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In Dow Jones news today, the markets were mostly flat after the long holiday and the release of the June FOMC meeting minutes.
Here are the numbers from Wednesday for the Dow, S&P 500, and Nasdaq:
|Index||Closing||Point Change||Percentage Change|
Now here's a closer look at today's most important market events and stocks, plus Tuesday's economic calendar.
The Five Top Stock Market Stories for Wednesday
- The likelihood of another interest rate hike will come down to inflation, according to minutes from the Federal Reserve's June meeting. The minutes revealed that policymakers are split on the impact of inflation on the economy. In addition, leaders are split on the timing of winding down the balance sheet. Some members want to start the process in August, while others are pushing for the end of the year.
- Crude oil prices plunged after OPEC (Organization of the Petroleum Exporting Countries) announced a big jump in exports. Compounding that news was a statement by Russia that it will not support any changes to the global oil cartel's deal to cap excessive global production. The WTI crude oil price today fell 4.4%, and Brent crude dipped 39%.
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- In economic news, it was a bad May for U.S. goods manufacturers. According to a report released this morning, new orders for U.S. goods fell more than expected in May. However, the silver lining was that capital equipment orders topped expectations.
- It was a terrible day for automotive service companies. Shares of O'Reilly Automotive Inc. (Nasdaq: ORLY) fell more than 18% after the company reported a huge miss in same-store sales. This report sent shockwaves across the industry and raised concerns about revenue expectations for other companies in the space. Shares of both Autozone Inc. (NYSE: AZO) and Advance Auto Parts Inc. (NYSE: AAP) fell more than 9% on the day.
- Finally, Facebook Inc. (Nasdaq: FB) generated a lot of buzz today, but it had nothing to do with the social media giant's booming user figures. Today, CEO Mark Zuckerberg defended his calls for the government to provide a universal basic income for all of its citizens. Zuckerberg cited the Alaska Permanent Fund as a prime example of how a government can effectively give free money to its citizens. Zuckerberg has attracted a lot of attention over his support of UBI, particularly as technology companies continue to displace workers around the globe.
Three Stocks to Watch Wednesday: TSLA, XOM, VNTV
- It was a bad day for investors of Tesla Inc. (Nasdaq: TSLA). Shares fell more than 7% after an analyst at Goldman Sachs Group Inc. (NYSE: GS) offered a dire prediction about the company's stock. Goldman said that Tesla stock could be cut in half due to lackluster sales of the Model S. Goldman downgraded TSLA stock and slashed its price target from $190 to $180 per share.
- Shares of Exxon Mobil Corp. (NYSE: XOM) and Chervon Corp. (NYSE: CVX) were off more than 1.5% thanks to the sharp downturn in crude prices. With oil prices under pressure, XOM is hovering close to its 52-week low. Today's biggest loser in the energy space was Teekay Offshore Partners LP (NYSE: TOO), which fell nearly 14% on the day.
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- In deal news, shares of Vantiv Inc. (NYSE: VNTV) are down 2.3% after the U.S. credit card processing firm announced a deal to buy Worldpay Group Plc. The deal for the largest payment-processing company in the United Kingdom is valued at roughly $9.94 billion.
- Look for earnings reports from Jamba Inc. (Nasdaq: JMBA), PriceSmart Inc. (Nasdaq: PSMT), Herman Miller Inc. (Nasdaq: MLHR), Yum China Holdings Inc. (NYSE: YUMC), and Eros International Plc. (NYSE: EROS).
Thursday's U.S. Economic Calendar (all times EDT)
- MBA Mortgage Applications at 7 a.m.
- Challenger Job Cut Report at 7:30 a.m.
- ADP Employment Report at 8:15 a.m.
- International Trade at 8:30 a.m.
- Jobless Claims at 8:30 a.m.
- Gallup Good Jobs Rate at 8:30 a.m.
- Bloomberg Consumer Comfort Index at 9:45 a.m.
- PMI Services Index at 9:45 a.m.
- ISM Non-Manufacturing Index at 10 a.m.
- EIA Petroleum Status Report at 11 a.m.
- Three-Month Bill Announcement at 11 a.m.
- Six-Month Bill Announcement at 11 a.m.
- Three-Year Note Announcement at 11 a.m.
- 10-Year Note Announcement at 11 a.m.
- 30-Year Bond Announcement at 11 a.m.
- Fed Balance Sheet at 4:30 p.m.
- Money Supply at 4:30 p.m.
- Fed Vice Chair Stanley Fischer speaks at 7:30 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.