Investors are also digesting a warning about the impact of expected fiscal policies of President-elect Trump on the U.S. dollar.
On Wednesday, the Dow climbed higher and put the index within 100 points of 20,000. The uptick came after the Federal Reserve released minutes from the December FOMC meeting. The Fed has forecasted at least three interest rate hikes this year.
According to the minutes, the central bank increased its benchmark rate in response to the market reactions to President-elect Trump and his planned fiscal policies. The central bank is increasingly concerned about inflation and thus the possibility of more interest rate hikes. This is a stark contrast from the last few years. Lagging inflation had been a key reason why the central bank only raised interest rates one time in ten years prior to last month's rate hike.
Let's look at the numbers from Wednesday for the Dow, S&P 500, and Nasdaq:
Dow Jones: 19,942.16; +60.40; +0.30%
S&P 500: 2,270.75; +12.92; +0.57%
Nasdaq: 5,477.00; +47.92; +0.88%
Here's a look at today's most important market events and stocks, plus a look at Thursday's economic calendar.
The Dow projected an 18-point decline as Wall Street prepares for a very busy day of economic data. This morning, ADP announced that the private sector created 153,000 jobs in December, a figure that is below analyst expectations of 170,000 positions. The release puts tomorrow's December unemployment rate and jobs report from the U.S. Labor Department in focus. Any disappointment could cool off the red-hot market that has surged since the Nov. 8 election.
In oil price news today, crude prices are ticking higher after the Federal Reserve released minutes from its last meeting in December and OPEC continues to make progress in its deal to cap excessive global supply.
The WTI crude oil price today was up 0.7% ahead of today's inventory report by the Energy Information Administration. Energy analysts anticipate that crude stocks decreased last week by 1.7 million barrels.
Don't Miss: My (Bold) 2017 Oil Price Forecast - and Today's Most Profitable Energy Play
Meanwhile, Brent Crude added roughly 0.7% after Saudi Arabian leaders showed their commitment to OPEC's deal to cut excessive supply. The largest producer in the global oil cartel has informed its customers of its planned production cuts.
Although the mainstream press is focusing on Saudi Arabia's actions, Money Morning Global Energy Strategist Dr. Kent Moors says that everyone should instead consider what is happening in the offices of another OPEC titan. Dr. Moors explains that a big development in Iran is expected to shake up the global oil markets, but not in the way that you think. Here's his latest insight.
But the big story is happening in Washington where Republicans are looking to overhaul the regulatory efforts of the Obama Administration in the last eight years. The GOP and President-elect Donald Trump are specifically eyeing the repeal of the Dodd-Frank Act.
One provision in particular is stirring the ire of Congressional leadership: the Volcker Rule.
The rule was adopted in the wake of the 2008 financial crisis. It was passed to prevent the negative effects of risky proprietary trading and hedge fund ownership by big banks on everyday investors. So, how likely is it that this provision will be rolled back? Money Morning Capital Wave Strategist Shah Gilani breaks down the probability that the Trump administration repeals the Volcker rule and what it means to your money, right here.
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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.