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The Dow Jones Industrial Average was pushing higher again on Monday as investor optimism continued to soar after last week's victory by Republican Donald Trump.
The Dow is on a six-day winning streak and is sitting at an all-time high. This is the Dow's best run since 2011.
Money Morning Chief Investment Strategist Keith Fitz-Gerald has an answer to the question that many investors are asking after the election: "Now what?"
Fitz-Gerald outlines the best investments you can make right now and answers questions about gold, interest rates, and more, right here.
Meanwhile, the Nasdaq slumped after a sharp decline by Apple Inc. (Nasdaq: AAPL) and other tech stocks. Shares of AAPL stock fell more than 2.3%, while Facebook Inc. (Nasdaq: FB), Amazon.com Inc. (Nasdaq: AMZN), Netflix Inc. (Nasdaq: NFLX), and Alphabet Inc. (Nasdaq: GOOGL) all finished down on the day.
Let's look at the final numbers Monday for the Dow, S&P 500, and Nasdaq:
Dow Jones: 18,868.69; 21.03; 0.11%
S&P 500: 2,164.20; -0.25; -0.01%
Nasdaq: 5,218.40; -18.72; -0.36%
Now, here's a look at today's most important market events and stocks, plus a preview of Tuesday's economic calendar.
DJIA Today: The Dow Hits Sixth-Straight Gain, Sets New All-Time Closing High
The Dow Jones added 21 points as financial stocks continued to rise on the prospect of a Trump presidency and a potential rate hike by the Federal Reserve. The U.S. dollar rate today soared to an 11-month high as markets continue to expect an interest rate hike at the next FOMC meeting. According to CME Group's FedWatch Tool, the markets project a 91% probability of a rate hike next month.
The price of crude oil was back near a three-month low under $43 per barrel. Crude prices are falling again as worries accelerate that OPEC's global production deal set in September could quickly fall apart before the global oil cartel meets in Vienna, Austria, later this month. On Friday, OPEC announced that it hit a new monthly production level in October and forecasts an even greater supply output than the one projected last week by the International Energy Agency. The expected output has investors picturing another massive global glut like the one earlier this year that drove crude prices under $30 per barrel.
The WTI crude oil price today added 0.1%, while the Brent crude oil price dipped 0.5%.
But the big news today is again the impact of Donald Trump on the global markets. This morning, investment bank Morgan Stanley (NYSE: MS) upgraded two major steel stocks thanks to Trump's economic plans, which include tax breaks, possible protectionist policies, and calls for increased infrastructure spending. After their respective upgrades, shares of AK Steel Holding Corp. (NYSE: AKS) added 7.5%, while United States Steel Corp. (NYSE: X) added more than 6.3%.
Trump will have a profound impact on the U.S. economy and the stock market heading into 2017. To help investors break down Trump's expected impact, we put together a must-read guide outlining Trump's policies, stock-market winners and losers, and profiles of his economic team.
Top Stock Market News Today, Nov. 14, 2016
- Shareholders of Harman International Industries Inc. (NYSE: HAR) are cheering the stock's 25% pop on Monday. This morning, Samsung Electronics Co. Ltd. (OTCMKTS: SSNLF) announced it will purchase the electronics firm in a deal worth about $8 billion. Samsung aims to improve its standing in the automotive electronics technology business through the deal. The company is still reeling from a public relations nightmare involving exploding Galaxy Note 7 devices that caused a series of fires and a massive product recall.
- Shares of Kate Spade & Co. (NYSE: KATE) rallied more than 9% after an activist hedge fund urged company management to sell the firm. Caerus Investors cited concerns about the firm's profit margins compared to its competitors as a reason for a possible sale.
- Shares of Ceragon Networks Ltd. (Nasdaq: CRNT) gained more than 11% after the company topped Wall Street earnings expectations. The company reported earnings per share (EPS) of $0.06 on top of $79.1 million in revenue. The consensus analyst forecast called for an EPS of $0.04 on $76.6 million in revenue.
- After the bell, look for an earnings report from Advance Auto Parts Inc. (NYSE: AAP), ESCO Technologies Inc.(NYSE: ESE), Guidewire Software Inc. (Nasdaq: GWRE), Zoe's Kitchen Inc. (NYSE: ZOES), Woodward Inc. (NYSE: WWD).
Tuesday's U.S. Economic Calendar (all times EST)
- Boston Federal Reserve Bank President Eric Rosengren speaks at 7:30 a.m.
- Federal Reserve Governor Daniel Tarullo speaks at 8:05 a.m.
- Retail Sales at 8:30 a.m.
- Empire State Manufacturing Survey at 8:30 a.m.
- Import and Export Prices at 8:30 a.m.
- Redbook at 8:55 a.m.
- Business Inventories at 10 a.m.
- Four-Week Bill Auction at 11:30 a.m.
- Dallas Federal Reserve Bank President Rob Kaplan speaks at 1:30 p.m.
- Federal Reserve Vice Chair Stanley Fischer speaks at 1:30 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.