Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Drop in Oil Imports Pushes Stocks Higher

Stocks jumped today after U.S. trade deficit data gave us reason to be bullish again. The trade deficit fell to $38.5 billion from $48.6 billion a year ago, which has a few implications. First, the deficit is lower than the estimates the government used to calculate the 0.1% drop in GDP during the fourth quarter. After revisions, we'll probably see slight growth in GDP to end the year. Second, the reading shows a continued decline in net oil imports to a level we haven't seen since 1997. All of this combined has driven the Dow Jones Industrials (DJINDICES: ^DJI  ) up 0.22% near the end of today's trading session, while the S&P 500 (SNPINDEX: ^GSPC  ) 0.44% higher.

Hewlett-Packard (NYSE: HPQ  ) led the Dow today, jumping 2.4% during late trading. The company set new labor guidelines for Chinese suppliers in an effort to crack down on the use of low-wage labor. This stock can swing wildly depending on where breakup rumors stand, and that may also be driving the stock higher as well. The bottom line for investors is that HP is struggling, and it's a 50-50 whether the stock will go up or down from here -- odds no investor should like.

McDonald's (NYSE: MCD  ) reported some negative news for the market this morning. Global same-store sales fell 1.9% in January, driven by weak demand in Europe and Japan. The good news is that U.S. demand was up slightly, and investors were expecting a slight decline, so the stock wasn't crushed today. Shares are up a modest 0.4%, more or less pacing the market right now.

News that regulators will permit 787 Dreamliner test flights wasn't enough to bolster Boeing (NYSE: BA  ) today, and the stock fell 1.3%. The company told two European airlines that 787 deliveries scheduled for this month would be delayed. Boeing is working on a fix for battery issues that caused the aircraft to be grounded on Jan. 16, potentially costing the company hundreds of millions of dollars.

Learn how to protect your portfolio
Are you at ease...or nervous? It's been a great five-year run for investors, with the Dow and S&P at or near all-time highs. Yet fears abound. When will the next downturn hit? Will political gridlock lead to portfolio-killing inflation? To learn how to protect your portfolio, click here for free guidance from the Motley Fool Pro Academy!


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2245724, ~/Articles/ArticleHandler.aspx, 9/29/2016 9:44:13 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 28 minutes ago Sponsored by:
DOW 18,143.45 -195.79 -1.07%
S&P 500 2,151.13 -20.24 -0.93%
NASD 5,269.15 -49.39 -0.93%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/29/2016 4:35 PM
^DJI $18143.45 Down -195.79 -1.07%
^GSPC $2151.13 Down -20.24 -0.93%
S&P 500 INDEX CAPS Rating: No stars
BA $131.03 Down -1.20 -0.91%
Boeing CAPS Rating: ****
HPQ $15.39 Down -0.10 -0.65%
HP CAPS Rating: ***
MCD $114.79 Down -0.39 -0.34%
McDonald's CAPS Rating: ***