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This morning, the Dow Jones Industrial Average was on pace to rise for its seventh consecutive trading session as oil prices rebounded and investors continue to enjoy the Donald Trump stock market rally.
It will be a very busy day of earnings reports as a number of S&P 500 leaders in the retail space report third-quarter earnings.
On Monday, the Dow added 21 points as financial stocks continued to rise on the confidence fueled by a Trump presidency and a potential rate hike by the Federal Reserve.
Let's take a look at Monday's stock market numbers:
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 look at Tuesday's economic calendar.
What's Ahead for the Dow Jones Industrial Average Today
The Dow Jones Industrial Average projected an 18-point gain after the markets hit yet another all-time record high on Monday afternoon.
It will be a busy day for members of the Federal Reserve. Throughout the day, four members of the U.S. central bank will offer their insight on issues ranging from monetary policy to the state of the American economy. Investors are curious what the leaders think about the possibility of an interest-rate hike in a few weeks after the election of Donald Trump. On Monday, the U.S. dollar rate soared to an 11-month high as markets increasingly expect a 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 oil rallied in pre-market hours on expectations that global oil cartel OPEC will announce production cuts later this month in order to reduce a building supply glut. The WTI crude oil price today gained 3.1%, while the Brent crude oil price gained 3.0%. The gains came after the Saudi Arabian energy minister said it was imperative that the cartel reach a deal. Prices had been cratering in recent sessions on the prospects of increased U.S. crude production and an expectation that OPEC will not be able to meet its cut targets.
The big story this morning is the pending Trump presidency. With less than 100 days until Trump enters the White House, some political opponents argue that faithless electors can still take the presidency away from him and send Hillary Clinton to the White House in 2017.
Is that possible? We break down that scenario, right here.
Meanwhile, investors are looking for the best stocks to buy now. There's a huge new opportunity for defense stocks before Trump's sworn in, according to Money Morning Director of Tech & Venture Capital Research Michael A. Robinson. [Editor's Note: Read all about this stock, right here.]
Stocks to Watch Today, Nov. 15, 2016
- 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 Airlines Inc. (NYSE: DAL), United Continental Holdings Inc. (NYSE: UAL), and Southwest Airlines Co. (NYSE: LUV). All four stocks were up more than 3.2% in pre-market hours. This is a surprising reversal for Buffett, who has long chosen the rail industry over the airline industry.
- In earnings news, shares of Home Depot Inc. (NYSE: HD) added more than 1.1% after the company beat Wall Street earnings and revenue expectations. The home retailer reported an EPS 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%.
- Look for additional earnings reports from Dick's Sporting Goods Inc. (NYSE: DKS), The TJX Cos. (NYSE: TJX), Stratasys Inc. (Nasdaq: SSYS), Agilent Technologies Inc. (NYSE: A), Mobileye NV (Nasdaq: MBLY), Teva Pharmaceutical Ltd. (NYSEADR: TEVA), JD.com Inc. (Nasdaq: JD), Zebra Technologies Inc. (Nasdaq: ZBRA), and Spire Inc. (NYSE: SR).
Today'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.