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The Dow Jones Industrial Average hit another record on Tuesday as energy stocks surged thanks to rising oil prices.
The Nasdaq gained more than 1% after solid gains from Apple Inc. (Nasdaq: AAPL) and FANG stocks. Shares of Facebook Inc. (Nasdaq: FB), Amazon.com (Nasdaq: AMZN), Netflix Inc. (Nasdaq: NFLX), and Alphabet Inc. (Nasdaq: GOOGL) all climbed.
Let's look at the final numbers Tuesday for the Dow, S&P 500, and Nasdaq:
Dow Jones: 18,923.06; 54.37; 0.29%
S&P 500: 2,180.39; 16.19; 0.75%
Nasdaq: 5,275.62; 57.23; 1.10%
Now, here's a look at today's most important market events and stocks, plus a preview of Wednesday's economic calendar.
DJIA Today: The Dow Roars Again as OPEC Gives Boost to Crude Prices
The Dow Jones added another 54 points on Tuesday thanks to a rally in energy stocks and utility stocks. The S&P 500 energy sector added 2.5%, while utilities gained more than 1.6%. The technology sector also received a big boost after another big day from FANG stocks.
The price of crude oil rallied as much as 5% today after a reversal of expectations regarding OPEC's upcoming meeting in Vienna, Austria. Traders now anticipate that the global oil cartel will reach an agreement to slash production in order to address a building supply glut. The news pushed shares of global multinational oil companies higher. Shares of both Exxon Mobile Corp. (NYSE: XOM) and Chevron Corp. (NYSE: CVX) gained nearly 2%.
The WTI crude oil price today added 5.4%, while the Brent crude oil price dipped 5.2%.
It was a very strong day for retail stocks. In October, consumers boosted spending on goods ranging from vehicles to household items. The Commerce Department announced that retail sales increased 0.8% in October. The data indicated that improved economic optimism will add additional fuel to the Federal Reserve's case for an interest rate hike in December.
But the big news today is the Trump presidency. The president-elect has proposed a massive infrastructure spending program designed to rebuild the nation's road, bridges, and other lines of transit. That could be a huge boost to industrial stocks around the country as Congress pours up to a $1 trillion into the economy. Money Morning Capital Wave Strategist Shah Gilani explains that choosing the best infrastructure stocks for a Trump presidency requires a strategy. He tells you how to invest the right way, right here.
Top Stock Market News Today, Nov. 15, 2016
- Shares of Home Depot Inc. (NYSE: HD) fell despite news that the company topped Wall Street earnings expectations for top and bottom line estimates and hiked its 2016 forecast. The home retailer reported earnings per share of $1.58, beating consensus forecasts by $0.02. The firm reported $23.15 billion in revenue and said that its full-year sales are expected to increase by 6.3%. The downtick could be tied to a significant shift in the housing market over the last week. Following the election of Trump, mortgage rates have surged, raising concerns that increased borrowing costs could hinder a strengthening market.
- In deal news, Warren Buffett is betting big on the U.S. airline industry. Berkshire Hathaway Inc. (NYSE: BRK.A) just disclosed a $1.2 billion investment in the sector, according to regulatory filings. The firm has invested in American Airlines Group Inc. (Nasdaq: AAL), Delta Air Lines Inc. (NYSE: DAL), United Continental Holdings Inc. (NYSE: UAL), and Southwest Airlines Co. (NYSE: LUV). All four stocks were up more than 3.2% early this morning. This is a surprising reversal for Buffett, who has long chosen the rail industry over the airline industry.
- Social media giant Facebook Inc. (Nasdaq: FB) added nearly 2% on news that the "WhatsApp" platform will be adding a video calling feature. Not only will 1 billion users now have access to low-cost video chat, but the encrypted nature of the technology will make it impossible for Facebook, the government, or any other eavesdropper from listening in on your calls. Facebook stock has been sliding in recent weeks, but we're not panicking. Click here to read why FB stock is one of the top stocks to own right now.
- Today's big winner came in the Chinese e-commerce market. Shares of JD.com Inc. (Nasdaq ADR: JD) surged more than 12% on news that the company crushed third-quarter sales expectations. The company reported a 38% jump in revenue thanks to a big surge in customer account activity.
- After the bell, look for additional earnings reports from Agilent Technologies Inc. (NYSE: A) and MACOM Technology Solutions Holdings Inc. (Nasdaq: MTSI).
Wednesday's U.S. Economic Calendar (all times EST)
- St. Louis Federal Reserve Bank President James Bullard speaks at 3 a.m.
- MBA Mortgage Applications at 7 a.m.
- Minneapolis Federal Reserve Bank President Neel Kashkari speaks at 7:30 a.m.
- PPI-FD at 8:30 a.m.
- Industrial Production at 9:15 a.m.
- Atlanta Fed Business Inflation Expectations at 10 a.m.
- Housing Market Index at 10 a.m.
- EIA Petroleum Status Report at 10:30 a.m.
- Treasury International Capital at 4 p.m.
- Philadelphia Federal Reserve Bank President Patrick Harker speaks at 5:30 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.