Start the conversation
The Dow Jones Industrial Average today is trending downward in pre-market trading as Trump's inauguration comes into focus.
Global stocks were mainly lower in the morning hours as geopolitical concerns about China, Donald Trump, the Brexit, and more leak from the World Economic Forum in Davos, Switzerland. On Monday, U.S. markets were closed in observance of Martin Luther King, Jr., Day.
On Friday, the Dow Jones slipped five points despite a strong performance from banking stocks as the markets officially kicked off earnings season. JPMorgan Chase & Co. (NYSE: JPM), Bank of America Corp. (NYSE: BAC), and PNC Financial Services Inc. (NYSE: PNC) all beat earnings-per-share (EPS) estimates.
Let's look at the numbers from Friday for the Dow, S&P 500, and Nasdaq:
Dow Jones: 19,885.73; -5.27; -0.03%
S&P 500: 2,274.64; +4.20; +0.18%
Nasdaq: 5,574.12; +26.63; +0.48%
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 Jones Industrial Average projected a 45-point decline as investors prepare for a busy day of earnings reports. The Dow turned down as much as triple digits earlier as investors eye the upcoming inauguration of President-elect Trump and new details about Britain's "hard Brexit" plans.
The top stocks to watch this week include banking titan Goldman Sachs Group Inc. (NYSE: GS), media giant Netflix Inc. (Nasdaq: NFLX), and conglomerate General Electric Co. (NYSE: GE). Though Tuesday includes a quiet day of economic data, look out for the Empire State Report, which will provide the first glimpse of 2017 into the performance of the U.S. manufacturing sector. In addition, watch for speeches from members of the U.S. Federal Reserve.
Trending: The Best Stocks to Buy for January 2017
The retail sector is back in focus thanks to the number of mass layoffs that are expected in 2017. Over 15 major U.S. companies laid off workers in 2016. And that trend is expected to continue thanks to declining sales, poor foot traffic in brick-and-mortar stores, and the increasing popularity of e-commerce. Here is a list of six companies that have planned mass layoffs in 2017.
With the World Economic Forum in focus in Davos, Switzerland, gold prices have added 1.6% during pre-market hours. Attendees at the event have expressed concerns about Britain's exit strategy set for May 2017. On Tuesday, British Prime Minister Theresa May said her country will not seek a Brexit plan leaving it "half in, half out" of the European Union.
Crude oil prices were choppy in pre-market hours as investor optimism remains mixed over the progress of the OPEC crude deal to cap excessive production. Saudi Arabia has promised to strictly adhere to the the agreement; however, U.S. production continues to climb and threatens the global market share of the world's largest oil cartel. But the real trend moving oil prices higher has been a weaker dollar.
Money Morning Global Energy Strategist Dr. Kent Moors breaks down the impact of rising U.S. oil production and explains what matters most: How the uptick is affecting you and your wallet. Check out his latest insight on the global crude markets, right here.
The WTI crude oil price today added 1.4%. Brent crude gained 1.1%.
But the big story is the upcoming inauguration of President-elect Donald Trump.
The inauguration of President-elect Donald Trump is Friday, Jan. 20. The event has investors and markets anticipating what he will say when he speaks to the nation as U.S. president for the first time.
But there's one other president who will move the markets this week.
Investors are largely ignoring statements from this world leader after the annual World Economic Forum in Davos, Switzerland, kicked off Monday. While Britain's Teresa May is garnering many headlines this morning, this president has become the star of the event, where he plans to defend globalization and his nation's rising economy.
Here's what you need to know before U.S. markets open.
Stocks to Watch Today, Jan. 17, 2017
- The markets are reacting to news the General Motors Co. (NYSE: GM) plans to invest another $1 billion into its U.S. operations. The spending is expected to create thousands of jobs. The announcement comes not long after President-elect Donald Trump criticized the company for manufacturing vehicles outside of the United States and threatened to impose tariffs on vehicles crossing the Mexican border.
- In deal news, get ready for the newest, largest tobacco company on the planet. British American Tobacco (NYSE: BAT) has announced a deal to buy the rest of the 58% stake that it doesn't own of U.S. rival Reynolds American Inc. (NYSE: RAI) for a stunning $49.4 billion. That figure is more than $2 billion higher than BAT's most recent and best bid. The deal could face scrutiny from regulators on both sides of the Atlantic, particularly if the deal offshores Reynolds American.
- In earnings news, Morgan Stanley (NYSE: MS) ticked up 0.6% after the investment firm topped Wall Street earnings expectations. Shares of MS stock are hovering near an eight-year high thanks to a post-election rally that continues to stock investor confidence.
- Meanwhile, watch for a critical earnings report from UnitedHealth Group Inc. (NYSE: UNH). The health insurance giant will be the first in its industry to report quarterly earnings since President-elect Donald Trump won the election and promised to repeal the Affordable Care Act. A Republican Congress has already taken steps to repeal and replace Obamacare, but it is unclear how the company will adapt or how it may affect its bottom line in the coming year.
- Keep an eye out for additional earnings reports from CSX Corp. (NYSE: CSX), United Continental Holdings Inc. (NYSE: UAL), ADTRAN Inc. (Nasdaq: ADTN), Interactive Brokers Group Inc. (Nasdaq: IBKR), and New Oriental Education & Tech Group (NYSE ADR: EDU).
- Finally, to find the best tech stocks to buy in 2017, we picked from the four tech trends ready to take off this year. Sales growth in these industries is expected to rise as much as three times, 12 times – in one case 30 times – by 2020. And the top stock picks in each sector have share-price targets as much as 40% to 100% higher than where they trade today. Check out the latest insight from Money Morning Director of Tech & Venture Capital Research Michael A. Robinson. Read it, right here.
Today's U.S. Economic Calendar (all times EST)
- Empire State Manufacturing Survey at 8:30 a.m.
- New York Federal Reserve Bank President William Dudley speaks at 8:45 a.m.
- Federal Reserve Gov. Lael Brainard speaks at 10 a.m.
- Four-Week Bill Announcement at 11 a.m.
- Three-Month Bill Auction at 11:30 a.m.
- Six-Month Bill Auction at 11:30 a.m.
- San Francisco Federal Reserve Bank President John C. Williams speaks at 6 p.m.
Must Read – This Great Depression-era "Secret" Helped Transform Two Teachers into Millionaires: Donna and Dave R. were both teachers in Boston. But today they're retired millionaires who are also earning $10,000 a month in income. Their secret? Much of their wealth is due to a Great Depression-era "program" most have no idea exists. Full Story
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.