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The Dow Jones Industrial Average slumped today after traders freaked out over a statement by President-elect Donald Trump on the impact of a strong dollar on trade between the United States and China.
Banking stocks slumped despite increased optimism over upcoming earnings reports from some of the top firms on Wall Street.
Let's look at the numbers from Tuesday for the Dow, S&P 500, and Nasdaq:
Dow Jones: 19,826.77; -58.96; -0.30%
S&P 500: 2,267.89; -6.75; -0.30%
Nasdaq: 5,538.73; -35.39; -0.63%
Now, here's a look at today's most important market events and stocks, plus a preview of Wednesday's economic calendar.
DJIA Today: Dow Slumps 58 Points After Trump's "Strong Dollar" Talk
The Dow Jones slipped 58 points after traders digested the latest statements from President-elect Trump on the strength of the U.S. dollar and his views on drug prices. The iShares NASDAQ Biotechnology Index (ETF) (Nasdaq: IBB) fell more than 1.6% after Trump's statements.
Trump's statement on the Affordable Care Act came on the same day that the CBO released a report highlighting the impact of a repeal of the healthcare law. The independent agency said that a repeal would lead to 18 million more people living without health insurance, and a repeal of the healthcare law would also fuel a double-digit increase in prices in the first year.
Brilliant: Best Stocks to Buy for January 2017
Banking stocks also plunged as concerns over Trump's statements on the dollar weighed on the sector.
Biotech and pharmaceutical stocks also slumped after President-elect Trump said he would target drug companies that are charging the government too much money.
An uptick in consumer staple stocks helped offset some losses today. Shares of Wal-Mart Stores Inc. (NYSE: WMT) climbed 1.9%. The retail giant announced plans to create 10,000 jobs in the United States in 2017.
Crude oil prices were mixed thanks to a weakening dollar and chatter about Saudi Arabia's compliance in the OPEC deal to cap excessive production. The WTI crude oil price today added 0.2%. Meanwhile, Brent crude was off 0.5%.
President-elect Trump's statements today also gave silver prices and gold prices a boost.
Gold prices added 1.6% while silver prices jumped 2.6%. Money Morning Resource Specialist Peter Krauth argues that now is the time to be bullish on commodities.
Trending Story: A Gold Price Prediction for the Coming Bull Run: $5,236 an Ounce
"This is the perfect time to lay into ample supplies of gold and silver. I think that, here at the start of 2017, we're on the cusp of a good strong bull run for both metals," he said last week.
So where are gold and silver prices heading in 2017? Read Krauth's latest forecast, right here.
Stock Market News and Top Stocks to Watch Today: Jan. 17, 2017
- The top stocks to watch today included Morgan Stanley (NYSE: MS). The investment firm topped Wall Street earnings expectations. Shares of MS stock are hovering near an eight-year high thanks to a post-election rally.
- In deal news, Exxon Mobil Corp. (NYSE: XOM) announced plans to pay $5.6 billion in stock to purchase several companies that control acreage in New Mexico. The deal will double Exxon's holdings in the Permian basin. The firm will own roughly 3.4 billion barrels of oil equivalent in the region.
- Investors should keep an eye out for shares of Tesla Motors Inc. (Nasdaq: TSLA) in the months ahead. Money Morning Options Trading Specialist Tom Gentile believes that the Tesla stock price could hit $300 a share. And if you want to maximize the total gains you could make from that sort of pop, learn more about purchasing options contracts. Here's everything you need to know.
- Shares of Netflix Inc. (Nasdaq: NFLX) slipped despite news that the stock received an upgrade from Mizuho ahead of its earnings report. The investment firm upgraded the stock from "Neutral" to "Buy" and set a price target of $152.00 per share. The call comes on expectations that Netflix will see customer growth in the international markets. Netflix will report earnings on Wednesday after the bell. Analysts anticipate the company will report $2.47 billion in revenue, a 35 % increase compared to the same period last year.
- After the bell, look for additional earnings reports from CSX Corp. (NYSE: CSX), United Continental Holdings Inc.(NYSE: UAL), ADTRAN Inc. (Nasdaq: ADTN), and Interactive Brokers Group Inc. (Nasdaq: IBKR)
Wednesday's U.S. Economic Calendar (all times EST)
- MBA Mortgage Applications at 7 a.m.
- Consumer Price Index at 8:30 a.m.
- Redbook at 8:55 a.m.
- Industrial Production at 9:15 a.m.
- Housing Market Index at 10 a.m.
- Minneapolis Federal Reserve Bank President Kashkari speaks at 10 a.m.
- Beige Book at 2 p.m.
- Federal Reserve Chair Janet Yellen speaks at 3 p.m.
- Treasury International Capital at 4 p.m.
Must Read – This Great Depression-era "Secret" Helped Transform Two Teachers into Millionaires: Donna and Dave R. were both teachers in Boston. But today they're retired millionaires who are also earning $10,000 a month in income. Their secret? Much of their wealth is due to a Great Depression-era "program" most have no idea exists. Full Story
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.