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The Dow Jones Industrial Average was pushing even higher again on Tuesday as investors focus on the December FOMC meeting. Optimism is soaring as the projected opening price puts the markets within striking distance of Dow 20,000.
With the way the markets are moving, 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 Monday, the Dow hit another record high – adding 39 points – as energy traders cheered a huge production deal between OPEC and non-OPEC nations and investors showed optimism over the U.S. economy as we head into 2017.
Let's look at the numbers from Monday for the Dow, S&P 500, and Nasdaq:
Dow Jones: 19.796.43; +39.58; +0.20%
S&P 500: 2,256.96; -2.57; -0.11%
Nasdaq: 5,412.54; -31.96; –0.59%
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 Jones Industrial Average projected a seven-point gain as investors prepare for a busy day of economic data and the start of the U.S. Federal Reserve's final meeting on monetary policy in 2016. However, investors need to be cautious about President-elect Donald Trump's policies. The December Fed Survey by CNBC indicated that investors are way too optimistic about Trump's policies. Any failure to achieve his plans could hurt the market.
During the December FOMC meeting, the U.S. central bank will 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 be help fuel greater economic growth, there are some concerns that they could also spur higher inflation. Here's what a December Fed rate hike means for investors.
Crude oil prices were ticking higher and back near a record high for 2016. The uptick comes after OPEC and non-OPEC nations agreed over the weekend to reduce production in order to support crude oil prices. Following the deal, the International Energy Agency revised its global supply forecast for the year ahead and projected that global inventories will begin to fall over the next six months. The WTI crude oil price today added 0.6%. Meanwhile, Brent crude gained 0.8%.
Money Morning Global Energy Strategist Dr. Kent Moors breaks down the OPEC deal to cut oil production and offers his forecast for crude prices in the year ahead. As both Dr. Moors and the IEA have pointed out, the price of crude won't go higher if the OPEC deal falters in any way. Dr. Moors has several profit plays that can make you big money if you get started today. Don't miss his latest insight, right here.
Lost in the conversation about rising oil prices has been the strong increase in natural gas prices over the last month. In the last 30 days, the U.S. Henry Hub natural gas benchmark rate is now up 36.7%. But it isn't cold weather or post-election optimism that has been driving the uptick. It's a supply issue. The last time we faced a similar supply challenge, natural gas prices spiked to levels we haven't seen in nearly a decade. Dr. Moors outlines his 2017 natural gas price forecast, right here.
Gold prices are in focus with the Federal Reserve meeting to discuss a December Fed rate hike. Following the Dec. 14 FOMC meeting, Money Morning Resource Specialist Peter Krauth's bold gold price prediction shows how high prices could climb heading into 2017. Here's where gold prices are heading next.
But that's not all from Krauth this morning. Like gold prices, investors have many questions about silver prices today. Krauth explains that we could see silver rally to $19 per ounce by the time that President-elect Donald Trump is sworn into office. Here's his latest silver forecast.
But the big news this morning is the controversy swelling over President-elect Trump's nomination of Exxon Mobil Corp. (NYSE: XOM) CEO Rex Tillerson for secretary of state. Tillerson became Exxon's CEO in 2004 and has maintained a strong relationship with Russian President Vladimir Putin.
That latter issue has some members of Congress already pushing back. Expect an interesting hearing when Tillerson seeks confirmation. Topics of conversation will center on Exxon's business deals in Russia and Africa, how Tillerson's relationships with Middle Eastern nations could impact America's relationship with Israel, and the role of energy policy on foreign policy abroad.
In other Trump news, many outlets are projecting Trump will nominate former Texas Gov. Rick Perry to head the Department of Energy. Perry, who is from the oil-friendly state of Texas, has denied humans' role in climate change in the past. Environmentalists will likely protest his nomination.
Stocks to Watch Today, Dec. 13, 2016
- Shares of Lockheed Martin Corp. (NYSE: LMT) stock are still in focus after President-elect Trump took to Twitter and criticized the jet program. Shares of Lockheed Martin stock fell 2.4% on Monday but rebounded slightly in pre-market hours. Despite the tweet from Trump, we offer several reasons why LMT stock is poised to fully rebound. Check out that insight, right here. Money Morning Chief Investment Strategist Keith Fitz-Gerald has put together a guide to help investors profit from Trump's penchant for criticizing companies through social media. Check it out, right here.
- On the earnings front, VeriFone Systems (NYSE: PAY) fell more than 3.7% after the company fell short of fiscal fourth-quarter earnings on Monday afternoon.
- Look out for additional earnings reports from Nordson Corp. (Nasdaq: NDSN), HEICO Corp. (NYSE: HEI), and ABM Industries Inc. (NYSE: ABM).
Today's U.S. Economic Calendar (all times EST):
- NFIB Small Business Optimism Index at 6 a.m.
- Import and Export Prices at 8:30 a.m.
- Redbook at 8:55 a.m.
- Four-Week Bill Auction at 11:30 a.m.
- 30-Year Bond Auction at 1 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.