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The Dow Jones Industrial Average surged Thursday as exuberance about a Donald Trump presidency sent stocks to all-time records. That's right, the Dow Jones hit an all-time high as investors continue to pour money into equities.
Just days ago, pundits were predicting that Trump would fuel a massive sell-off that would cripple the equity markets. Now, we're seeing stocks at levels never seen before in the history of the markets.
Let's look at the final numbers Thursday for the Dow, S&P 500, and Nasdaq:
Dow Jones: 18,807.88; 218.19; 1.17%
S&P 500: 2,167.48; 4.22; 0.20%
Nasdaq: 5,208.80; -42.28; -0.81%
Now, here's a look at today's most important market events and stocks, plus a preview of Friday's economic calendar.
DJIA Today: The Dow Surges 218 Points As Trump Euphoria Sets In
The Dow Jones surged another 218 points to an all-time closing high after investors erased concerns about Donald Trump's presidential election victory. The market swing is reminiscent of the sharp downturn and strong rebound of the global markets after Britain voted in June to leave the European Union. With markets on a strong run, our readers are now asking us, "What are the best stocks to buy when Trump is president?" [Editor's Note: We outline three must-own defense stocks, here.]
On the governmental front, investors are eyeing reports that Trump may consider JPMorgan Chase & Co. (NYSE: JPM) CEO Jamie Dimon for the role of Treasury Secretary. But that wasn't what sent the financial sector up another 4% today. It is the expectation that President-elect Trump will not hinder an interest rate hike in December and expectations that Trump's proposed fiscal policy plans with Congress will spur greater inflation.
Special Report: Cannabis Is the Gold Rush of the 21st Century — 30 Stocks to Invest in Now. Read More…
New President-elect Donald Trump has stressed his full-throttled opposition to Obamacare. Despite the overwhelming support to repeal the bill, Trump must find a way to ensure that it is replaced by a healthcare plan that works for all Americans. There are three ways Trump can end Obamacare with his newfound executive power. Check them out, right here.
The price of crude oil was falling today as traders focused on OPEC's production deal as the global energy cartel plans to meet later this month. Doubts remain over whether OPEC will be able to get countries like Russia to join its production cuts or to prevent increased squabbling between Saudi Arabia and Iran.
The WTI crude oil price today fell 1.7%, while the Brent crude oil price dipped 1.4%.
But the big news is again the U.S. election. On Thursday, President-elect Donald Trump met in the Oval Office with President Barack Obama to discuss transition strategy and unity between the two political parties. It was the first time that the two ever had a conversation and met face-to-face. Washington is still shocked by the Republican sweep of the White House and the legislative branch. In fact, one of the most surprising facts about the race was that Hillary Clinton outspent Trump by a 2:1 margin. Here's a breakdown of campaign money, right here.
Of course, investors are looking for the best way to capitalize on the Trump presidency. That's why investors should read more about the best investments for when Trump is president.
Money Morning Director of Tech & Venture Capital Research Michael A. Robinson said U.S. and global markets will likely experience some instability over the next several weeks as Tuesday's election results sink in. But Robinson explains that he has found the perfect investment to own over the next four years as Trump faces a relentless challenge on the global front. [Editor's Note: Read all about this profit-gushing fund, right here.]
Top Stock Market News Today, Nov. 10, 2016
- In earnings news, shares of Macy's Inc. (NYSE: M) rallied more than 5% despite news that the company fell short of Wall Street earnings expectations. The firm reported earnings per share (EPS) of $0.17 on top of $5.626 billion in revenue. Analysts had expected an EPS of $0.41 on $5.64 billion in revenue. Both figures are a steep decline from previous profit and revenue levels in the same quarter of 2015.
- Shares of Walt Disney Co. (NYSE: DIS) are in focus as the global entertainment company prepares to release earnings after the bell. Wall Street analysts expect that the company will see a small decline in profits compared to the same quarter in 2015. The big question is how much the company has been able to defend its balance sheet from a sharp decline in cable subscriptions on ESPN and ratings for Monday Night Football.
- Meanwhile, the biotech sector continues to rally following the defeat of Hillary Clinton. Shares of Pfizer Inc. (NYSE: PFE) rallied 4.2% after Reuters reported the company plans to sell or spin off its consumer health division, which includes brands like Chapstick and Advil. Markets expect that a deal could fetch the company at least $14 billion. The iShares Nasdaq Biotechnology ETF (Nasdaq: IBB) gained another 1.6% as investors in the sector cheer the Trump upset.
- It was another brutal day for gun stocks. Sturm Ruger & Co. Inc. (NYSE: RGR) and Smith & Wesson Holding Corp. (Nasdaq: SWHC) fell by 8.8% and 12.1%, respectively. With Republicans firmly in control of the executive, legislative and soon judicial branches, don't expect any gun-control reforms or threats to the Second Amendment in the next four years.
- After the bell, look for earnings reports from NVIDIA Corp. (Nasdaq: NVDA), Michael Kors Holdings Ltd. (NYSE: KORS), and Nordstrom Inc. (NYSE: JWN).
Friday's U.S. Economic Calendar (all times EST)
- Consumer Sentiment at 10 a.m.
- Stanley Fischer speaks at 11 a.m.
- Baker Hughes Rig Count at 1 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.