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Today's Dow Jones news is highlighted by rising stocks ahead of another busy day of earnings reports and economic data.
All eyes are on the U.S. Labor Department this morning as it prepares to release the January jobs report. Investors are curious about the health of the U.S. labor market after the U.S. Federal Reserve elected to not raise interest rates.
The economic calendar also includes a speech by Chicago Federal Reserve President Charles Evans and the January update to the ISM Non-Manufacturing Index.
Yesterday, the Dow Jones fell six points despite another round of positive economic data. Investors continue to fret over emerging geopolitical issues between President Donald Trump and several nations around the globe. Investors were also keeping an eye on a breaking story about Japan's role in creating jobs in the United States (for more on this, click here.)
Let's look at the numbers from Thursday for the Dow, S&P 500, and Nasdaq:
Dow Jones: 19,884.91; -6.03; -0.03%
S&P 500: 2,280.85; +1.30; +0.06%
Nasdaq: 5,636.20; -6.45; -0.11%
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 seven-point gain as investors prepare for the release of the January jobs report. Investors are optimistic that the labor market is still tightening after a strong unemployment benefits report Thursday and an extremely positive private sector jobs report from ADP. Economists anticipate the unemployment rate for December will fall into a range between 4.6% and 4.7%.
The Wall Street Journal reports President Donald Trump is taking steps to unwind the Dodd-Frank Act of 2010. The law was signed in the wake of the financial crisis. Trump is expected to sign an executive order that aims to "water down" the existing law. Trump's advisers have complained that the law has pushed billions of dollars in unnecessary regulatory costs on to financial institutions. But that's not all that Trump is set to do Friday.
According to the same report, Trump is expected to halt the implementation of the rule that requires retirement advisers to operate in their clients' best interests. The administration says that it needs more time to review the rule before making a decision on its future. If you want to learn about the fiduciary rule, who is working to kill the rule, and what it means for your retirement, click here.
Crude oil prices were pushing higher after the United States threatened to issue new sanctions on Iran over its recent ballistic missile test. Oil prices are also on the rise thanks to increased optimism that OPEC members and Russia will meet their goals to cap excessive production.
Also, to help investors profit as oil prices rise, we've got the best oil stocks to buy this year. These three stocks are going to provide investors with healthy gains in 2017 and beyond.
But the big story is Snap Inc., the parent company of Snapchat.
On Thursday, the company made public its plans to raise as much as $3 billion in an initial public offering. The company is expected to go public in March, and investors are wondering if they should pile into the largest IPO since Alibaba Group Holding Ltd. (NYSE: BABA).
Don't Miss: Our List of the Top 10 IPOs to Watch in 2017
That's why Money Morning has created a free guide with everything you need to know before the Snapchat IPO.
You can find our Snapchat stock guide, right here.
Stocks to Watch Today, Feb. 3, 2017
- In deal news, shares of Macy's Inc. (NYSE: M) pushed up 5% on rumors that the company could be seeking a suitor. Reuters reports that the outgoing CEO Terry Lundgren has expressed interest in offers from companies. The markets appear deeply concerned about the rising investment costs tied to the firm's new warehouses.
- In earnings news, shares of Amazon.com Inc. (Nasdaq: AMZN) are off more than 4% after the e-commerce giant fell well short of Wall Street's earnings expectations after the bell yesterday. The company reported a huge decline in operating income during a very busy quarter.
- Meanwhile, shares of Chipotle Mexican Grill Inc. (NYSE: CMG) slid 0.5% in pre-market hours as the casual dining giant topped fourth-quarter profit expectations but fell slightly short of revenue forecasts. The company continues to attempt its turnaround after a food-borne illness scandal rocked the stock and its reputation among customers.
- Keep an eye out for additional earnings reports from Atwood Oceanics (NYSE: ATW), Hershey Co. (NYSE: HSY), Clorox Corp. (NYSE: CLX), Phillips 66 (NYSE: PSX), AutoNation (NYSE: AN), and Regis Corp. (NYSE: RGS).
Today's U.S. Economic Calendar (all times EST)
- Employment Situation at 8:30 a.m.
- Chicago Federal Reserve President Charles Evans speaks at 9:15 a.m.
- PMI Services Index at 9:45 a.m.
- Factory Orders at 10 a.m.
- ISM Non-Manufacturing Index at 10 a.m.
- Baker Hughes Rig Count at 1 p.m.
Trump's Secret Weapon Against Chinese Aggression: Hostilities in the South China Sea now seem imminent, and the Trump administration could be on the verge of its first major crisis. But thanks to a small $6 U.S. defense firm with a top-secret new technology, China is about to be taken to the woodshed. Frankly, you have to see it to believe it…
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.