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The Dow Jones Industrial Average hit an all-time high and surpassed the 19,000 level for the first time in its history. Financial stocks and telecom stocks boosted the Dow to new highs.
However, the healthcare sector had its largest decline – 1.5% — in a month. Shares of Medtronic Inc. (NYSE: MDT) fell more than 10% after the company slashed its full-year earnings forecast.
Let's look at the final numbers Tuesday for the Dow, S&P 500, and Nasdaq:
Dow Jones: 19,023.87; 67.18; 0.35%
S&P 500: 2,202.94; 4.76; 0.22%
Nasdaq: 5,386.35; 17.49; 0.33%
Now, here's a look at today's most important market events and stocks, plus a preview of Wednesday's economic calendar.
DJIA Today: Dow Hits an All-Time High; Oil Prices Under Pressure on OPEC Deal
The Dow Jones gained another 67 points and finished the day at an all-time closing high.
It's a good time to be Warren Buffett. The billionaire investor has seen his net worth increase by $3.8 billion since the 2016 election. The secret: Buffett has big stakes in banking stocks like Wells Fargo & Co. (NYSE: WFC), Goldman Sachs Group Inc. (NYSE: GS), and M&T Bank Corp. (NYSE: MTB). The sector has surged in the wake of the 2016 election as investors anticipate that the Federal Reserve will soon increase interest rates.
Tomorrow, investors will look through the minutes from the most recent meeting of the Fed Open Market Committee (FOMC). According to the CME Group's FedWatch Tool, the probability that the Fed hikes rates in December is currently higher than 90%.
The price of crude oil was under pressure this afternoon as investors speculate on OPEC's production deal. According to Reuters, the global oil cartel is set to announce potential cuts of 4.0% to 4.5% of its output. However, some analysts are concerned given the hesitation by producing nations like Iran and Iraq. Money Morning Global Energy Specialist Dr. Kent Moors has been traveling to the Middle East and says that there are two other factors that could hold up the deal. Here's Moors' latest reporting from the ground in Abu Dhabi.
The WTI crude oil price today dipped 0.2%, while the Brent crude oil price added 0.4%.
Gold prices were ticking higher despite increased expectations for a rate hike in December. Money Morning Resource Specialist Peter Krauth offers his insight on where gold prices are heading in the months ahead. Click here for his latest gold price forecast.
But the big news today is happening in the back offices of a Wall Street private-equity shop. You won't find this report on CNBC or in The Wall Street Journal this week. But Wall Street and the U.S. government are concocting a plan to start socializing your retirement plan. This isn't some far-out reality. It's coming down the pipeline, and our team at Money Morning breaks down a scheme to socialize your retirement savings accounts. This could be the largest government-sanctioned robbery of investors' money in the history of the country.
Top Stock Market News Today, Nov. 22, 2016
- In earnings news, shares of Hormel Foods Corp. (NYSE: HRL) gained more than 2.8% after the firm topped Wall Street earnings expectations. The company also said it expects to achieve a full-year profit between $1.68 and $1.74 a share.
- Earnings news was rough for Palo Alto Networks Inc. (Nasdaq: PANW). Shares plunged more than 13% after the firm reported a lackluster earnings report. The firm topped earnings per share (EPS) estimates but said that it was well below sales expectations. The company also slashed its forward-earnings guidance, a statement that led traders to sell off the stock.
- One of the best defense stocks to buy now could benefit heavily from a hawkish President Donald Trump. Read all about the stock that is poised for big gains after Trump takes office and plans a record defense spending plan. Check it out, right here.
- Look for additional earnings reports from Hewlett Packard Co. (NYSE: HPQ), GameStop Corp. (NYSE: GME), and Urban Outfitters Inc. (Nasdaq: URBN).
Wednesday's U.S. Economic Calendar (all times EST)
- MBA Mortgage Applications at 7 a.m.
- Durable Goods Orders at 8:30 a.m.
- Jobless Claims at 8:30 a.m.
- FHFA House Price Index at Bullet at 9 a.m.
- PMI Manufacturing Index Flash at 9:45 a.m.
- Bloomberg Consumer Comfort Index at 9:45 a.m.
- New Home Sales at 10 a.m.
- Consumer Sentiment at 10 a.m.
- EIA Petroleum Status Report at 10:30 a.m.
- 3-Month Bill Announcement at 11 a.m.
- 6-Month Bill Announcement at 11 a.m.
- EIA Natural Gas Report at 12 p.m.
- 7-Year Note Auction at 1 p.m.
- FOMC Minutes at 2 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.