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The Dow Jones Industrial Average today is flat despite news that global markets are hovering back near 18-month highs.
Global sentiment remains high two days after the Federal Reserve released minutes from its December meeting. The central bank said that it expects the U.S economy to accelerate in the year ahead due to the stimulatory effects of the incoming administration's fiscal policies. The Fed says that it may need to hike interest rates several times in 2017 to prevent the U.S. economy from overheating.
On Thursday, the Dow fell for the first time in 2017 – shedding 42 points – thanks to a drop in financial stocks. Shares of Goldman Sachs Group (NYSE: GS) were the biggest loser for the markets on the day, shedding 2.2%. Retail stocks also slumped after Macy's Inc. (NYSE: M) and Kohl's Corp. (NYSE: KSS) slashed their 2017 outlook.
Let's look at the numbers from Thursday for the Dow, S&P 500, and Nasdaq:
Dow Jones: 19,899.29; -42.87; -0.21%
S&P 500: 2,269.00; -1.75; -0.08%
Nasdaq: 5,487.94; +10.93; +0.20%
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 projected a nine-point decline in premarket hours as the markets digest the December unemployment report.
The U.S. Labor Department reported that 156,000 jobs were added in December, which fell short of economists' prediction of 178,000 new jobs.
In a busy day of economic data, investors will also monitor an update on the monthly trade deficit and factory orders. Also, three members of the Fed will speak today about monetary policy and the U.S. economy.
Silver prices were sliding 0.7% in premarket hours, while gold prices were falling from a nine-week high. Precious metals have been beaten down over the last two months, and the silver price has seen the worst of it. But Money Morning Resource Specialist Peter Krauth is still bullish about silver prices in 2017.
The 20-year veteran in the metals sector has set an ambitious price target for the year ahead. See his latest silver price forecast, right here.
In oil price news today, crude prices were ticking higher as traders focus extensively on individual commitments from OPEC nations to make production cuts to cap excessive production. On Wednesday, Saudi Arabia announced it would cut 486,000 million barrels per day (BPD) and notified its customers of its production plans. But some are concerned that cuts may not come from Iraq due to Kurdish opposition and desire for autonomy.
The WTI crude oil price today was up 0.7%.
Meanwhile, Brent crude added 0.8%.
But the big story is Toyota Motor Corp. (ADR) (NYSE: TM).
Shares of Toyota were falling in premarket hours a day after President-elect Donald Trump took aim at the Japanese car maker Thursday on Twitter.
Trump has taken issue with the company's decision to build its Corolla vehicles destined for the U.S. market in Mexico. The 45th president said that unless the enterprise makes the vehicles in the United States, he will aim to impose hefty tariffs on imports.
The president-elect has threatened several U.S. car manufacturers with import taxes should they relocate facilities to Mexico. This is the first case, however, where Trump has threatened to tax a foreign corporation.
Money Morning Chief Investment Strategist Keith Fitz-Gerald has developed a winning strategy to help you make money on the surprise tweets by President-elect Trump. As Trump continues to rattle investors with morning Tweets about the U.S. economy, be sure to read this strategy and start making money now. Check it out, right here.
Stocks to Watch Today, Jan. 6, 2017
- Technology stocks are in focus with the 2017 Consumer Electronics Show (CES) continuing in Las Vegas this week. With that in mind, we're featuring the five top CES companies and stocks to watch now. No. 3 will surprise you as a very interesting technology play from a non-traditional source. Check it out, right here.
- Shares of Apple Inc. (Nasdaq: AAPL) are in focus after the global technology giant is taking its battle against Samsung to its rival's home turf. Apple announced plans to open its first store in South Korea and has started its employee recruitment plan.
- In earnings news, shares of Ruby Tuesday Inc. (NYSE: RT) fell more than 15% in premarket hours after the restaurant chain fell well short of Wall Street earnings expectations. The company reported a quarterly loss of $0.18 per share on revenue of $214.72 million. That fell well short of consensus expectations of a loss of $0.07 per share on $253.54 million in revenue.
- On Friday, look for quarterly earnings reports from Greenbrier Companies (NYSE: GBX), AngioDynamics Inc. (Nasdaq: ANGO), and AZZ Inc. (NYSE: AZZ).
Today's U.S. Economic Calendar (all times EST)
- Employment Situation at 8:30 a.m.
- International Trade at 8:30 a.m.
- Factory Orders at 10 a.m.
- Chicago Federal Reserve Bank President Charles Evans at 11:15 a.m.
- Baker-Hughes Rig Count at 1 p.m.
- Richmond Federal Reserve Bank President Jeffrey Lacker speaks at 1 p.m.
- Treasury STRIPS at 3 p.m.
- Dallas Federal Reserve Bank President Robert Kaplan speaks at 3:30 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.