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.
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.
Don’t Miss: Learn how to Grab Explosive Emerging-Market Profits, While Keeping Your Money Here at Home
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.
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About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.