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The Dow Jones Industrial Average today pushed to an all-time high on Monday after the markets shrugged off concerns about yesterday's Italy referendum vote.
Investors celebrated positive economic data in the United States, as the services side of the U.S. economy expanded at its quickest pace last month in more than a year.
Investors are increasingly optimistic that the U.S. economy will continue to expand and experience new catalysts thanks to President-elect Donald Trump. He plans to cut taxes, bolster infrastructure spending, and introduce corporate tax reform.
Let's look at the numbers the numbers from Monday for the Dow, S&P 500, and Nasdaq:
Dow Jones: 19,216.24; +45.82; +0.24%
S&P 500: 2,204.70; +12.76; +0.58%
Nasdaq: 5,308.58; +53.24; +1.01%
Now, here's a look at today's most important market events and stocks, plus a preview of Tuesday's economic calendar.
DJIA Today: Dow Hits New All-Time High
The Dow Jones gained 45 points as investors shrugged off geopolitical concerns in Europe and all 10 major S&P 500 sectors finished in the green today.
On Sunday, Italian citizens voted down a referendum that would have let Prime Minister Matteo Renzi reform the nation's economy. Renzi is expected to resign after the Italy referendum results. The vote was especially worrisome to the European banking and financial sector.
Meanwhile, shares of Apple Inc. (Nasdaq: AAPL) fell more than 0.5% on news that the company's Apple Watch shipments slumped a staggering 71% in the third quarter. According to industry tracker IDC, the wearable technology sector saw just a 3.1% increase in shipments during the quarter. Shares of FitBit Inc. (NYSE: FIT) fell by more than 1.2% on the day.
Investors are keeping an eye on the Federal Reserve as the central bank plans to meet next week to discuss its first possible interest rate hike since December 2015. In a speech this morning, New York Fed President William Dudley said that the United States will see gradual interest rate hikes should the economy continue its positive streak.
The U.S. Federal Reserve has done an immense amount of damage to the American economy over the last decade. While everyone is focusing on rate hikes, Money Morning breaks down another radical option being considered by the central bank to prop up the U.S. market. And this nefarious option could destroy capitalism once and for all.
The price of crude oil hit a 16-month high as investors continue to snap up contracts on hopes that the markets will avoid a global glut in the year ahead. The rally in crude prices comes a week after OPEC announced that it had struck a deal to cap excessive crude oil production
The WTI crude oil price today climbed $0.11 to finish the trading session at $51.79 per barrel. That's the highest price for WTI crude since June 2015. Money Morning Global Energy Strategist Dr. Kent Moors has explained that a price floor above $50 a barrel was one of the primary goals of the OPEC agreement.
The other news today is happening in the transition team of President-elect Donald Trump. According to various reports, Trump is considering Exxon Mobil Corp. (NYSE: XOM) CEO Rex Tillerson for the role of secretary of state.
Top Stock Market News Today, Dec. 5, 2016
- It was a big day for Goldman Sachs Group Inc. (NYSE: GS). Shares of the investment bank climbed by 2% and hit a nine-year high after the company received a "Buy" rating and a $250.00 price target.
- In deal news, shares of broadband service provider FairPoint Communications (Nasdaq: FRP) rallied more 12% on news that it will purchase rival Consolidated Communications Holdings Inc. (Nasdaq: CNSL) in a deal worth $1.5 billion.
- Shares of GoPro Inc. (Nasdaq: GPRO) slipped more than 0.2% after the stock had a strong run last week. GoPro stock had a brief rally last week following strong Black Friday sales. Despite the news its Black Friday sales increased by 35% this year, investors must be wary of the hardware manufacturer. Here's our latest insight on GoPro shares and why you shouldn't bank on a rebound for the company in 2017.
- Over the weekend, Barron's named its favorite stocks of 2017. The list is comprised of Alphabet Inc. (Nasdaq: GOOGL), Apple Inc., Citigroup Inc. (NYSE: C), Delta Air Lines Inc. (NYSE: DAL), Deutsche Telekom AG (OTCMKTS ADR: DTEGY), Merck & Co. Inc. (NYSE: MRK), Novartis AG (NYSE ADR: NVS), Toll Brothers Inc. (NYSE: TOL), Unilever Plc. (NYSE ADR: UL), and Walt Disney Co. (NYSE: DIS). The publication said that these stocks have lagged the market in 2016 and their valuations are attractive. Just because these stocks were struggling this year, however, doesn't mean they'll do any better in 2017. That's why we have our own list of stocks to buy for 2017. Our list of stocks is poised to soar thanks to a major policy change expected by President-elect Donald Trump. Read our list, right here.
- No major U.S. companies reported earnings Monday.
Tuesday's U.S. Economic Calendar (all times EST)
- International Trade at 8:30 a.m.
- Productivity and Costs at 8:30 a.m.
- Gallup US ECI at 8:30 a.m.
- Redbook at 8:55 a.m.
- Factory Orders at 10 a.m.
- Four-Week Bill Auction at 11:30 a.m.
- 52-Week Bill Auction at 11:30 a.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.