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The Dow Jones Industrial Average today was sliding as President Donald Trump prepares for his first full week in office.
The markets are still digesting Trump's protectionist inaugural address, which pledged to put "America first" through a process of buying American products and hiring American workers. Trump has promised to renegotiate the North American Free Trade Agreement (NAFTA) and said he plans to withdraw from the Trans-Pacific Partnership.
On Friday, the Dow gained 94 points on the first day of Donald Trump's presidency. Proctor & Gamble Co. (NYSE: PG) gave the biggest boost to the Dow after the conglomerate easily beat Wall Street expectations for its quarterly report. However, General Electric Co. (NYSE: GE) stock slipped after the firm matched earnings expectations but fell short of revenue forecasts.
Let's look at the numbers from Friday for the Dow, S&P 500, and Nasdaq:
Dow Jones: 19,827.25; +94.85; +0.48%
S&P 500: 2,271.31; +7.62.; +0.34%
Nasdaq: 5,555.33; +15.25; +0.28%
Here's a look at today's most important market events and stocks, plus a look at Monday's economic calendar.
What's Ahead for the Dow Jones Industrial Average Today
The Dow Jones Industrial Average projected a 19-point decline ahead of a busy day of earnings reports and speculation on the Trump administration's economic policies. Despite increased expectations for corporate tax reform and deregulation, investors are concerned about protectionist policies and their impact on global trade. President Trump's inaugural address Friday stirred up fears of protectionism after he said that his policies will endorse the "Buy American, Hire American" motto.
Many investors appear to be taking a "wait and see" approach with the Trump administration before they make and big, bold predictions. But Money Morning Technical Trading Specialist D.R. Barton says that you can make a lot of money due to other people's uncertainty. Barton sat down with Money Morning Executive Editor Bill Patalon to discuss on such trade this weekend. Check out out how you can make money this week, right here.
Crude oil prices were falling Monday as increased production levels in the United States overshadowed supply cuts by OPEC. During a meeting among OPEC and non-OPEC producers over the weekend, the global oil cartel said they have taken roughly 1.5 million barrels per day off the market. However, on Friday, Baker Hughes Inc. (NYSE: BHI) reported the largest weekly increase in domestic production rigs in nearly four months. U.S. oil production is now up roughly 6% since mid-2016.
The WTI crude oil price today fell 1.4%. Brent crude dipped 1.1%.
Money Morning Global Energy Strategist Dr. Kent Moors expects both oil and natural gas prices to continue rising by at least 20% in 2017. With energy prices set to climb, investors should read about our three best energy stocks to own in 2017. Check them out, right here.
But the big story is the Affordable Care Act.
On Friday, President Donald Trump signed an executive order starting the process of repealing Obamacare. The new president is expected to begin working with Congress this week to provide an alternative to former President Barack Obama's signature healthcare law.
Stocks to Watch Today, Jan. 23, 2017
- Shares of United Continental Holdings Inc. (NYSE: UAL) were back in focus after yet another computer glitch forced the grounding of all flights Sunday evening. The company paid for all change fees and issued travel waivers to customers. However, thousands of travelers took to social media and battered the firm on Twitter Inc. (NYSE: TWTR) and Facebook Inc. (Nasdaq: FB).
- In earnings news, McDonald's Corp. (NYSE: MCD) stock was up 0.8% after the company reported fourth-quarter earnings. Despite expectations that the company faced poor winter weather and slow traffic in December, the firm topped earnings, revenue, and same-store sales expectations. For the quarter, McDonald's reported an EPS of $1.45 on top of $6.05 billion in revenue. Analysts anticipated an EPS of $1.41 on top of $5.99 billion in revenue.
- Meanwhile, shares of Halliburton Co. (NYSE: HAL) fell 0.4% after the company fell short of quarterly revenue expectations and reported losses of $5.7 billion. The sharp downturn came after the company failed to acquire Baker Hughes Inc. (NYSE: BHI) due to regulatory scrutiny. The firm has also been under pressure due to the two-year downturn on global oil prices.
- Keep an eye out for additional earnings reports from Yahoo! Inc. (Nasdaq: YHOO), Brown & Brown Inc. (NYSE: BRO), Silicon Motion Technologies Corp. (Nasdaq ADR: SIMO), Woodward Inc. (NYSE: WWD),
Today's U.S. Economic Calendar (all times EST)
- Four-Week Bill Announcement at 11 a.m.
- Three-Month Bill Auction at 11:30 a.m.
- Six-Month Bill Auction at 11:30 a.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.