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Today is the final trading day of November, and the Dow Jones Industrial Average is pushing higher again.
It's been a wild month that has seen the S&P 500 gain more than 3.7% despite Donald Trump's presidency, new concerns about China's financial system, speculation on OPEC's production meeting, and structural challenges in European markets.
On Tuesday, the Dow added 54 points after an active day of economic data that showed President-elect Donald Trump would inherit a strengthening economy. According to the U.S. Commerce Department, Q3 GDP expanded at a rate of 3.2%.
Dow Jones: 19,097.90; -54.24; -0.28%
S&P 500: 2,201.72; -11.63; -0.53%
Nasdaq: 5,386.81; -30.11; -0.56%
Here's a look at today's most important market events and stocks, plus a look at Wednesday's economic calendar.
What's Ahead for the Dow Jones Industrial Average Today
The Dow Jones Industrial Average projected a 37-point gain as oil prices rallied on OPEC production news and investors awaited private sector jobs data from Automatic Data Processing. According to Estimize, analysts expect that the private sector created 175,000 jobs in November. This figure will set the tone for Friday's release of the official November unemployment number from the U.S. Labor Department.
The Federal Reserve is back in focus when three members of the central bank offer speeches on monetary policy. These talks could provide some clues into the timing of the central bank's next effort to raise interest rates. The December FOMC meeting kicks off in two weeks and offers the central bank the chance to raise rates for the first time since 2015.
The price of crude oil was surging this morning on the prospects of a deal at the November OPEC meeting. The global cartel's production meeting kicked off today, and the stakes are high for the global energy market. At today's meeting, the cartel will try to reach its first official production agreement since 2008 in a bid to raise global crude oil prices to at least $55 per barrel.
Later today, watch the U.S. Energy Information Administration, which will release the weekly inventory levels in the United States. Any drawdown in domestic crude could support today's rally.
The WTI crude oil price today surged 7.7%, while the Brent crude oil price added 7.8% to top $50 per barrel. According to reports happening in Vienna, Austria, Saudi Arabia is expected to experience a big cut to its production to get its cartel rival Iran to accept a deal. Money Morning Global Energy Strategist Dr. Kent Moors says that this deal is close to happening, but if you want to make real money, you should start with these investments.
The big news today is taking place in President-elect Donald Trump's cabinet. Trump has nominated a former Goldman Sachs Group Inc. (NYSE: GS) head, Steven Mnuchin, to run the U.S. Treasury Department. Right away, Mnuchin signaled his desires to slash corporate taxes in the United States.
"By cutting corporate taxes, we're going to create huge economic growth, and we'll have huge personal income," Mnuchin told CNBC in an interview this morning. Mnuchin was Trump's top finance adviser during his campaign and has no government experience.
Stocks to Watch Today, Nov. 30, 2016
- Expect heavy trading volumes for oil companies today thanks to the positive winds from OPEC's production deal. Shares of Chevron Corp. (NYSE: CVX) gained more than 2.1% in pre-market hours. Exxon Mobil Corp. (NYSE: XOM) added nearly 2.5%.
- Donald Trump is crowing about the announcement by Carrier, a division of United Technologies Inc. (NYSE: UTX), that it will keep roughly 1,000 jobs in Indiana. The company had said it would relocate 2,000 jobs to Mexico. Although this is seen as an important validation of a campaign promise by Trump, it remains unclear what will happen to the other 1,000 positions at risk.
- In deal news, shares of Shares of Linde (OTCMKTS: LNEGY) and Praxair Inc. (NYSE: PX) are back in focus on news that the companies have renewed talks about a possible merger. The world's two largest suppliers of industrial gasses had been rising earlier this year on speculation of a deal. However, discussions popped like a balloon in September, sending shares back to earth.
- In earnings news, shares of American Eagle Outfitters (NYSE: AEO) plunged more than 11.5% after the company topped Wall Street earnings expectations but lowered its forward guidance. Meanwhile, shares of Splunk Inc. (Nasdaq: SPLK) added 6.1% after the company reported an adjusted profit of $0.12, topping Wall Street expectations of $0.04. The firm also beat revenue expectations and hiked its full-year outlook.
- Look for additional earnings reports from Box Inc. (NYSE: BOX), Guess? Inc. (NYSE: GES), PVH Corp. (NYSE: PVH), Synopsys Inc. (Nasdaq: SNPS), La-Z-Boy (NYSE: LZB), and Tuniu Corp. (Nasdaq: TOUR).
Today's U.S. Economic Calendar (all times EST)
- MBA Mortgage Applications at 7 a.m.
- Dallas Federal Reserve Bank President Robert Kaplan speaks at 8 a.m.
- ADP Employment Report at 8:15 a.m.
- Personal Income and Outlays at 8:30 a.m.
- Federal Reserve Board Gov. Jerome Powell speaks at 9:15 a.m.
- Chicago PMI at 9:45 a.m.
- Pending Home Sales Index at 10 a.m.
- EIA Petroleum Status Report at 10:30 a.m.
- Cleveland Federal Reserve Bank President Loretta Mester speaks at 12:35 p.m.
- Beige Book at 2 p.m.
- Farm Prices at 3 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.