Start the conversation
Over the weekend, OPEC and non-OPEC states agreed to cap excessive production for the first time in 15 years.
U.S. markets were pushing higher despite news that China's stock market fell nearly 2.5% after the nation unveiled new regulations around aggressive share purchasing by insurance companies.
We are now within striking distance of Dow 20,000, and the odds are that we could see that new record high any day now. So, when will we see Dow 20,000? Money Morning Capital Wave Strategist Shah Gilani has that answer, right here.
On Friday, the Dow hit another record high – adding 141.97 points – after global markets rallied thanks to a positive round of economic data from China.
Let's look at the numbers from Friday for the Dow, S&P 500, and Nasdaq:
Dow Jones: 19,756.78; +141.97; +0.72%
S&P 500: 2,259.53; +13.34; +0.59%
Nasdaq: 5,444.50; +27.14; +0.50%
Here's a look at today's most important market events and stocks, plus a look at Monday's economic calendar.
What's Ahead for the Dow Jones Industrial Average Today
The Dow Jones Industrial Average projected a more than 10-point gain as investors continue to cheer a massive deal among global crude oil producers.
Crude oil prices hit an 18-month high after the world's top oil producers agreed to their first joint production cut since 2001. Russia agreed to slash roughly 300,000 barrels per day. Meanwhile, an additional 11 non-OPEC nations – including Mexico, Oman, and Kazakhstan – agreed to slash production.
The deal helped spur a rally in currencies of global exporting nations like Canada, Russia, and Norway. The WTI crude oil price today has rallied more than 4.0%. Meanwhile, Brent crude added 4.6%.
Money Morning Global Energy Strategist Dr. Kent Moors breaks down the deal to cut oil production reached by OPEC and offers his forecast for crude prices in the year ahead. Don't miss his latest insight, right here.
Investors are keeping an eye on the U.S. Federal Reserve as the central bank plans to meet tomorrow to discuss its first possible interest rate hike since December 2015. The central bank will need to focus on the fiscal policies of the incoming Trump administration. Though Trump's policies – tax cuts, corporate reform, and infrastructure spending – could help fuel greater economic growth, there are some concerns that they could also spur higher inflation. According to CME Group's FedWatch Tool, the odds of a rate hike during this week's meeting sits at 94.9%.
Gold prices are coming off their fifth consecutive weekly decline after concerns about an interest rate hike and a stronger U.S. dollar. The price of gold fell 0.4% to a 10-month low with Fed Chair Janet Yellen's team preparing for their first rate hike in a year. The recent gold price downturn has opened up an incredible profit opportunity. Mark your calendar, writes top trader Tom Gentile. Some of the biggest gains for gold are coming on this date.
But the big news this morning is that President-elect Donald Trump has selected Rex Tillerson as his nominee for Secretary of State. Who is Rex Tillerson? Tillerson is the current CEO of Exxon-Mobil Corp. (NYSE: XOM), one of the world's largest energy producers in the world. Tillerson oversees a company with a market capitalization of $371 billion.
The Wall Street Journal reports that many in Washington on both sides of the political aisle are concerned about Tillerson's ties to Russian President Vladimir Putin from Exxon's energy partnerships abroad.
Despite the criticism, shares of XOM stock gained 1.7% in pre-market hours.
Stocks to Watch Today, Dec. 12, 2016
- Shares of Boeing Co. (NYSE: BA) were in focus this morning after the global aircraft manufacturer announced it has completed a $16.6 billion deal with Iran Air. The deal for 80 new jetliners is the largest deal between an Iranian and American company since 1979. Iran Air – like other Iranian companies – had been unable to engage in trade with the United States and many Western nations due to sanctions tied to the nation's nuclear program.
- One of our favorite stocks for 2017 is Apple Inc. (Nasdaq: AAPL). The technology manufacturer continues to make headlines each week as global demand for its products soars. But one story that you might have missed is that Apple is investing in Chinese wind power. And it's doing it with one huge goal in mind that could revolutionize how the company makes its products. Here's more on that huge development.
- On the earnings front, keep an eye out for a quarterly report from VeriFone Systems (NYSE: PAY). The company will report earnings after the bell on Monday. Shares of the electronic-payment giant were up nearly 3% in pre-market hours.
- Stock markets might have shattered record highs this month, but these overheated markets could signal a 2017 market crash. Money Morning experts offer several ways to both protect your investments and even make money during a crash. Be sure to read our stock market crash protection plan before it's too late.
Today's U.S. Economic Calendar (all times EST)
- Four-Week Bill Announcement at 11 a.m.
- Three-Month Bill Auction at 11:30 a.m.
- Six-Month Bill Auction at 11:30 a.m.
- Three-Year Note Auction at 1 p.m.
- 10-Year Note Auction at 1 p.m.
- Treasury Budget at 2 p.m.
When it comes to making money in the market, "getting in" early – before a stock begins to make its decisive move – is the single biggest factor to your success as an investor.
Quickly buying Apple after the June 2013 sell-off, for instance, could have doubled your money. Moving on Valeant the same day we recommended our big "negative bet" against it would've booked you a remarkably fast 700% return.
That's why we've introduced Money Morning Profit Alerts. This new, free service lets you choose what investing areas you want to follow – and makes sure you get alerted to news from that sector as soon as we publish it. It means no more waiting. No more searching. No more missing out. It's easy to get started – just go here.
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.