Start the conversation
The Dow Jones Industrial Average today slipped thanks to a downturn in crude oil prices, but that didn’t stop the Nasdaq from hitting another record high.
Gold prices and silver prices each climbed more than 0.8%.
Let’s look at the numbers from Monday for the Dow, S&P 500, and Nasdaq:
Dow Jones: 19,887.38; -76.42; -0.38%
S&P 500: 2,268.90; -8.08; -0.35%
Nasdaq: 5,531.82; +10.76; +0.19%
Now, here’s a look at today’s most important market events and stocks, plus a preview of Tuesday’s economic calendar.
DJIA Today: Dow Slumps After Oil Prices Fall
The Dow Jones slipped 76 points Monday thanks to a downturn in crude prices. Optimism over job creation and economic growth couldn’t push the Dow Jones any closer to the psychological barrier of 20,000.
The Dow could hit that level this week, with several financial giants poised to report earnings. The roster of firms reporting earnings includes Bank of America Corp. (NYSE: BAC), BlackRock Inc. (NYSE: BLK), and JPMorgan Chase & Co. (NYSE: JPM).
It was mostly a quiet day for economic data. However, several members of the Federal Reserve made statements on monetary policy and their expectations for the incoming Trump administration. Atlanta Federal Reserve President Dennis Lockhart said the economic crisis is "largely done." He urged his fellow central bankers to step aside and let the economy walk on its own. Boston Fed President Eric Rosengren also called for the central bank to accelerate the number of interest rate hikes in the year ahead.
Crude oil prices plunged on concerns that OPEC’s production deal to cap excessive supply will not happen. Investors are worried producers are increasing rigs and expanding production. Iraq is OPEC’s second-largest producer and announced that output from the nation’s Basra ports hit a record high in December.
The WTI crude oil price today was down 3.9%. Meanwhile, Brent crude was also off 3.9%.
But the big story today is happening with Chinese e-commerce giant Alibaba Group Holding Ltd. (NYSE: BABA).
On the same day that President-elect Donald Trump praised Ford Motor Co. (NYSE: F) and Fiat Chrysler Automobiles NV (NYSE: FCAU) for its commitment to job creation and investment in the United States, Alibaba Chairman Jack Ma made a stunning announcement of his own.
The president-elect met with Ma today to discuss plans to create 1 million new jobs in the United States. Alibaba plans to expand trade between small businesses in the U.S. Midwest and Southeast Asia. Ma says the goal to create 1 million jobs can be reached by allowing U.S. small businesses and farmers to trade goods with Asian consumers through Alibaba’s consumer platforms. Shares of BABA stock gained more than 1% on the day.
Stock Market News and Top Stocks to Watch Today: Jan. 9, 2016
- Shares of Apple Inc. (Nasdaq: AAPL) added more than 1% after a report indicated that the company could be releasing three new iPad models this spring. According to reports, the technology giant will release several new models to help address the company’s declining iPad shipments in the fourth quarter. The news comes just a few days after reported cuts in iPhone production. Apple stock remains one of Money Morning’s favorite long-term investments. In fact, with the Nasdaq hovering near all-time highs, AAPL stock is one of the best investments you can buy right now. What are the other four? Find out, right here.
- In deal news, shares of animal hospital operator VCA (Nasdaq: WOOF) surged nearly 30% after the company agreed to a $7.7 billion buyout offer from pet food and candy manufacturer Mars Inc.
- S. insurance giant UnitedHealth Group Inc. (NYSE: UNH) announced a $2.3 billion deal to purchase Surgical Care Affiliates (Nasdaq: SCAI). Shares of SCAI surged more than 16%. Finally, shares of Ariad Pharma (Nasdaq: ARIA) rallied more than 72% after the company agreed to be purchased by Japan’s Takeda for $5.20 billion.
- On the revenue front, shares of Celgene Corp. (Nasdaq: CELG) fell more than 1.1% after the pharmaceutical giant slashed its full-year forecast.
Tuesday’s U.S. Economic Calendar (all times EST)
- NFIB Small Business Optimism Index at 6 a.m.
- Redbook at 8:55 a.m.
- JOLTS at 10 a.m.
- Wholesale Trade at 10 a.m.
- Four-Week Bill Auction at 11:30 a.m.
- Three-Year Note Auction at 1 p.m.
Get on the Path to Greater Wealth: When it comes to making money in the market, "getting in" early – before a stock begins to make its decisive move – is the single biggest factor to your success as an investor. Quickly buying Apple after the June 2013 sell-off, for instance, could have doubled your money. Moving on Valeant the same day we recommended our big "negative bet" against it would've booked you a remarkably fast 700% return. That's why we've introduced Money Morning Profit Alerts. This new, free service lets you choose what investing areas you want to follow – and makes sure you get alerted to news from that sector as soon as we publish it. It means no more waiting. No more searching. No more missing out. It's easy to get started – just go here.
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.