A string of positive economic data pulled investors back into equities Thursday, a day after the Dow plummeted. In addition to positive jobs data, the Philadelphia Federal Reserve announced that its business activity index surpassed expectations in May. The Nasdaq and S&P 500 also pushed higher on the back of Apple Inc. (Nasdaq: AAPL). AAPL gained more than 1.5% after it experienced its worst trading day in a year.
Crude oil prices were ticking higher as traders expect OPEC producers to extend a deal to cap excessive production around the globe. The small uptick comes as investors continue to monitor near-record crude inventory levels in the United States. WTI crude oil price today added 0.53%, and Brent crude gained 0.54%.
The U.S. central bank is back in focus after Cleveland Federal Reserve Bank President Loretta Mester argued for higher interest rates. She said that the central bank should raise rates at least two more times this year. However, Wall Street doesn't agree that such a pace of rate hikes will happen.
In Washington, Sen. Elizabeth Warren (D-MA) generated headlines after she blasted U.S. Treasury Secretary Steven Mnuchin over his position regarding a "21st Century Glass-Steagall Act." Warren criticized Mnuchin for supporting the separation of commercial lending and investment banking functions but not wanting to break up the nation's largest financial institutions. She accused him of engaging in "Orwellian" doublespeak on the issue. Here's how a new Glass-Steagall Act could impact the markets and banks.
The Carlyle Group LP (Nasdaq: CG) CEO David Rubenstein told attendees at the 2017 SALT Conference that he doesn't expect healthcare or tax reform this year. The private-equity leader said that Congress was too partisan to take action and that finding ways to produce a revenue neutral bill would be very unlikely. Rubenstein also weighed in on the special investigation surrounding the Trump administration and stressed patience. He said that no conclusions will be made for at least six to 12 months.
3 Stocks to Watch Thursday: CSCO, WMT, FDX
Shares of Cisco Systems Inc. (Nasdaq: CSCO) fell more than 7% after the company topped Wall Street earnings expectations yesterday but reported a weaker than expected annual forecast. The global tech giant also announced intentions to slash at least 1,100 jobs as part of a larger cost-cutting initiative. The firm reported EPS of $0.60 on top of $11.94 billion in revenue. Both figures topped consensus forecasts.
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Shares of Wal-Mart Stores Inc. (NYSE: WMT) gained 3.2% after the big-box retailer's quarterly earnings beat analysts' expectations. The company reported EPS of $1.00, besting consensus forecasts of $0.96. The company reported a massive gain - a 63% jump - in digital sales. The stock is now sitting at a two-year high. But while Wal-Mart might be avoiding the "Retail Ice Age," be aware that slumping brick-and-mortar sales are pummeling the sector. In fact, investors would be wise to do this.
FedEx Corp. (NYSE: FDX) has been generating a lot of attention due to its exposure to the "WannaCry" malware attack that hit the global economy last week. Investors are now wondering if this company - and thousands like it - are finally going to take cybersecurity seriously. All signs point to yes... which means that now is the time to invest in the best cybersecurity stocks.
Look for earnings reports after the bell from Gap Inc. (NYSE: GPS), Applied Materials Inc. (Nasdaq: AMAT), Ross Stores Inc. (Nasdaq: ROST), and Autodesk Inc. (Nasdaq: ADSK).
Friday's U.S. Economic Calendar (all times EDT)
Louis Federal Reserve Bank President James Bullard speaks at 9:15 a.m.
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.