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Today's stock market news features Dow futures sliding in pre-market hours as investors weighed the sustainability of the post-election rally and eyed oil prices, which were dipping.
Crude oil prices are falling after the U.S. government announced that domestic inventory levels have increased for the seventh consecutive week. On the global front, world stock markets were dipping lower overnight, as investors took profits off the table and eyed U.S. tax reforms.
On Thursday, the Dow pushed higher despite concerns about a possible interest rate hike and falling oil prices. The index rallied again after President Trump pledged to bring millions of jobs back to the United States. Despite the pledge to bolster U.S. manufacturing, the president offered few details of his plan.
Let's look at the numbers from Thursday for the Dow, S&P 500, and Nasdaq:
Dow Jones: 20,810.32; +34.72; +0.17%
S&P 500: 2,363.81; +0.99; +0.04%
Nasdaq: 5,835.51; -25.12; -0.43%
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 an 73-point slide as investors took post-election profits off the table in the wake of a new record high for the index. The Dow finished Thursday within striking distance of 21,000. However, a mix of underwhelming retailer earnings reports and growing geopolitical concerns are weighing on investor sentiment.
Investors are keeping an eye on Berkshire Hathaway Inc. (NYSE: BRK.A). On Saturday, the company's chairman Warren Buffett will send his annual letter to shareholders. Once again, Buffett will likely extol the benefits of passive investing and discuss his views on Berkshire's recent developments, global politics, and the actions of various money managers.
Silver and gold prices were pushing higher again Friday. The price of silver added another 1.2%, while gold prices ticked to a near-four-month high. Increasing geopolitical concerns have pushed precious commodity prices higher in recent weeks. And Money Morning Global Resource Specialist Peter Krauth says that the rally is just getting started.
Krauth says that silver prices have the potential upside of adding another 33% in 2017. Here's a recap of the latest silver price catalysts and how you can make a nice profit by investing in the industrial metal.
Meanwhile, Krauth projects that gold prices could easily hit $1,400 per ounce in 2017. And while gold prices are set for a major rally, the best way to make money is to invest in the best gold stocks to buy. The stocks that we have picked out for investors have the potential upside of 65.8% this year. Check them out right now.
Crude oil prices were up slightly on news that U.S. crude inventories increased for the seventh consecutive week. Yesterday, the U.S. Energy Information Administration reported that domestic crude supplies increased by 564,000 barrels last week. While the uptick has crude inventories near record levels, traders were more focused on the 1.5-million-barrel draw at the nation's largest delivery hub in Cushing, Okla.
The WTI crude oil price today slid 0.7%. Brent crude dipped nearly 0.8%. Prices are likely to fluctuate as investors eye the weekly rig count released by Baker Hughes Inc. (NYSE: BHI). Look for this report later this afternoon.
But the big news is President Donald Trump and new announcements on his economic policies...
According to a report released Thursday, one of Trump's chief economic promises is likely to be delayed until 2018. Yesterday, Axios Media Co. claimed that the new POTUS will likely move his proposed $550 billion infrastructure spending plan back a year in order to address other policy issues his administration considers more pressing.
The announcement is a blow to investors who have been eyeing infrastructure stocks that are poised to benefit from this huge groundswell in government spending. But given the ongoing gridlock in Washington, Trump has chosen to prioritize three major policy initiatives.
Stocks to Watch Today, Feb. 24, 2017
- In earnings news, shares of the JCPenney Co. Inc. (NYSE: JCP) fell more than 3% in pre-market hours after the embattled retailer announced plans to sell up to 140 stores in the next few months. The company did beat lowering earnings and revenue expectations, but it's becoming increasingly difficult for the company to compete in today's world dominated by e-commerce. Money Morning Global Credit Strategist Michael Lewitt explains that brick-and-mortar retail is dying. And JCPenney isn't the only company on the slide. Lewitt explains that the unstoppable trend is taking a huge bite out of one of the most prominent food retailers today. Here's how you can profit on the trend.
- Meanwhile, shares of Shares of Hewlett Packard Enterprise Co. (NYSE: HPE) dropped more than 6.5% after the computer hardware giant slashed its 2017 profit forecast.
- Shares of Hilton Worldwide Holdings Inc. (NYSE: HLT) were flat in pre-market hours despite news that the company has initiated a $1 billion stock buyback program. The company also announced it will change its name to Hilton Inc. on March 6.
- Keep an eye out for earnings reports from Foot Locker Inc. (NYSE: FL), Rowan Companies Inc. (NYSE: RDC), Del Frisco's Restaurant Group Inc. (Nasdaq: DFRG), Cabot Oil & Gas Corp. (NYSE: COG), and EchoStar Corp. (Nasdaq: SATS).
Today's U.S. Economic Calendar (all times EST)
- New Home Sales at 10 a.m.
- Consumer Sentiment at 10 a.m.
- Baker Hughes Rig Count 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.