The Dow Jones Industrial Average today climbed as investors showed optimism over the economy as we head into 2017.
With the U.S. Federal Reserve’s final meeting of the year on tap for Tuesday, investors expect that a rate hike is certain.
Let’s look at the numbers from Monday for the Dow, S&P 500, and Nasdaq:
Dow Jones: 19.796.43; +39.58; +0.20%
S&P 500: 2,256.96; -2.57; -0.11%
Nasdaq: 5,412.54; -31.96; -0.59%
Now, here’s a look at today’s most important market events and stocks, plus a preview of Tuesday’s economic calendar.
DJIA Today: Dow Climbs as OPEC Deal Presses Oil Prices Higher
The Dow Jones climbed as energy traders cheered a huge production deal between OPEC and non-OPEC nations. Energy stocks jumped nearly 2% early this morning. Shares of Exxon Mobil Corp. (NYSE: XOM) and Chevron Corp.(NYSE: CVX) led the way. W&T Offshore Inc. (NYSE: WTI) was one of the biggest daily winners, climbing more than 15%.
According to CME Group’s FedWatch Tool, the odds of a rate hike sit at roughly 95%. Of course, there’s no guarantee that the Fed will raise rates for the first time since December 2015. Expect the Fed to debate the fiscal policies of President-elect Donald Trump, who is pushing for tax cuts, corporate reform, and infrastructure spending. While these policies are seen as ways to bolster economic growth, there are concerns these policies could create inflation.
Gold prices were sitting near a 10-month low with the Federal Reserve in focus. Gold finished the day around $1,164 per ounce. Despite the recent downturn in gold prices since the election, Money Morning Resource Specialist Peter Krauth’s bold gold price prediction shows how high prices could climb heading into 2017 after this week’s FOMC meeting.
The WTI crude oil price today rallied thanks to increased optimism over OPEC’s production deal to cut excessive output. On Saturday, 12 non-OPEC nations, including Russia and Mexico, agreed to reduce their production output in order to help support global crude prices. The total deal includes a reduction of 558,000 barrels per day, according to a statement released by the nations. That follows a deal by OPEC last month that will see crude production decline among member nations by 1.2 million barrels per day.
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