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This morning, the Dow Jones Industrial Average was rising sharply after the Federal Bureau of Investigation announced that it had cleared Democratic nominee Hillary Clinton of any wrongdoing tied to new emails discovered in a different investigation.
With the announcement, the markets are looking to end their longest daily skid since 1980.
On Friday, the Dow Jones fell 42 points as the 2016 election looms. The markets are pricing in a Clinton victory, but they're also anticipating that Congress will remain split. Investors also weighed statements from members of the Federal Reserve after the central bank decided not to raise interest rates last week.
Friday's Stock Market Numbers:
Dow Jones: 17,888.35; -42.32; -0.24%
S&P 500: 2,085.20; -3.46; -0.17%
Nasdaq: 5,046.37; -12.04; -0.24%
Today, Money Morning Technical Trading Specialist D.R. Barton breaks down the latest speculation about the election and what investment opportunities are forming.
Now, here's a look at today's most important market events and stocks, plus a look at Monday's economic calendar.
SPECIAL: Millions could make a fortune on these 30 pot stocks come Nov. 8. Read more…
What's Ahead for the Dow Jones Industrial Average Today
The Dow Jones Industrial Average projected a 231-point gain as Wall Street took a breath after the FBI's announcement to not charge Hillary Clinton over her email issues. With the election looming, the markets anticipate a Clinton victory, but anything could happen. According to a CNBC Fed Survey released this morning, 46% of investors want Hillary Clinton to win, compared to 23% for Donald Trump.
Despite the uptick, there will be losers in today's session. Keep an eye on biotech stocks and iShares NASDAQ Biotechnology Index (ETF) (Nasdaq: IBB), which tracks the performance of the broader sector. During her year-long campaign, Clinton has criticized biotech companies over rising drug prices and reduced research and development spending. Last night's announcement favoring Clinton could spark a sell-off of biotech stocks.
The key biotech stocks to watch are Biogen Inc. (Nasdaq: BIIB), Gilead Sciences Inc. (Nasdaq: GILD), and Amgen Inc. (Nasdaq: AMGN). Although the IBB ETF holds 181 stocks, the three listed equities comprise 24.88% of the fund. It could be a rough day in the sector.
The price of crude oil today is pushing higher this morning after the secretary general of OPEC announced that the global oil cartel was committed to the global output deal signed by members in September. Concerns about the deal have accelerated in recent weeks due to geopolitical tensions between Saudi Arabia and demands for an exemption by Iraq.
The WTI crude oil price today gained roughly 1.4%, while the Brent crude oil price added 1.2%.
The big story today is the 2016 election. But it's not just the main event between Trump and Clinton that has investors talking. There are many important congressional and Senate races that have drawn a lot of attention. There are also important statewide votes on recreational and medicinal marijuana legalization on Nov. 8. Perhaps the biggest will take place in Massachusetts, where recreational marijuana could receive full-scale legalization. Here's what a "Yes" vote would mean for Question 4.
Stocks to Watch Today, Nov. 7, 2016
- In deal news, Alphabet Inc. (Nasdaq: GOOGL) made an under-the-radar investment in Snapchat, according to Business Insider. The investment came through its subsidiary Google Capital. Snapchat has been subject to a round of bids from both Google and Facebook Inc. (Nasdaq: FB). However, it appears that the company is pushing forward to becoming its own independent public company. Here's our latest guide for investors ahead of the inevitable Snapchat IPO.
- In earnings news, shares of Sotheby's (NYSE: BID) were up 0.1% after the firm posted a Q3 earnings per share (EPS) loss of $0.78. That figure is much wider than the loss of $0.57 that was expected by the markets. The company's revenue of $91.5 million beat Wall Street estimates.
- Look for additional earnings reports from Marriott International Inc. (Nasdaq: MAR), Priceline Group Inc. (Nasdaq: PCLN), MGM Resorts International (NYSE: MGM), Cognizant Technology Solutions Corp. (Nasdaq: CTSH), News Corp. (Nasdaq: NWSA), Hertz Global Holdings Inc. (NYSE: HTZ), LendingClub Corp. (NYSE: LC), Align Technology Inc. (Nasdaq: ALGN), Dean Foods Co. (NYSE: DF), Sysco Corp. (NYSE: SYY), and Oasis Petroleum Inc. (NYSE: OAS).
Today's U.S. Economic Calendar (all times EST)
- Gallup US Consumer Spending Measure at 8:30 a.m.
- Labor Market Conditions Index at 10 a.m.
- 4-Week Bill Announcement at 11 a.m.
- 3-Month Bill Auction at 11:30 a.m.
- 6-Month Bill Auction at 11:30 a.m.
- TD Ameritrade IMX at 12:30 p.m.
- Chicago Federal Reserve Bank President Charles Evans speaks at 2:45 p.m.
- Consumer Credit at 3 p.m.
- Treasury STRIPS at 3 p.m.
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