.50; 72.90; 0.40%
S&P 500: 2,139.54; 8.02; 0.38%
Nasdaq: 5,193.49; 27.32; 0.53%
Now, here's a look at today's most important market events and stocks, plus a look at Wednesday's economic calendar.
What's Ahead for the Dow Jones Industrial Average Today
The Dow Jones Industrial Average projected an over 200-point plunge after GOP nominee Donald Trump stunned Wall Street to pull off a victory in the 2016 election. According to FiveThirtyEight, Clinton had a 71.4% chance of winning last night. But Trump overcame the odds and won the key states of Pennsylvania, Michigan, and Ohio.
At one point during the final hours last night, futures fell nearly 800 points, a downturn that was similar to June's referendum in which Britain voted to leave the European Union. However, the markets appear to be paring Monday's gains as investors contemplate the economic implications of a Trump presidency.
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Based on the races that have been called so far, Trump has earned 289 electoral votes compared to Hillary Clinton's 218. Three states – Minnesota, Michigan, and New Hampshire – are still too close to call. Clinton appears to have won the national vote. So, how should you invest this morning? Money Morning Global Credit Strategist Michael Lewitt offers you a way to make money during the day after.
This morning's winners include Boeing Co. (NYSE: BA), which was gaining in pre-market hours.
The price of crude oil today pared losses after the conclusion of the U.S. election. Investors were also eyeing the progress of OPEC's production deal and the nuclear deal between Iran and the United States. This morning, Iranian officials said that President-elect Trump should remain committed to the nuclear deal.
Finally, on Tuesday afternoon, the American Petroleum Institute reported that U.S. crude inventories increased by 4.4 million barrels last week. That is much higher than the 1.3-million-barrel hike that analysts expected. The WTI crude oil price today gained roughly 0.1%, while the Brent crude oil price added 0.4%.
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. Here's his latest insight on crude prices and today's big election.
Stocks to Watch Today, Nov. 9, 2016
- Valeant Pharmaceuticals International Inc. (NYSE: VRX) is bouncing off a 52-week low, gaining 3.7% in pre-market hours. The stock fell more than 21% Tuesday after the Canadian pharmaceutical firm fell well short of Wall Street earnings expectations. The firm also 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 hurling toward bankruptcy.
- Keep an eye on Mylan Inc. (NYSE: MYL) as the pharmaceutical giant plans to report fiscal third-quarter earnings. Wall Street anticipates that the company will report an EPS of $1.50 on top of $3.23 billion in revenue. Investors are curious about the impact of its EpiPen controvers, which dragged its CEO to Capitol Hill for a serious grilling.
- Look for additional earnings reports from Shake Shack Inc. (NYSE: SHAK), The Wendy's Co. (NYSE: WEN), CROCS Inc. (Nasdaq: CROX), SunPower Corp. (Nasdaq: SPWR), Viacom Inc. (Nasdaq: VIAB), TASER International Inc. (Nasdaq: TASR), and Dish Network Corp. (Nasdaq: DISH).
Today's U.S. Economic Calendar (all times EST)
- MBA Mortgage Applications at 7 a.m.
- Wholesale Trade at 10 a.m.
- EIA Petroleum Status Report at 10:30 a.m.
- 10-Year Note Auction at 1 p.m.
- Minneapolis Federal Reserve Bank President Neel Kashkari speaks at 1:30 p.m.
- San Francisco Fed Bank President John Williams speaks at 9 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.