What’s Moving the Dow Jones Industrial Average Today: WTI Oil Tops $50 per Barrel
Futures for the Dow Jones Industrial Average today (Thursday, May 26) projected a 40-point gain as oil prices rallied ahead of a slew of economic data that could boost investment sentiment. Investors will be eyeing a monthly update on durable goods orders, while weekly jobless claims will offer some insight into the health of the labor industry.
Financial stocks have been rallying in recent sessions as investors anticipate the U.S. Federal Reserve will increase interest rates in either June or July. Shares of Bank of America Corp. (NYSE: BAC), JPMorgan Chase & Co. (NYSE: JPM), and Citigroup Inc. (NYSE: C) will be in focus today after a strong Wednesday trading session.
Conversely, gold prices have been sliding on the interest rate chatter. This morning, pay attention to a speech by Federal Reserve Board Governor Jerome Powell, a permanent voter on the FOMC. According to CME Group’s FedWatch, markets see a 34% probability of a June rate hike and a 57% chance of a boost to short-term rates in July.
On the deal front, AT&T Inc. (NYSE: T) has reportedly made a bid for the internet business of Yahoo! Inc. (Nasdaq: YHOO), Bloomberg reported yesterday. The firm joins rival Verizon Communications Inc. (NYSE: VZ) as a potential suitor for parts of the global tech giant. YHOO stock was up nearly 2.5% in pre-market hours.
Global crude oil prices ticked above $50 per barrel for the first time since November as supply concerns abate and investors continue to enjoy the price rally in the global commodity sector. WTI gained 1.1%, while Brent crude pushed up 1.2%. However, that $50 mark could face pressure very soon. The psychological barrier could drive U.S. producers in the shale industry to return to operations after months of being shutdown. Meanwhile, a possible deal among OPEC producers to provide a floor to prices remains in jeopardy due to Iran’s unwillingness to participate.
