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The Dow Jones Industrial Average today fell as investors weighed another round of earnings reports and President Donald Trump's economic policies.
The president's executive order to pull out of the Trans-Pacific Partnership (TPP) trade deal recharged fears that the new administration will continue to push protectionist policies.
Let's look at the numbers from Monday for the Dow, S&P 500, and Nasdaq:
Dow Jones: 19,779.85; -27.40; -0.14%
S&P 500: 2,265.20; -6.11.; -0.27%
Nasdaq: 5,552.94; -2.39; -0.04%
Now, here's a look at today's most important market events and stocks, plus a preview of Tuesday's economic calendar.
DJIA Today: Dow Slides After President Trump Leaves TPP
The executive order to withdraw from the TPP fulfills an early campaign promise by Trump. The president has also pledged to renegotiate the North American Free Trade Agreement (NAFTA) with Mexico and Canada. The president will also meet with British Prime Minister Theresa May to discuss a potential trade pact between the countries.
The announcement came the same day that Trump told the press his administration can cut federal regulations by 75% or "maybe more."
Silver prices climbed nearly 1% as uncertainty over Trump's policies pushed the U.S. dollar lower during the trading session. Money Morning Resource Specialist Peter Krauth predicts a big week for the metal. Krauth explains that several unknowns about Trump's policies will very likely support silver prices in 2017. Here's how much upside silver prices have in 2017.
Crude oil prices were falling Monday as rising U.S. production outweighed news of OPEC's success in pulling roughly 1.5 million barrels per day (BPD) from the global markets.
Money Morning Global Energy Strategist Dr. Kent Moors has been covering the impact of OPEC's deal to cap excessive production. Moors explains that the accord is expected to hold. However, there is a lot of downside now for the world's largest energy cartel. Here's what to expect from the OPEC deal in the future.
Traders are still reacting to Friday's announcement by Baker Hughes Inc. (NYSE: BHI) that the number of production rigs jumped by their highest levels in four months. The push above $50 per barrel in recent months has allowed many shale producers to bring operations back online.
The oil field services sector had an even more difficult day after Halliburton Co. (NYSE: HAL) announced a massive quarterly loss. The firm lost $4 billion when its planned takeover of Baker Hughes fell through at the end of 2016. HAL stock fell 2.6%, while shares of rival Schlumberger Ltd. (NYSE: SLB) dipped 2.5%.
The WTI crude oil price today dipped 0.7%. Meanwhile, Brent crude fell 0.2%.
But the big story is President Trump's meeting today with 12 big-name CEOs from across the nation to restate his administration's corporate tax cut promises. But it wasn't the business-friendly promises that generated the most headlines.
The new president said he is serious about imposing a significant "border tax" on companies that move production away from the United States.
Uncertainty about Trump's regulatory schemes has many investors sitting on the sideline right now and taking a "wait and see" approach.
But Money Morning Technical Trading Specialist D.R. Barton says that you can make a lot of money due to other people's uncertainty. Barton sat down with Money Morning Executive Editor Bill Patalon to discuss one such trade this weekend.
Check out how you can make money this week, right here.
Stock Market News and Top Stocks to Watch Today: Jan. 23, 2017
- In deal news, shares of Aetna Inc. (NYSE: AET) and Humana Inc. (NYSE: HUM) were in focus after a U.S. judged blocked the companies' proposed $34 billion merger. The deal draws into doubt another major consolidation in the healthcare industry. Shares of Anthem Inc. (NYSE: ANTM) and Cigna Corp. (NYSE: CI) were falling today on concerns that their $54 billion pact could fall through in the coming weeks.
- In earnings news, McDonald's Corp. (NYSE: MCD) stock dipped 0.7% after the company reported Q4 earnings. Despite expectations that the firm faced poor winter weather and slow traffic in December, the firm topped earnings, revenue, and same-store sales expectations. For the quarter, McDonald's reported an EPS of $1.45 on top of $6.05 billion in revenue. Analysts anticipated an EPS of $1.41 on top of $5.99 billion in revenue.
- Shares of Qualcomm Inc. (Nasdaq: QCOM) plunged more than 12% after Apple Inc. (Nasdaq: AAPL) sued the company. The lawsuit claims that Qualcomm allegedly overcharged for semiconductor chips and refused to pay back nearly $1 billion in rebates.
- After the bell, look for earnings reports from Yahoo! Inc. (Nasdaq: YHOO), Brown & Brown Inc. (NYSE: BRO), Silicon Motion Technologies Corp. (Nasdaq ADR: SIMO), and Woodward Inc. (Nasdaq: WWD).
Tuesday's U.S. Economic Calendar (all times EST)
- Redbook at 8:55 a.m.
- PMI Manufacturing Index Flash at 9:45 a.m.
- Existing Home Sales at 10 a.m.
- Richmond Fed Manufacturing Index at 10 a.m.
- Four-Week Bill Auction at 11:30 a.m.
- Two-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.