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The Dow Jones Industrial Average is rising again on Friday as investors keep a sharp eye on another round of economic data and a rallying U.S. dollar.
The greenback received a huge boost this week after the U.S. Federal Reserve hiked interest rates and signaled that the U.S. economy was gaining strength. There is now talk the Fed could raise interest rates up to three times in 2017.
On Thursday, the Dow bounced back from Wednesday's triple-digit decline as the stronger U.S. dollar and improving economic data fueled optimism.
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%
Here's a look at today's most important market events and stocks, plus a look at Friday's economic calendar.
What's Ahead for the Dow Jones Industrial Average Today
The Dow is projecting a 43-point gain on Friday, pushing the index within reach of the psychologically important barrier of Dow 20,000.
With interest rates on the rise, investors are wondering if the post-election rally is over. But here at Money Morning, we recommend that investors buy stocks now that are able to outperform the market regardless of what the Fed does with interest rates. That's why we've put together this guide on how to invest after an interest rate hike.
The WTI crude oil price today was pushing higher this morning as markets realized that OPEC has begun its planned production cuts. WTI prices added 0.8% in pre-market hours thanks to the combination of OPEC cuts and word that U.S crude inventory levels fell last week.
Meanwhile, Brent crude gained 0.5% in pre-market hours.
Money Morning Global Energy Strategist Dr. Kent Moors has said that the biggest challenge for OPEC and non-OPEC producers will be the enforcement of its deal. Kuwait, Saudi Arabia, and Abu Dhabi have all formally informed their customers that they are proceeding with strategic cuts to their production. But there's another story that just hit the energy markets. In fact, it's a looming energy crisis concerning one of Europe's richest countries. And this could be the most important story that you read all day.
Shares of Yahoo! Inc. (Nasdaq: YHOO) are recovering from a huge decline on Thursday. The stock plunged more than 6.1% yesterday 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.
Stocks to Watch Today, Dec. 16, 2016
- Shares of Facebook Inc. (Nasdaq: FB) gained more than 0.2% in pre-market hours. Though the company's shareholders approved a 3-for-1 stock split earlier this year, many are wondering will Facebook stock split after new details emerged from a class-action lawsuit filed in April. Here's the latest on the FB stock split and what it means for investors.
- Shares of Mondelez International (Nasdaq: MDLZ) were up another 1% in pre-market hours 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.
- Keep an eye on Trivago (Nasdaq: TRVG) as the hotel search website operator is preparing to launch public trading. The firm's initial public offering has been priced at $11 per share, raising $287 million in the process. Still, that $11 figure is well below the anticipated range of $13 to $15 a share.
- In earnings news, shares of Oracle Corp. (NYSE: ORCL) fell 2.5% after the company fell short of Wall Street expectations. Though the firm topped EPS expectations by a penny, it reported weaker than expected revenue. The company did surpass rival Salesforce.com Inc. (NYSE: CRM) in cloud-based sales, but investors still seemed disappointed by the company's quarterly report.
- On a light day of earnings, lookout for a quarterly report from Triangle Petroleum Corp. (Nasdaq: TPLM).
Today'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.