Today's strong private sector jobs report from ADP has investors thinking ahead to the June FOMC meeting. Markets anticipate that the U.S. Federal Reserve will raise interest rates this month, but what about the opinions of members of the central bank? Today, we heard from San Francisco Federal Reserve Bank President John Williams, who argued that the economy could justify three interest rate hikes in 2017. Williams went on to argue in favor of fourth rate hike this year should the economy receive an additional boost.
In other economic news, U.S. factory production increased. The Institute for Supply Management (ISM) announced its monthly reading in May ticked higher from April. The index remains slightly below its two-and-a-half-year high that it hit in February.
Must See: This Great Depression-Era "Secret" Helped Transform Two Teachers into Millionaires. Read more...
The Dow is back above 21,000 but has struggled to gain momentum. Can it break through its record high of 21,115? Money Morning Capital Wave Strategist Shah Gilani says yes, and so much more. Shah has been consistently bullish since last November, when he called for the Dow to break 19,000. He continued to call for the stock market to rise, and it has. Now he's making a new, bold prediction. Find out why Shah Gilani thinks the Dow could double - passing 40,000 - and how quickly he thinks it'll get there. Check out his insight, right here.
President Trump said today that the United States will drop out of the Paris Climate Accord. In a speech in the Rose Garden, President Trump said that he will explore ways to get a new agreement done in the future. The decision by Trump went against the advice from many members of the U.S. corporate community, which included Exxon Mobil Corp. (NYSE: XOM).
Crude oil prices slipped on concerns about oversupply in the global markets and news that Trump has pulled the United States out of the Paris Climate Accord. The decline came despite news that the U.S. experienced a 4.4 million barrel drop in inventory levels, according to the Energy Information Administration (EIA). The WTI crude oil price today dipped 0.4%, while Brent crude fell 0.6%.
Four Stocks to Watch Thursday: WMT, DE, CIEN, GM
Wal-Mart Stores Inc. (NYSE: WMT) is trying to bring the fight to Amazon.com Inc. (Nasdaq: AMZN) and its rival's superior logistics system. The world's largest brick-and-mortar retailer is asking its employees to deliver packages to local customers on their way home from work. The experimental, voluntary program is being tested at two New Jersey and Arkansas locations. Companies like Wal-Mart are increasingly concerned about losing market share to Amazon. Given that 90% of Americans live within 10 miles of a Wal-Mart location, it's a bold initiative from the Wal-Mart executive team.
In deal news, shares of Deere & Co. (NYSE: DE) rallied more than 1.8% after the equipment manufacturer announced plans to purchase a private German construction firm. Deere will buy the Wirtgen Group for $5.2 billion, including corporate debt.
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Shares of Ciena Corp. (NYSE: CIEN) surged by more than 15% after the company easily topped Wall Street earnings expectations. The firm reported earnings per share (EPS) of $0.45 on top of $707 million in revenue. Consensus analyst expectations called for EPS of $0.37 on top of $693 million in revenue.
Automotive companies reported mixed vehicle sales ahead of the busy driving season. General Motors Co. (NYSE: GM) shares added 1.4% despite news of a 1.3% decline in monthly sales. Shares of Ford Motor Co. (NYSE: F) added 2.6% after the company reported strong sales of sport utility vehicles and pickup trucks in May.
Look for earnings reports from Lululemon Athletica Inc. (Nasdaq: LULU), Broadcom Ltd. (Nasdaq: AVGO), Workday Inc. (NYSE: WDAY), and Five Below Inc. (Nasdaq: FIVE).
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.