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On Monday, the Dow gained 45 points as investors shrugged off geopolitical concerns in Europe and all 10 major S&P 500 sectors finished in the green. The Dow hit a new all-time intraday high as optimism about the U.S. economy and the incoming Trump administration brims.
Let's look at 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%
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 is projecting more than a 10-point gain after oil prices dipped and investors began speculating on another busy day of economic data and quarterly earnings reports. But the big news this morning is happening in Italy, where shares of the banking giant Banca Monte dei Paschi di Siena (OTCMKTS: BMDPF) have been falling. The financial stock has plunged nearly 85% so far this year, fueling speculation that the company may require a bailout from Italian taxpayers.
Markets have largely shrugged off concerns about the Italian referendum vote that saw the nation’s citizens turn down plans to grant its Prime Minister Matteo Renzi new powers to alter the country’s financial sector. Renzi has announced his plans to resign after the failed referendum.
Here's what the Italy referendum results mean for the markets.
Oil prices were falling from a 16-month high Tuesday on word that crude production rose in Russia and nearly every other major export market in November. The boost in output comes at the same time that Russia and OPEC plan a major production cut to reduce excessive crude supply. Today’s production news triggered new fears of a global supply glut.
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. However, Moors also explains that the biggest challenge in the months ahead is OPEC’s ability to enforce the deal.
The WTI crude oil price today fell 1.2%, while the Brent crude oil price decreased by 0.9%.
But the story slipping under the radar comes from Euro Pacific Capital CEO and well-known economist Peter Schiff. The outspoken economist has crunched the numbers surrounding President-elect Donald Trump’s plan for the U.S. economy. Simply put, he doesn’t like it. And Schiff lays out a dire scenario for the U.S. economy should Trump get his way on spending in the years ahead. Here’s Schiff’s latest prediction for the U.S. economy.
Stocks to Watch Today, Dec. 6, 2016
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- In earnings news, Toll Brothers Inc. (NYSE: TOL) shares were on the rise this morning after the company topped Wall Street earnings expectations for the fifth-straight quarter. The residential construction company said that higher home prices and higher average selling prices helped bolster their bottom line. Toll also issued a positive outlook for the 2017 construction industry.
- Look for earnings reports from AutoZone Inc. (NYSE: AZO), Dave & Busters Entertainment Inc. (Nasdaq: PLAY), Photronics Inc. (Nasdaq: PLAB), AeroVironment Inc. (Nasdaq: AVAV), Bob Evans Farms Inc. (Nasdaq: BOBE), Francesca’s Holdings Co. (Nasdaq: FRAN), Bank of Montreal (NYSE: BMO), and Conns Inc. (Nasdaq: CONN).
Today’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.
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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.