Start the conversation
Comment on This Story
Or to contact Money Morning Customer Service, click here.
In Dow Jones news today, the Dow fell after a sharp decline in banking stocks.
Investors are also wondering if and when President Donald Trump and Congress will move on reforming the corporate tax code and repealing Dodd-Frank.
With most of these policy actions largely priced into the market, timing is essential.
A delay until 2018 could rattle confidence, particularly at a time when investors are growing increasingly worried about the stability of the European financial sector.
Let's look at the numbers from Wednesday for the Dow, S&P 500, and Nasdaq:
Dow Jones: 20,054.34; -35.95; -0.18%
S&P 500: 2,294.67; +1.59; +0.07%
Nasdaq: 5,682.45; +8.24; +0.15%
Now, here's a look at today's most important market events and stocks, plus a preview of Thursday's economic calendar.
Dow Jones News Today: Dow Slides After Bank Stocks Slump
The Dow Jones fell 35 points as investors continued to worry about the timing of President Trump's economic plans. Shares of JPMorgan Chase & Co. (NYSE: JPM) fell close to 1%, while shares of Goldman Sachs Group Inc. (NYSE: GS) slipped more than 0.8%.
Trending: Top 10 2017 IPOs to Watch
Crude oil prices were rising despite news that U.S. inventory levels increased for the fifth consecutive week. According to the Energy Information Administration, the United States saw a supply increase of 13.8 million barrels. That is far higher than analysts had projected.
Energy traders were optimistic about North American energy production after the U.S. Army announced it would provide the last permit for the construction of the Dakota Access oil pipeline. The pipeline project has been at the center of major protests by Native American tribes and climate change activists. The pipeline will connect the shale oil fields of North Dakota to Illinois hubs, which connect to the southeastern refinery network.
The WTI crude oil price today gained 0.4%. Meanwhile, Brent crude added 0.2%.
But the big news today is the chatter surrounding Snapchat.
Must Read: 5 of the Best Stocks to Buy Now
Turn on CNBC or read the pages of mainstream periodicals, and they'll tell you that this is one of the greatest money-making opportunities for an IPO in a long time. Many pundits are saying that it is time to invest in Snapchat stock when it goes public in March.
But should you?
A lot of banks and accredited investors will make a lot of money when this company debuts. But the average investor may have to pay a huge premium just for a chance to own the stock.
We urge investors to take a different strategy. Money Morning Director of Tech & Venture Capital Research Michael A. Robinson has a way to play the Snapchat IPO that limits risk and can maximize your profits. You can find out more about Robinson's advice, right here.
Top Stocks to Watch Today: Feb. 8, 2017
- It was another wild day in the retail industry, but not because of earnings season or fashion trends. President Trump took direct aim at Nordstrom Inc. (NYSE: JWN) after the retailer dropped the fashion brand of his daughter Ivanka Trump. Shares of JWN climbed over 4% on the day.
- Shares of Walt Disney Co. (NYSE: DIS) finished flat after the firm's current CEO Bob Iger announced he is open to staying on as chief executive when his contract expires in 2018. Iger also said that he had a plan to deal with two of the company's biggest challenges: the decline of ESPN subscribers and its impact on advertising revenue. The sports network now has fewer than 88 million subscribers. That is well off from its 2011 peak of 100.1 million. Iger said Wednesday too much pessimism exists around ESPN and believes his strategy to bundle the channel with other Disney cable networks on digital television offerings will help stabilize its customer base.
- In earnings news, shares of Time Warner Inc. (NYSE: TWX) were on the rise after the company topped Wall Street earnings expectations. The cable giant is still awaiting the approval of its plan to sell itself to AT&T Inc. (NYSE: T) for roughly $85.4 billion. Time Warner posted earnings per share (EPS) of $1.25, while expectations were set at $1.19. Last year, Time Warner had an EPS of $1.06. Earnings growth year over year is 13.5%.
- Meanwhile, shares of Allergan Plc. (NYSE: AGN) gained more than 3% after the Botox manufacturer easily topped Wall Street earnings and revenue expectations for the December-ending quarter.
- After the bell, look for additional earnings reports from Whole Foods Market Inc. (Nasdaq: WFM), Yum! Brands Inc. (NYSE: YUM), and iRobot Corp. (Nasdaq: IRBT).
Thursday's U.S. Economic Calendar (all times EST)
- Jobless Claims at 8:30 a.m.
- Louis Federal Reserve Bank President James Bullard Speaks at 9:10 a.m.
- Bloomberg Consumer Comfort Index at 9:45 a.m.
- Wholesale Trade at 10 a.m.
- EIA Natural Gas Report at 10:30 a.m.
- 30-Year TIPS Announcement at 11 a.m.
- Three-Month Bill Announcement at 11 a.m.
- Six-Month Bill Announcement at 11 a.m.
- 30-Year Bond Auction at 1 p.m.
- Chicago Federal Reserve Bank President Charles Evans Speaks at1 p.m.
- Fed Balance Sheet at 4:30 p.m.
- Money Supply at 4:30 p.m.
Must See: What do billionaires Peter Lynch, President Trump, and a retired cop from Northridge have in common? They've all benefitted enormously from a curious Great Depression-era "program." And even though most have no idea this exists, it could be worth $68,870 or more to the average American. Continue reading...
Follow Money Morning on Facebook and Twitter
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.