Dow Jones Industrial Average Flat as Banking Rally Fades, Energy Stocks Slide

Garrett Baldwin

In Dow Jones news today, the Dow couldn't maintain its positive momentum after breaching the 20,600 mark.

Though President Donald Trump's proposed economic policies have fueled an incredible run in the financial sector, markets took a break to analyze earnings reports and fresh economic data.

Once again, President Trump dominated the headlines. The president held a press conference that covered his new nominee to lead the U.S. Labor Department, ongoing relations between the United States and Russia, and multiple rounds of his contempt for the mainstream media.

But the story that went under the radar was coming out of Europe.

During a recent hearing at the European Parliament, European Central Bank President Mario Draghi claimed that President Trump's economic policies could cause another financial crisis.

Here is Draghi's stunning statement and what it means for your money right now.

Let's look at the numbers from Thursday for the Dow, S&P 500, and Nasdaq:

Dow Jones: 20,619.77; +7.91; +0.04%

S&P 500: 2,347.22; -2.03; -0.09%

Nasdaq: 5,814.90; -4.54; -0.08%

Now, here's a look at today's most important market events and stocks, plus a preview of Friday's economic calendar.

Dow Jones News Today: Dow Dips as Financial Rally Fades

The Dow Jones was down for most of the day. By the end of the trading day, it climbed just seven points. Banking and energy stocks finally lost steam as investors turned their attention away from President Donald Trump's regulatory efforts. Shares of Wells Fargo & Co. (NYSE: WFC) led the banking downturn and fell close to 1% after it received a stock downgrade from European investment bank Credit Suisse Group AG (NYSE ADR: CS).

Trending: Essential Guide to Buying Gold & Silver

Silver prices continued to climb, and gold prices added another 0.5% on the day. While investors have been cheering the record-toppling gains in the Dow and Nasdaq, the recent rally in silver prices has failed to make front-page news. As we predicted just a few weeks ago, silver prices are at the onset of a big rally in 2017. As Money Morning Resource Specialist Peter Krauth explains, there's still time to get in on this rally.

Crude oil prices were mixed as investors weighed the positives of OPEC's continued efforts to curb excessive supply against new data showing U.S. crude production and inventories are on the rise. OPEC's deal that took effect on Jan. 1 has produced very positive results. Investors are now even speculating that the global oil cartel could extend production cuts beyond the planned target of 1.8 million barrels per day (bpd). While that story has traders cheering, the prospect of higher U.S. production has been supported by rising domestic rig counts and massive inventory jumps.

The WTI crude oil price today added 0.3%. Brent crude dipped 0.09%.

But the big news today is the Snapchat IPO.

Though the Snapchat IPO date has not been set, the company foresees a valuation between $19.5 billion and $22.2 billion. The firm will price shares between $14 and $16, according to a new regulatory filing released today.

It's an incredible valuation for a company that isn't profitable, and Snapchat admitted in its S-1 filing that it may never run a profit. Snapchat stock should therefore be considered a long-term investment, and a risky one that could cost you a bundle on its first day of public trading.

Must Read: Virtual Reality Stocks: A Beginner's Guide to This $33.98 Billion Market

On the Snapchat IPO date, Money Morning Director of Tech & Venture Capital Research Michael A. Robinson has a way investors can maximize their profits and limit their risk.

Here's your free Snapchat stock guide and how to play the Snapchat IPO date, right here.

Stock Market News and Top Stocks to Watch Today: Feb. 16, 2017

• Shares of Amazon.com Inc. (Nasdaq: AMZN) are in focus as we check in on monthly e-commerce retail sales on Friday morning. AMZN stock gained another 0.17% Thursday and is expected to continue to push higher in the days and months ahead. In fact, our new Amazon stock price prediction shows the e-commerce giant will continue to outperform traditional retailers and push to another huge milestone very soon. For our AMZN stock forecast, click here.
• Apple Inc. (Nasdaq: AAPL) dipped slightly, but shares still remain near a record high. The stock has been on a wild ride, but traders have been pushing the stock higher on news that Warren Buffett's investment firm almost quadrupled its stake in the iPhone manufacturer. According to a regulatory filing, Buffett's firm increased its total stake to 57.4 million shares last quarter. Here's why Buffett is buying AAPL stock.
• It was another busy day on the earnings front. Shares of TripAdvisor Inc. (Nasdaq: TRIP) weighed down the Nasdaq and the S&P 500 after the stock fell nearly 11% on the day. The downturn came after the company reported weaker than expected quarterly profits and revenue figures.
• After the bell, look for additional earnings reports from Arista Networks Inc. (NYSE: ANET), Flowserve Corp. (NYSE: FLS), DaVita Inc. (NYSE: DVA), WhiteWave Foods Co. (NYSE: WWAV), and Cognex Corp. (Nasdaq: CGNX).

Friday's U.S. Economic Calendar (all times EST)

• E-Commerce Retail Sales at 10 a.m.
• Leading Indicators at 10 a.m.
• Baker Hughes Rig Count at 1 p.m.
• Cleveland Federal Reserve Bank Loretta Mester speaks on Sunday at 8:15 p.m.

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Garrett Baldwin

About the Author

Browse Garrett's articles | View Garrett's research services

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.

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