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The Dow Jones news today is Janet Yellen's testimony in front of the Senate Finance Committee later this morning. The markets are flat as investors wait to hear how she will testify.
Markets are also making sense of the resignation of Donald Trump's national security adviser Michael Flynn, who stepped down after allegedly misleading Vice President Mike Pence over a call with Russia's ambassador. Flynn told the vice president that he had not discussed potential sanctions with the Russian ambassador, a story that appears to be untrue.
The top stocks to watch for Tuesday include a manufacturer of nonalcoholic beverages, a cellphone service provider, and a cloud communications service provider.
On Monday, the Dow Jones added another 142 points and the S&P 500 reached a total market capitalization of $20 trillion as the post-Trump election rally pushed markets into record territories.
Let's look at the numbers from Monday for the Dow, S&P 500, and Nasdaq:
Dow Jones: 20,412.16; +142.79; +0.70%
S&P 500: 2,328.25; +12.15; +0.52%
Nasdaq: 5,763.96; +29.83; +0.52%
Here's a look at today's most important market events and stocks, plus a look at Tuesday's economic calendar.
What's Ahead for the Dow Jones Industrial Average Today
The Dow Jones Industrial Average projected a three-point decline as investors take a break from the Trump rally and focus on a string of events happening in Washington, D.C. today.
The U.S. Federal Reserve is in focus as four members of the central bank prepare to offer insight into its monetary policy for the road ahead. Fed Chair Janet Yellen will be the featured speaker as she prepares to give testimony before the Senate Finance Committee. Don't expect Yellen to give too many hints into the timing of the next rate hike.
Don't Miss: Top 10 2017 IPOs to Watch
Elsewhere in Washington, the U.S. Senate has approved former Goldman Sachs Group Inc. (NYSE: GS) executive Steven Mnuchin to lead the Department of Treasury. In a party-line vote, Mnuchin endured Democratic objections to his views on corporate tax reform, the Dodd-Frank Act, and the role of government in regulating the financial sector.
Crude oil prices were pushing higher Tuesday thanks to OPEC's ongoing efforts to cap excessive production. In recent trading sessions, crude prices have been rising and falling depending on the sentiment of the day. Though OPEC has established 90% compliance in its deal to reduce global crude output by 1.8 million barrels, rising U.S. production continues to weigh on global sentiment.
The WTI crude oil price today added 0.8%. Brent crude gained 0.9%.
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Stocks to Watch Today, Feb. 14, 2017
- In deal news, the $34 billion deal between Aetna Inc. (NYSE: AET) and Humana Inc. (NYSE: HUM) is officially dead. The health insurance giants were unable to receive approval from a federal court after a judge argued the deal would stifle competition in the Medicare Advantage program. According to terms of the breakup, Aetna must pay Humana a $1 billion fee. Aetna will also no longer be forced to sell certain Medicare Advantage assets to Molina Healthcare Inc. (NYSE: MOH).
- Meanwhile, shares of General Motors Co. (NYSE: GM) added nearly 4% on news that France's PSA Group is evaluating a deal to purchase European carmaker Opel from GM.
- In earnings news, shares of Credit Suisse Group AG (NYSE ADR: CS) added more than 1.2% in pre-market hours. The Swiss banking giant reported a larger than expected loss in the fourth quarter after it paid a massive settlement to the Department of Justice. Still, the company announced plans to slash up to 6,500 jobs and said that posted a big boost to its asset growth in its wealth management division.
- Keep an eye out for earnings reports from Fossil Inc. (Nasdaq: FOSL), Dr Pepper Snapple Group Inc. (NYSE: DPS), Devon Energy Corp. (NYSE: DVN), Agilent Technologies Inc. (NYSE: A), LendingClub Corp. (NYSE: LC), Express Scripts Holding Co. (NYSE: ESRX), T-Mobile US Inc. (Nasdaq: TMUS), SolarEdge Technologies Inc. (Nasdaq: SEDG), and Molson Coors Brewing Co. (NYSE: TAP).
Today's U.S. Economic Calendar (all times EST)
- NFIB Small Business Optimism Index at 6 a.m.
- PPI-Final Demand at 8:30 a.m.
- Richmond Federal Reserve Bank President Jeffrey Lacker speaks at 8:50 a.m.
- Redbook at 8:55 a.m.
- Federal Reserve Chair Janet Yellen speaks at 10 a.m.
- Atlanta Federal Reserve Bank President Dennis Lockhart speaks at 12:50 p.m.
- Dallas Federal Reserve Bank President Robert Kaplan speaks 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.