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Today's Dow Jones news is that global markets reacted positively to the latest batch of earnings reports and economic data. Despite a downturn in global crude prices, many global stock indexes are hovering near record highs as investors anticipate stronger economic growth in the year ahead.
On Tuesday, the Dow Jones gained more than 37 points despite a sharp downturn in crude oil prices and mixed earnings reports from some of the S&P 500's largest companies. The Nasdaq hit a new all-time high, while shares of Apple Inc. (Nasdaq: AAPL) and Boeing Co. (NYSE: BA) pushed the S&P 500 to a near-record close.
Let's look at the numbers from Tuesday for the Dow, S&P 500, and Nasdaq:
Dow Jones: 20,090.29; +37.87; +0.19%
S&P 500: 2,293.08; +0.52; +0.02%
Nasdaq: 5,674.22; +10.66; +0.19%
Here's a look at today's most important market events and stocks, plus a look at Wednesday's economic calendar.
What's Ahead for the Dow Jones Industrial Average Today
The Dow Jones Industrial Average projected a one-point gain as investors eye another busy day of earnings reports and oil prices continue to slide over global supply and demand imbalances.
Gold prices are hovering near a three-month high, while silver prices are climbing. The price of silver has gained more than 9% so far in 2017. And this rally is just getting started.
Money Morning Resource Specialist Peter Krauth offers four reasons why silver prices are going to pop more than 25% in 2017. Read his latest insight, right here.
Crude oil prices were falling again as traders grow more wary of increasing inventory levels in the United States. The American Petroleum Institute (API) reported Tuesday that domestic inventories increased by 14.2 million barrels last week. That's much higher than the 2.5 million barrels expected by analysts. Traders will be keeping an eye out for the official weekly inventory report from the Energy Information Administration later this morning.
In addition to U.S. figures, new data from China shows that demand in the world's second-largest economy continues to stall. According to Reuters, demand growth in China slowed to 2.5% in 2016. That's down from the 3.1% growth in 2015 and 3.8% in 2014.
The WTI crude oil price today dipped 0.8%. Brent crude fell 0.5%.
But the big story is the record highs touched by the Nasdaq and Dow Jones this week.
These lofty valuations have made it very difficult to find value in the markets.
That's why Money Morning Capital Wave Strategist Shah Gilani is here to help you make money. Gilani has identified one of best stocks to own right now. He calls this company one of the best value stocks currently out there, and it will only "go to the moon" in terms of value when President Donald Trump and Congress reform the U.S. corporate tax code.
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Stocks to Watch Today, Feb. 8, 2017
- In earnings news, shares of The Walt Disney Co. (NYSE: DIS) were up 0.2% in pre-market hours after the iconic entertainment giant announced that earnings fell by 9% in the fiscal first quarter. Disney reported revenue of $14.8 billion and earnings of $1.55 a share. Wall Street analysts had anticipated $15.3 billion in revenue and earnings of $1.50 per share. The problems for Disney accelerated at its cable networks business. Its ESPN franchise continued to lose customers as Americans continue to cut the cord. The sports network now has fewer than 88 million subscribers. That is well off from its 2011 peak of 100.1 million.
- Meanwhile, shares of Gilead Sciences Inc. (Nasdaq: GILD) plunged more than 5.4% after the company reported a drop in fourth-quarter earnings and presented an underwhelming outlook in the first quarter. The company said that it experienced weaker than expected sales in its hepatitis C drugs over the last 12 months.
- Keep an eye out for additional earnings reports from Whole Foods Market Inc. (Nasdaq: WFM), Yum! Brands Inc. (NYSE: YUM), GrubHub Inc. (NYSE: GRUB), Allergan Plc. (NYSE: AGN), Cognizant Technology Solutions Corp. (Nasdaq: CTSH), Alaska Air Group Inc. (NYSE: ALK), iRobot Corp. (Nasdaq: IRBT), Time Warner Inc. (NYSE: TWX), Humana Inc. (NYSE: HUM), and PayCom Software Inc. (NYSE: PAYC).
- Finally, not all U.S. industries are benefiting from the recent stock market rally. As U.S. consumers continue to migrate toward e-commerce and shift away from physical shopping locations, the retail industry has plunged like a brick from a skyscraper. That's what we're targeting the retail sector for our top three stocks to short this month. Want to know the three retail stocks to short today? Read them right here.
Today's U.S. Economic Calendar (all times EST)
- MBA Mortgage Applications at 7 a.m.
- EIA Petroleum Status Report at 10:30 a.m.
- 10-Year Note Auction 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.