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The Dow Jones Industrial Average today was dipping this morning after a weak fourth-quarter GDP report rattled investor sentiment.
Markets were on the rise as the post-election rally continued this week. The markets experienced their best two-day performance in roughly seven weeks. The Nasdaq, Dow Jones, and the S&P 500 were projected to have weekly gains.
On Thursday, the Dow gained 32 points and stayed above the 20,000 level as investors cheered President Donald Trump's pro-growth economic proposals.
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
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 Jones Industrial Average projected a 10-point decline as investors put Prime Minister Theresa May's meeting with President Donald Trump in focus. The two world leaders are expected to meet and discuss a bilateral trade deal, but markets are more interested in any potential statements about her country's planned departure from the European Union.
Markets are also reacting to the weak GDP report for the United States in the fourth quarter. The U.S. economy had its worst final quarter in five years, yielding just 1.9%. The weak report was a downer for investors who were optimistic about President Trump's economic plans to spur growth. In addition to the lackluster growth report, durable goods orders declined 0.4%.
Markets will be looking out for January consumer sentiment data later this morning.
Crude oil prices were sliding as traders focused on rising U.S. production. Oil prices had been rising in recent weeks due to increased expectations that OPEC would hit its planned cuts to halt excessive production.
However, the Energy Information Administration indicated this week that U.S. shale producers are bringing their own production back online. Crude prices have been a bit volatile in recent weeks as the ongoing battle between OPEC and U.S. crude producers continues. Investors need to learn more about why U.S. production will keep rising.
The WTI crude oil price today dipped 0.2%. Brent crude dipped 0.4%.
But the big story 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. On Thursday, he showed just how serious he is about the project. 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 Thursday. "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 yesterday. In response, the Mexican peso took a pounding against global currencies.
The total price tag is estimated to between $12 and $15 billion dollars.
The border wall could be a serious roadblock in the U.S.'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 importantly, how would the new trade agreements impact your wallet? We answer both of those questions, right here.
Stocks to Watch Today, Jan. 27, 2017:
- In deal news, shares of Verizon Communications Inc. (NYSE: VZ) are in focus on news that it is considering a deal to merge with Charter Communications Inc. (Nasdaq: CHTR).
- Shares of Microsoft Corp. (Nasdaq: MSFT) were up more than 1.1% after the firm topped earnings expectations after the bell Thursday. The software giant reported EPS of $0.83 on top of $26.06 billion in revenue. Wall Street had expected an EPS of $0.79 on top of $25.58 billion in revenue.
- In earnings news, shares of Chevron Corp. (NYSE: CVX) fell more than 2.5% after the company fell short of Wall Street earnings expectations.
- Keep an eye out for additional earnings reports from American Airlines Group Inc. (Nasdaq: AAL), Honeywell International Inc. (NYSE: HON), General Dynamics Corp. (NYSE: GD), Colgate-Palmolive Co. (NYSE: COL), AbbVie Inc. (Nasdaq: ABBV), Air Products & Chemical Inc. (NYSE: APD), NextEra Energy Inc. (NYSE: NEE), Gentex Corp. (Nasdaq: GNTX), and Franklin Resources Inc. (NYSE: BEN).
Today'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, 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.