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The Dow Jones Industrial Average bounced back from Wednesday's triple-digit decline as the stronger U.S. dollar and improving economic data fueled optimism.
On Wednesday, the U.S. Federal Reserve raised interest rates for the first time in a decade, as the job market continues to show strength and inflation levels are approaching the central bank's target. The Dow came within 50 points of hitting 20,000.
Let's look at the numbers from Thursday for the Dow, S&P 500, and Nasdaq:
Dow Jones: 19,852.24; +59.71; +0.30%
S&P 500: 2,262.03; +8.75; +0.39%
Nasdaq: 5,456.85; +20.18; +0.37%
Now, here's a look at today's most important market events and stocks, plus a preview of Friday's economic calendar.
DJIA Today: Dow Pushes Higher as Banking Stocks Rally; Oil Prices Flat
The Dow Jones rallied again on Thursday – adding 60 points – as banking stocks continued to rally due to confidence in President-elect Donald Trump's economic policies. Trump's plans for income tax cuts, corporate tax reform, and infrastructure spending are expected to spur inflation higher. As a result, the Fed may need to raise interest rates again, which will increase the cost of loans and benefit financial institutions.
Gold prices and silver prices plunged after the U.S. dollar hit its highest level since 2003. Gold prices dipped 2.7%, while silver fell 6.8%. Gold prices are sitting at a 10-month low.
Crude oil prices were flat on Thursday as a rising dollar weighed on trader sentiment.
The WTI crude oil price today dipped 0.1% after the Energy Information Administration reported Wednesday that inventory levels increased at the key crude hub in Cushing, Okla.
It was the sixth straight week of inventory builds at the facility. However, the EIA also reported a total U.S. inventory decline of 2.6 million barrels, when analysts had expected a build of roughly 1 million barrels of crude.
Meanwhile, Brent crude dipped 3.5% as traders continue to monitor the progress of OPEC's deal with 12 nonmember nations to reduce total oil production.
On the geopolitical front, Iran warned of an inevitable World War III that includes the annihilation of Israel if U.S. President-elect Donald Trump breaches the 2015 nuclear deal between Tehran and Washington. What was it that Trump said that put Tehran on the defensive?
The big news today is what one hacking event can do to a technology stock.
Shares of Yahoo! Inc. (Nasdaq: YHOO) plunged more than 5.8% on news that the company was hacked in 2013. The cyberattack compromised 1 billion email accounts and could end up costing the company $1 billion in its deal with Verizon Communications Inc. (NYSE: VZ). Verizon said that it will explore a lower price for the core assets of Yahoo or pull out of the deal altogether. The buyout is supposed to close in the first quarter of 2017. Here's everything you need to know about the Yahoo hack 2016.
Top Stock Market News Today, Dec. 15, 2016
- Shares of General Motors Inc. (NYSE: GM) added more than 0.8% after the company announced plans to begin the production and testing of autonomous vehicles in Michigan.
- Shares of Mondelez International Inc. (Nasdaq: MDLZ) added more than 4.3% on speculation that the company is about to be acquired. According to Bloomberg, Kraft-Heinz Co. (NYSE: KHC) is considering a bid to purchase the global snack manufacturer. Shares of KHC stock gained 1.1%.
- In earnings news, shares of Pier 1 Imports Inc. (NYSE: PIR) surged more than 30% after the company hiked its earnings outlook for the December-ending quarter. The home-furnishings retailer said consumers are increasing spending and a number of trends favor its outlook in the months ahead.
- After the bell, keep an eye on earnings reports from Oracle Corp. (Nasdaq: ORCL), Adobe Systems Inc. (Nasdaq: ADBE), Jabil Circuit Inc. (NYSE: JBL), and Quanex Building Products Corp. (NYSE: NX).
- Finally, the holiday shopping season is in full swing, which means it's time to take advantage of the biggest trends this year. And America's No. 1 Trader, Tom Gentile, encourages you to treat your portfolio to the most lucrative "Christmas stock" out there. Here's Gentile's latest stock recommendation.
Friday's U.S. Economic Calendar (all times EST)
- Housing Starts at 8:30 a.m.
- Atlanta Fed Business Inflation Expectations at 10 a.m.
- Richmond Federal Reserve Bank President Jeffrey Lacker speaks at 12:30 p.m.
- Baker Hughes Inc. Rig Count 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.