Markets

DJIA Index Soars 118 Points on Surge in Oil Prices, Rate Expectations

MoneyMorning.com Report -

For April 6, 2015, here's how the stock market did today, the top stock market news, and stocks to watch based on today's market moves...

How Did the Stock Market Do Today?

Dow: 17,880.85, +117.61,+0.66%

S&P 500: 2,080.63, +13.67,+0.66%

Nasdaq: 4,917.32, +30.38,+0.62%

The DJIA Index gained more than 144 points on Tuesday, fueled by a surge in oil prices and soft data that hints the Federal Reserve will likely avoid an interest rate hike in June. Friday's weak March employment report pushed PNC Financial Services to delay its expected target rate date back to until September.

The S&P 500 Volatility Index (VIX), the market's fear gauge, dipped 0.4% on the day.

In commodities, gold prices jumped 1.3%, while silver prices gained 1.7%. The weak unemployment report dented expectations of a rate hike, which added a jolt to precious metals.

Top Stock Market News Today

  • This morning, New York Fed President William Dudley announced that the central bank requires more time to determine whether Friday's jobs report is an indicator of a broader economic downturn or a one-time blip. Dudley said that he anticipates that the path toward a rate hike will be "relatively shallow."

  • Oil prices surged this afternoon on news that Iran will be unable to significantly boost its exports until 2016 should a deal between the United States and Iran be reached over the latter nation's nuclear program. Brent oil, priced in London, surged more than 5.2% to $57.81 per barrel. Meanwhile, WTI crude, priced in New York City, added more than 5.7% to hit $51.92 per barrel. Of course, this news isn't surprising to anyone who follows our global energy specialist Dr. Kent Moors. One month ago, Kent told energy investors to beware the "Iran card" when discussing the possibility of lower oil prices. Now, you can read where Kent sees oil prices heading from here, in his recent column, right there.

Stocks to Watch: XOM, CVX, RDS, COP, TSLA, MTB, TSLA

  • Stocks to Watch No. 1, Multinational energy producers were in focus today, as share prices rose due to soaring oil prices. Shares of Exxon Mobil Corp. ( XOM ), Chevron Corp. ( CVX ), and Royal Dutch Shell (NYSE: RDS.A) all jumped more than 1.2%. ConocoPhillips ( COP ) gained more than 3.6% on the day.
  • Stocks to Watch No. 2,TSLA: Shares of Tesla Motors Company (Nasdaq: TSLA) jumped more than 7.5% on news that the company reported a 55% spike in first-quarter deliveries. The firm reported a quarterly record of 10,030 deliveries of its Model S sedan.
  • Stocks to Watch No.3, HLF: Shares of Herbalife Ltd. ( HLF ) rebounded this afternoon to finish up 1.2%. The stock had cratered more than 7% this morning on news that federal agencies were investigating the company's business practices. According to reports, Herbalife assisted its sellers with legal assistance, and Feds are investigating possible market manipulation and irregular trading.
  • Stocks to Watch No. 4, QURE: Shares of UniQure NV (Nasdaq: QURE) surged more than 43% after Bristol-Myers Squibb Co. ( BMY ) announced a collaborative deal with the gene therapy company. Bristol-Myers will also acquire a 4.9% equity stake in the firm.
  • Stocks to Watch Nos. 5 and 6,HCBK, MTB : Shares of Hudson City Bancorp Inc. (Nasdaq: HCBK) slumped 8% and shares of M&T Bank Corp. (MTB) fell 2.5% on news that the companies' proposed merger has been delayed by the Federal Reserve. The central bank said it required more time to examine the deal, which has an agreement expiration of April 30.
  • Stocks to Watch No. 7, AAPL: Shares of Apple Inc. (Nasdaq: AAPL) gained more than 1.7% on a busy day of Apple stock news. Today, a new report from LG Electronics (LGEAF) said that the company will release the iMac 8K later this year. In addition, a Stifel analyst reaffirmed his $150 price target for Apple stock. The analyst stated that iPhone sales in China continue to rise and the company is increasing its market share in the smartphone sector.

How to Make Money in the Stock Market Today

Every day we give investors a "tip of the day" to find their best profits. Today's tip comes from our Global Resource Specialist, Peter Krauth.

Emerging markets provide investors with some of the world's best growth opportunities. But they can be a tough sell for the risk averse.

The MSCI Emerging Markets Index can skyrocket one year, only to be devastated the next.

"At least limited exposure to emerging markets makes sense because they can offer explosive returns," Krauth said. "That can apply to everyone, so long as the allocation is kept smaller for the more risk averse."

Many investors buy shares in the iShares MSCI Emerging Markets Index ETF (NYSE Arca: EEM), which tracks the MSCI Emerging Markets Index. But this year, the Index is up 12.16%, while the ETF is only up 4.96%.

A better strategy is to go with individual investments that have the best growth potential instead of an ETF with broad exposure.

Here are two picks:

No. 1. Market Vectors Russia ETF (NYSE Arca:RSX): Many investors won't touch Russia right now. But its moments like these that actually make Russia a great place to put your money for stunning returns. RSX invests in countries incorporated in Russia that make 50% of their sales domestically. It has close to $2 billion in assets with a lot of exposure to the Russian energy markets.

No. 2. Market Vectors India Small Cap Index ETF (NYSE Arca:SCIF): India has a lot of potential. And while SCIF is subject to intense volatility, it can come with big rewards. In 2014, it was up 64%. And the pro-business initiatives pursued by Prime Minister Narendra Modi will help this small-cap ETF grow even more. SCIF holds $266.6 million in assets, with a concentration on tech firms and the financial sector, including microfinance.

To get a third emerging markets pick, go here:How to Profit from the Best MSCI Emerging Markets Index Countries

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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