Stock Market Rises After Clinton’s Successful Debate Performance – Oct. 10, 2016

Daily Stock Market News Oct. 10, 2016:  After Hillary Clinton’s debate performance over the weekend, as well as the release of a vulgar tape featuring a conversation Trump had eleven years ago, analysts are becoming more confident that Clinton will win the presidential election, and that is helping lift the stock market.  However, more volatility is ahead with the start of earnings season this week, variations in the price of oil, and other economic data.  See today’s closing numbers and details of the economic news.

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U.S. Stock Market Closing Prices Oct. 10, 2016:

Dow Jones Industrial Averages:  18,329.04  +88.55  (+0.49 percent)

S & P 500:  2,163.66  +9.92  (+0.46 percent)

NASDAQ:  5,328.67  +36.27  (+0.69 percent)

Crude Oil:  $51.22 a barrel

Today’s Stock Market Trending Topics:

The market opened higher this morning in response to the perceived win by Hillary Clinton in last night’s debate.  Many investors are nervous about a number of Trump’s proposals, including the elimination of some of the trade agreements that affect our multi-national corporations.  They are concerned about the impact of a trade war.  They are also worried about reports that Trump’s tax proposals would worsen the national debt.  As a result, while they do not like all of the Clinton’s proposals, they feel “safer” with her more traditional approach to governing and feel she would be better for the stock market.  Consequently, the better she is does in debates and polls, the more positive the stock market seems to be … although economic data and oil prices still have the ability to cause the markets to drop.

According to Saudi Energy Minister Khalid al-Falih, Saudi Arabia is very optimistic that the agreement they have brokered to cut oil production will be successful and could raise oil prices to $60 a barrel by the end of the year.

According to Federal Reserve Vice Chairman Stanley Fisher, the decision to hold interest rates at their current level during the September meeting was a “close call.”  He indicated that he expects interest rates to rise gradually in the future.

Brexit continues to weigh heavily on the world economy.  European Central Bank President Mario Draghi said that the impact of Great Britain leaving the European Union would be “very significant.”

During the coming week, we will begin to get reports on corporate third quarter earnings and profits.  This usually increases market volatility as some equities see large swings in their prices.  In the end, the next big impact on the market will be earnings and that will over-shadow the results of the last debate.

Here are the companies which will be reporting later this week:

The Economic Reports Which Will Affect the Stock Market in October:

  • October 7 – Employment Situation report for September, 2016 – 156,000 jobs were added in September. This was not as good as expected, but was the 79th straight month of jobs growth.  The economy has added 1.5 million jobs since 2010. Unemployment rose slightly to 5 percent, from 4.9 percent, as more people entered the job market; wages grew 2.6 percent when compared to a year ago.
  • October 12 – Job Openings and Labor Turnover Survey, September, 2016 –
  • October 13 – U.S. Import and Export Price Indexes, September, 2016 –
  • October 14 – Producer Price Index for September, 2016 –
  • October 18 – Consumer Price Index for September, 2016 –

The Economic Reports Which Affected the Markets in September:

  • September 2 – Employment Situation report for August, 2016 – 151,000 new jobs were created, unemployment remained steady at 4.9 percent, which is considered full employment, and wages grew at a 2.4 percent rate. Almost 1.5 million jobs have been created since the beginning of 2016.
  • September 7 – Job openings and labor turnover survey for July, 2016 – Job openings reached a record high of 5.87 million; layoffs were the lowest in several years.
  • September 8 – September 8 – New claims for unemployment decreased by 4,000 from the previous week, down to 259,000.  They have stayed below 300,000 for 79 straight weeks.
  • September 14 – U.S. Import/Export Price Indexes – Import prices fell 0.2 percent in August; Export prices fell 0.8 percent. This lowered the risk of inflation.
  • September 7 – New claims for unemployment increased a slight 1,000 over last week, rising to 260,000. Claims have stayed below 300,000 for 80 straight weeks.
  • September 15 – Producer Price Index – The Producer Price Index has remained flat for the past twelve months.
  • September 16 – Consumer Price Index – The Consumer Price Index Inflation rate was 0.6 percent for August, the same as it was for July.
  • September 21 – The Federal Reserve announced that they would not raise interest rates at this time. However, we should expect rates to go up before the end of the year, probably in December.
  • September 22 – Existing home sales for August dropped by 0.9 percent. The drop was attributed to a tightening inventory of available homes, which is also causing home prices to rise faster than wages.
  • September 26 – Presidential debate between Hillary Clinton and Donald Trump. After investors perceived that Clinton did well in the debate, stocks began to rise.  However, there are still five weeks until the election.

Resources: / / MSN Money / Market Watch / YahooFinance and other public news sources

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