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The Dow Jones today is looking to rebound with a 127-point gain in pre-market hours. The markets topped 26,000 on Tuesday only to give up a 283-point gain and finish the day lower.
Dow futures are up 104 points this morning, with the U.S. Federal Reserve in focus today, as three members of the central bank prepare to give speeches on the U.S. economy and monetary policy.
Speaking of Goldman… here's why gold prices are surging in 2018, with more gains coming…
Here are the numbers from Tuesday for the Dow, S&P 500, and Nasdaq:
|Index||Previous Close||Point Change||Percentage Change|
Now here's a closer look at today's most important market events and stocks, plus Wednesday's economic calendar.
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The Five Top Stock Market Stories for Wednesday
- Janet Yellen's role as chair of the Fed will likely end today. That's because the U.S. Senate Banking Committee will hold a vote on the nomination of Jerome Powell to succeed Yellen as the next Fed chair. The vote comes on a day that three members of the Fed will give speeches on monetary policy and the U.S. economy.
- Net neutrality is making a comeback. According to reports, Senate Democrats are closing in on a majority to overturn the Federal Communication Commission's recent decision to reverse the Obama-era Internet rules. Republican Sen. Susan Collins (R-ME) has said that she will back the repeal alongside 49 other Democrats. Now, Democrats need one more vote to overturn the deal. Obtaining 51 votes will defeat the proposal given that that Vice President Mike Pence can break a tie in the Senate.
- Gold prices retreated from a four-month high as the U.S. dollar pared losses over the last 24 hours. However, there's a major story emerging that can make you extremely rich. We have reached "peak gold." It's a watershed moment for the yellow metal, and production is hitting the wall. Here's what you need to know.
- Crude oil prices have been on an incredible run over the last month. Oil prices have jumped about 13% in recent weeks thanks to growing demand expectations and optimism about OPEC's deal to cap excessive production. However, U.S. producers are pushing crude output to their highest levels since the 1970s, and some analysts are predicting that a correction is possible in the near future. The WTI crude oil price today fell 0.2%. Brent crude dipped 0.4%.
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- It was "Black Tuesday" for Bitcoin and the broader cryptocurrency market. Bitcoin briefly dipped below $10,000 per coin, while alternative coins pushed the total market capitalization of the crypto industry below $470.0 billion. But the real story was the total and utter collapse of BitConnect, which plunged more than 92.4% in 24 hours after the crypto exchange shuttered its doors. The BCC token has been compared to a Ponzi Scheme from many critics, including Ethereum founder Vitalik Buterin. Bitconnect Coin's website once called its currency a sure thing: "The moment you acquire BitConnect Coin it becomes an interest-bearing asset with 120% return per year. It is that simple." That asset is now nearly worthless to investors around the globe.
Three Stocks to Watch Today: BAC, GS, GE
- Shares of Bank of America Corp. (NYSE: BAC) are on the move after the U.S. bank topped earnings before the bell. The firm reported earnings per share (EPS) of $0.47, which beat forecasts by three cents. Despite the EPS beat, the firm fell short of revenue expectations. Wall Street expected that the bank would benefit from higher interest rates and recent news that the company boosted its buyback program.
- Shares of Goldman Sachs Group (NYSE: GS) dipped 0.6% despite news that the iconic investment bank topped Wall Street earnings estimates. The firm reported EPS of $5.68, while Wall Street forecasted $4.91. This morning, markets are weighing the impact of a $5 billion charge on its quarterly earnings report. Though the firm has seen a boost in its investment banking revenue, its trading business and bond business has weakened. In fact, its bond trade division reported a 50% slump in trading revenue.
- General Electric Co. (NYSE: GE) could be on the "chopping" block – meaning that the firm is exploring a plan to break up into separate businesses. The news comes after the firm announced an $11 billion insurance and tax hit to its bottom line. The company could split the firm into a series of separately traded firms or divest portions of its business.
- Look for additional earnings reports from Kinder Morgan (NYSE: KMI), Fastenal Co. (Nasdaq: FAST), Charles Schwab Corp. (Nasdaq: SCHW), U.S. Bancorp (NYSE: USB), HB Fuller Co. (NYSE: FUL), and Alcoa Corp. (NYSE: AA).
Wednesday's U.S. Economic Calendar (all times EST)
- MBA Mortgage Applications at 7 a.m.
- Redbook at 8:55 a.m.
- Industrial Production at 9:15 a.m.
- Housing Market Index at 10 a.m.
- Beige Book at 2 p.m.
- Chicago Federal Reserve Bank President Charles Evans speaks at 3 p.m.
- Dallas Federal Reserve Bank President Robert Kaplan speaks at 3:15 p.m.
- Treasury International Capital at 4 p.m.
- Cleveland Fed Bank President Loretta Mester speaks at 4:30 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.