Markets are reacting to yesterday's earnings report by Apple Inc. (Nasdaq: AAPL), which easily topped Wall Street expectations. But don't discount the impact of today's meeting by members of the Fed Open Market Committee.
On Tuesday, the Dow retreated another 107 points and the CBOE Volatility Index roared close to 4% thanks to underwhelming earnings reports and lackluster economic data. A week after crossing the 20,000 barrier, sentiment is turning negative.
Let's look at the numbers from Tuesday for the Dow, S&P 500, and Nasdaq:
Dow Jones: 19,864.09; -107.04; -0.54%
S&P 500: 2,278.87; -2.03; -0.09%
Nasdaq: 5,614.79; +1.07; +0.02%
Here's a look at today's most important market events and stocks, plus a look at Wednesday's economic calendar.
The Dow Jones Industrial Average projected a 51-point gain as investors react to Apple's strong earnings and revenue and markets prepare for another busy day of data and quarterly reports.
In labor news, the United States saw private payrolls increase by 246,000 in January, according to a report from ADP and Moody's Analytics. That figure easily topped the 145,000 new jobs expected by economists and a sign in confidence by employers.
The Federal Reserve is in focus as the central bank concludes its first two-day meeting on monetary policy of 2017. According to CME FedWatch, the markets have set a 96% probability that the Fed will leave its benchmark interest rate unchanged. That said, markets will be quite interested in hearing the reactions of the U.S. central banks to the economic policies of President Donald Trump and if their expectations for three rate hikes in 2017 are still swirling.
Editor's Note: This Is a 2017 Stock Market Outlook You Won't Find Anywhere Else
Crude oil prices were rising overnight despite news that U.S. supplies continue to offset the impact of OPEC's deal to cap excessive oil production. This morning, traders will be looking out for an official supply report from the Energy Information Administration. The update comes after the American Petroleum Institute (API) announced that U.S. inventories increased last week by roughly 5.8 million barrels. According to API, U.S. crude inventory levels are now at 488 million barrels.
The WTI crude oil price today added 0.6%. Brent crude gained 0.7%.
Gold prices hit a two-week high ahead of today's announcement on interest rates by the Federal Reserve. Gold prices pushed higher Tuesday after President Trump demanded that U.S. pharmaceutical companies produce products in the United States. A senior adviser for President Trump also issued a statement on the valuation of other nations' currencies. Peter Navarro, the head of Trump's National Trade Council, said that Germany is using a "grossly undervalued" euro to gain competitive advantage against other exporting nations.
Don't Miss: Our Essential Guide to Buying Gold and Silver
Money Morning Resource Specialist Peter Krauth just recommended that investors own more gold in 2017. That's because he projects an 18% gain for the yellow metal in the year ahead.
But the big story is President Trump's Supreme Court nominee. Read everything you need to know about Neil Gorsuch, Supreme Court nominee.
He's a Colorado judge who has been nominated by President Trump to replace the late Judge Antonin Scalia on the nation's highest court.
But a battle is brewing in the Senate. And The New York Times has already dubbed him a nominee for a stolen seat. Learn all about Neil Gorsuch and what his placement would mean for the United States, right here.
Urgent: Feds use obscure loophole to threaten retirees. If you have a 401(k), IRA, or any type of retirement account, this could cause you to miss out on $68,870 or more. Learn More...
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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.