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The Dow Jones Industrial Average today is slipping in pre-market hours as investors prepare for a busy earnings season.
Investors are looking toward Wednesday – when President-elect Donald Trump will hold a press conference to discuss his planned economic policies. It will be his first official news conference since winning the U.S. election on Nov. 8.
On Monday, the Dow slipped 76 points because of a downturn in crude prices. Optimism over job creation and economic growth couldn't push the index any closer to the psychological barrier of 20,000.
Let's look at the numbers from Tuesday for the Dow, S&P 500, and Nasdaq:
Dow Jones: 19,887.38; -76.42; -0.38%
S&P 500: 2,268.90; -8.08; -0.35%
Nasdaq: 5,531.82; +10.76; +0.19%
Here's a look at today's most important market events and stocks, plus a look at Tuesday's economic calendar.
What's Ahead for the Dow Jones Industrial Average Today
The Dow projected a 19-point decline as investors gear up for a busy earnings season. A light economic calendar has investors looking toward Friday when Bank of America Corp. (NYSE: BAC), BlackRock Inc. (NYSE: BLK), and JPMorgan Chase & Co. (NYSE: JPM) all report earnings.
With U.S. stock markets continuing to trade near record highs, many investors are wondering if we might see a stock market crash this year. The Dow is within a range of 20,000, while the Nasdaq is coming off another record-setting day. Should you be concerned about a market crash? We answer that question, right here.
In oil price news today, crude has been declining on concerns that OPEC's production deal to cap excessive supply will not happen. Investors are worried producers are increasing rigs and expanding production. Iraq is OPEC's second-largest producer and announced Monday that output from the nation's Basra ports hit a record high in December. On Tuesday, crude prices ticked a bit higher due to a weakening U.S. dollar.
The WTI crude oil price today gained 0.3%, while Brent crude added 0.4%.
But the big story is happening in China.
China – the world's most populous country and home of the second-largest economy – has warned that it will "take revenge" on President-elect Donald Trump if the incoming administration ends the U.S. commitment to the "One China" policy.
As a policy, this means that countries seeking diplomatic relations with the People's Republic of China (mainland China) must break official ties with the Republic of China (Taiwan) and vice versa.
This story has massive geopolitical, social, and economic ramifications, which is why we put together this guide to the Trump administration and the One China policy. Click here.
Stocks to Watch Today, Jan. 10, 2017
- Shares of Valeant Pharmaceuticals International Inc. (NYSE: VRX) surged 11% this morning, but investors shouldn't be too excited by the news. The Canadian drug company, which was one of the worst performers of 2016, ticked higher after it sold its Dendreon cancer business and three skincare brands for roughly $2.12 billion to help ease its $30 billion debt. The total sale was worth approximately $2.2 billion, which isn't very much of its debt burden. Money Morning Global Credit Strategist Michael Lewitt has long warned readers to avoid VRX stock. In fact, he argues that the company is worthless given its stunning debt levels.
- The game is over for Yahoo! Inc. (Nasdaq: YHOO) executive Marissa Mayer after the company has closed its deal to sell its core business to Verizon Communications Inc. (NYSE: VZ). The company will rename itself Altaba, according to Reuters, and Mayer will officially step down from the company's board. Shares of YHOO added 0.5%.
- In earnings news, shares of Barracuda Networks Inc. (Nasdaq: CUDA) rallied more than 8.5% after the company topped Wall Street earnings expectations after the bell Monday. The cybersecurity firm reported an earnings per share (EPS) figure of $0.22, which beat consensus expectations of $0.08. The company reported a 15% jump in active subscriptions over the quarter.
- On Tuesday, look for quarterly earnings reports from SYNNEX Corp. (NYSE: SNX) and Limoneira Co. (Nasdaq: LMNR).
Today's U.S. Economic Calendar (all times EST)
- NFIB Small Business Optimism Index at 6 a.m.
- Redbook at 8:55 a.m.
- JOLTS at 10 a.m.
- Wholesale Trade at 10 a.m.
- Four-Week Bill Auction at 11:30 a.m.
- Three-Year Note Auction at 1 p.m.
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About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.
Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.