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The Dow Jones Industrial Average closed slightly higher on Friday as the markets celebrated another record week.
The Dow still finished near an all-time closing high as investors continued to show increased optimism over the economic ramifications of a Trump presidency. During the annual DealBook Conference in New York, corporate leaders lined up to admit they were wrong about the market reaction to Trump's victory. Hedge fund manager Bill Ackman called himself a "Donald Trump" bull and said that he is optimistic about the U.S. economy.
Let's look at the final numbers Friday for the Dow, S&P 500, and Nasdaq:
Dow Jones: 18,847.60; 39.72; 0.21%
S&P 500: 2,164.42; -3.06; -0.14%
Nasdaq: 5,237.11; 28.32; 0.54%
Now, here's a look at today's most important market events and stocks, plus a preview of Monday's economic calendar.
DJIA Today: The Dow Finished Higher, Closing Out a Record Week
The Dow Jones finished up 39 points on Friday as investors took a timeout from this week's post-election rally.
Earlier today, Federal Reserve Vice Chair Stanley Fischer said that he expects economic growth to gain strength, justifying the potential of gradual interest rate hikes. Despite that optimism, Fischer admitted that the central bank needed to examine the long-term borrowing practices of the American government. According to the CME's FedWatch Tool, the markets see a 76.3% chance that the central bank raises interest rates in December. The market has also begun to price in the possibility of a second rate hike in mid to late 2017.
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Gold prices took a pounding this afternoon as the U.S. dollar strengthened and the odds of a rate hike increased. Gold prices fell more than 3.2%, while silver prices plunged a stunning 7.3%. With volatility falling and investors pouring back into stocks, here's where silver heads next.
The price of crude oil was falling hard again on Friday as concerns about OPEC again weighed on trade sentiment. Markets are increasingly worried that the global oil cartel will be unable to find common ground and ensure that it caps production to reduce the probability of a global supply glut. The WTI crude oil price today fell 2.4%, while Brent crude oil dipped 2.1%.
But the big news is the Trump presidency and the wealth of information that accompanied the post-election results. 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.
According to reports, the Trump administration is eyeing a partial repeal of not just the Affordable Care Act, but also the notorious Dodd-Frank Act. And that's not all Trump is planning. Money Morning Capital Wave Strategist Shah Gilani outlines the big changes ahead for the Trump administration and how investors are going to make money. Check it out, here.
Top Stock Market News Today, Nov. 11, 2016
- Investment bank Deutsche Bank (AG) (USA) (NYSE: DB) may be excited about President-elect Donald Trump's upcoming administration. DB stock gained nearly 3% today after Barclays Plc. (NYSE: BCS) said that it expects the German investment bank to receive a better deal from Trump's Department of Justice. According to reports, Democratic officials are attempting to settle before Obama leaves office, demanding $14 billion. However, the company may delay its settlement until Trump takes office.
- Who doesn't like a Trump presidency? Shareholders of Amazon.com Inc. (Nasdaq: AMZN). Shares of the e-commerce giant have continued to slide since Trump won, dipping another 0.9% on the day. Donald Trump has criticized the company and its CEO Jeff Bezos for not paying enough in taxes. It was 2015 when Trump suggested that the company's stock would crash if it paid "fair taxes."
- Shares of Grubhub Inc. (Nasdaq: GRUB) are under pressure due a public relations fallout tied to an email sent by its CEO to employees about the presidential election. In the email, CEO Matt Maloney said that everyone "with Trump's rhetoric and hateful messages should resign." The email was taken as a demand for resignation from anyone who voted for Trump, which could open the company up to an investigation regarding the "Statutory Protection Against Employer Retaliation." Shares of GRUB stock fell 3.5% on the day.
- Shares of Alibaba Group Holding Ltd. (NYSE: BABA) fell 0.9% despite news that the company reported record sales during its annual Singles' Day. The Chinese e-commerce giant sold $5 billion in merchandise this morning during its annual shopping holiday Singles' Day, which celebrates single men and women on 11/11. Here's everything you need to know about Singles' Day, the biggest event of the year for BABA stock.
- Meanwhile, shares of JCPenney Co. Inc. (NYSE: JCP) fell more than 8.8% after the retail company fell short of Wall Street revenue expectations. The firm surprised investors by reporting EPS of -$0.21 on $2.85 billion in revenue. Wall Street anticipated an EPS loss of -$0.22 on top of $2.94 billion in revenue.
- After the bell, look for an earnings report from Atwood Oceanics Inc. (NYSE: ATW).
Monday's U.S. Economic Calendar (all times EST)
- Week Bill Announcement at 11 a.m.
- 3-Month Bill Auction at 11:30 a.m.
- 6-Month Bill Auction at 11:30 a.m.
- Dallas Federal Reserve Bank Robert Kaplan Speaks at 1:20 p.m.
- Richmond Federal Reserve Bank President Jeffrey Lacker Speaks at 4:30 p.m.
- San Francisco Federal Reserve Bank President John Williams speaks at 6:30 p.m.
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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.