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Dow Jones Today Climbs as IMF Issues World Economic Outlook

At the closing bell, the Dow Jones Industrial Average rose 10 points to finish at 16,256. The Nasdaq increased 33 points to finish at 4,112, while the S&P 500 added 6 points to end the day at 1,851. Among the top news moving the Dow Jones today was the International Monetary Fund (IMF) announcing that emerging markets could rattle the global economy in 2014. The IMF released its bi-annual "World Economic Outlook" and said slower growth in Brazil and Russia, two premier emerging markets, could batter manufacturing nations like Japan and Germany thanks to reduced trade flows. The post Dow Jones Today Climbs as IMF Issues World Economic Outlook appeared first on Money Morning - Only the News You Can Profit From .
DJ Industrial Ave Theoretical (m) N/A: DJIA Apr 08 04:06 PM loading chart... Price: 16,256.46 | Ch: 10.59 (0.1%)

At the closing bell, the Dow Jones Industrial Average rose 10 points to finish at 16,256. The Nasdaq increased 33 points to finish at 4,112, while the S&P 500 added 6 points to end the day at 1,851.

Among the top news moving the Dow Jones today was the International Monetary Fund (IMF) announcing that emerging markets could rattle the global economy in 2014. The IMF released its bi-annual "World Economic Outlook" and said slower growth in Brazil and Russia, two premier emerging markets, could batter manufacturing nations like Japan and Germany thanks to reduced trade flows.

The report also warned that the economy is also at risk as demand for advanced-economy debt products is declining in emerging markets like China. Still, the IMF does believe that the global economy will grow at 3.6% in 2014, fueled by advanced nations and low interest rates.

Here's a recap of five other major events moving markets today:

  1. The Biggest Cable Deal in History: On Tuesday, Comcast Corp. (Nasdaq: CMCSA) defended its merger with Time Warner Cable Inc. (NYSE: TWC) as a benefit to customers and as a strategic defense against new competition from Google Inc. (Nasdaq: GOOG) and Apple Inc. (Nasdaq: AAPL) in the television and video market.
  2. Massive Drug Settlement: A Louisiana jury ordered Japanese drug maker Takeda Pharmaceutical Co. Ltd. (OTCMKTS: TKPYY) and U.S. powerhouse Eli Lilly & Co. (NYSE: LLY) to pay $9 billion in punitive damages for failing to disclose cancer risks in its diabetes treatment, Actos. Takeda will pay $6 billion, while Eli Lilly, the drug's marketer, will pay $3 billion. The plaintiffs will also receive approximately $1.5 million in compensatory damages from both companies. Despite the ruling, shares of Eli Lilly remained flat in midday trading. Shares of Takeda slipped by more than 4%.
  3. Amazon's Online Domination: Last week, in a blow to Netflix, Amazon.com (Nasdaq: AMZN) announced it had become the exclusive streaming distributor of 21st Century Fox's (Nasdaq: FOXA) hit show 24. This week, the company announced that its online video streams have almost tripled in the last year. The company is now streaming more video than Apple Inc. (Nasdaq: AAPL) and Hulu, according to analytics company Qwilt. Analysts have attributed Amazon's growth in online video to its content acquisition strategy (like 24) and its original programming studio. Looking forward, its Amazon Fire product is expected to drive even greater streaming traffic through its Prime product. The data comes a day after both Yahoo! Inc. (Nasdaq: YHOO) and Microsoft Corp. (Nasdaq: MSFT) both announced plans to venture into original programming and to compete against the largest players in the streaming category. Netflix Inc. (Nasdaq: NFLX) still leads the category by a wide margin.
  4. Blame It on the Weather: Airline companies are beginning to set lower expectations for first-quarter results ahead of reporting schedules. On Tuesday, American Airlines Group Inc. (Nasdaq: AAL) announced that the 34,000 cancelations it experienced due to bad weather in the first three months are likely to hurt first-quarter results. The cancelations cost American Airlines approximately $115 million in quarterly revenue and slashed operating profits by nearly $60 million. The company also predicts a drop in profit margins due to the weather. American Airlines will report Q1 earnings on April 24.
  5. More Financial Crisis Legal Battles: U.S. regulators plan to proceed with one single trial against Standard & Poors Ratings Agency over its role in the financial crisis. Though the McGraw Hill Financial Inc. (NYSE: MHFI) division argues that the $5 billion civil fraud suit would be too large, the U.S. government has rejected this plea. Federal prosecutors argue that several smaller trials would undercut the government's goal of proving the size and scope of the credit agency's role in the 2008 financial crisis. Standard & Poors is accused of facilitating substantial losses for federally insured banks and credit unions. According to the federal case, the company allegedly inflated ratings to obtain more business from banks and insurers, failed to downgrade bad mortgage debt in a timely manner, and defrauded a number of its investors.
Tuesday's Top Three Profit Opportunities
  1. Our Man in Japan Shares a Soros-Beating Move: Bill Patalon can't think of any Westerner with a better handle on Japan-related investment opportunities than our Chief Investment Strategist Keith Fitz-Gerald. And Keith just shared a big, big opportunity for investors looking to exploit a recent decision by the Japanese government. You could make a nice little profit when the country's currency declines...
  2. Natural Gas Stocks 2014: Money Morning Energy Expert Dr. Kent Moors says, "LNG is one of the best investments of the decade." Strangely, some investors think it's too late to get in on the massive profits fueled by America's booming resource. But it's not too late. In fact, natural gas exporters will be among the top energy stocks of the decade, and here is your opportunity to join the income plays of a lifetime.
  3. Knockout the Food Inflation Bully: Maybe you've noticed that the price of food has been soaring lately - and at a double-digit clip. Meanwhile, household income is barely rising. But if you know where to invest your money, you can actually make food inflation pay off. This investment idea will get you started on your way to big profits this summer...
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The post Dow Jones Today Climbs as IMF Issues World Economic Outlook appeared first on Money Morning - Only the News You Can Profit From.

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