The Dow Jones Industrial Average today stayed above the 20,000 level as investors cheered President Donald Trump's pro-growth economic proposals.
Despite concerns over protectionist policies by the president in recent days, the markets continue to rally on the hopes of corporate tax reform, income tax reform, and reduced regulatory burdens in the financial, energy, and agricultural sectors.
President Trump has delivered on his campaign promises so far, and it appears he's ready to take his battle with Mexico to the next level.
Let's look at the numbers from Thursday for the Dow, S&P 500, and Nasdaq:
Dow Jones: 20,100.91; +32.40; +0.16%
S&P 500: 2,296.68; -1.69; -0.07%
Nasdaq: 5,655.18; -1.16; -0.02
Now, here's a look at today's most important market events and stocks, plus a preview of Friday's economic calendar.
DJIA Today: Market Stays Above 20K Barrier
The CBOE Volatility Index (VIX), largely considered the market's fear gauge, hit its lowest level in two years around 10.9.
Crude oil prices rallied thanks to increased optimism on the global economy and ongoing weakness in the U.S. dollar. The WTI crude oil price today added 2%. Meanwhile, Brent crude climbed over 2.1%.
Gains were actually held back due to yesterday's government report that U.S. inventories had increased last week by a larger than expected amount. The Energy Information Administration said that crude stocks increased by 2.8 million barrels last week.
Shares of Exxon Mobil Corp. (NYSE: XOM) gained 0.2%, and Chevron Corp. (NYSE: CVX) fell by 0.1%.
But the big news today is the fracture of relations between Mexico and the United States.
Since the onset of his pursuit of the White House, President Donald Trump has told Americans that he will build a wall between the two countries in order to stop undocumented migrants from coming into the United States. The total price tag is estimated to hover in the tens of billions of dollars. What's more, Trump has sworn that Mexico will pay for the wall.
"The U.S. has a 60-billion-dollar trade deficit with Mexico," Trump wrote. "It has been a one-sided deal from the beginning of NAFTA with massive numbers of jobs and companies lost. If Mexico is unwilling to pay for the badly needed wall, then it would be better to cancel the upcoming meeting."
Mexico's President Enrique Peña Nieto promptly canceled the meeting. In response, the Mexican peso took a pounding against global currencies.
The border wall could be a serious roadblock in the U.S.' ability to get Mexico to sit down and renegotiate NAFTA. But one thing is for sure: President Trump renegotiating NAFTA has become a major priority for the White House. So, how can Trump bring Mexico and Canada to the negotiating table? And more important, how would the new trade agreements impact your wallet? We answer both of those questions, right here.
Stock Market News and Top Stocks to Watch Today: Jan. 26, 2017
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- In deal news, shares of Johnson & Johnson (NYSE: JNJ) stock fell 0.8% after announcing it will buy out biopharmaceutical company Actelion Ltd. (OTCMKTS: ALIOF). The buyout is for $30 billion and is an all cash offer. The deal gives Johnson & Johnson an avenue to increase its presence in the biotech treatments sector.
- Meanwhile, shares of Verizon Communications Inc. (NYSE: VZ) were off more than 1.3% on news that it is considering a deal to merge with Charter Communications.
- In earnings news, Ford Motor Co. (NYSE: F) shares fell more than 3% after the company topped Wall Street revenue expectations in the Q4 but fell well short of profit estimates. The automotive giant reported earnings per share (EPS) of $0.30, well below consensus expectations of $0.34.
- After the bell, look for earnings reports from Microsoft Corp. (Nasdaq: MSFT), Intel Corp. (Nasdaq: INTC), Alphabet Inc. (Nasdaq: GOOGL), Starbucks Corp. (Nasdaq: SBUX), VMware Inc. (NYSE: VMW), and Paypal Inc. (Nasdaq: PYPL).
Friday's U.S. Economic Calendar (all times EST)
- Durable Goods Orders at 8:30 a.m.
- GDP at 8:30 a.m.
- Consumer Sentiment at 10 a.m.
- Baker Hughes Rig Count at 1 p.m.
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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.