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In Dow Jones news today, the markets were flat after a wild day of economic data and speculation on government plans to break up major U.S. banks.
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Now here's a closer look at today's most important market events and stocks, plus Tuesday's economic calendar.
The Five Top Stock Market Stories for Monday, May 1, 2017
- Gains in the technology sector helped traders offset concerns about a report indicating President Donald Trump is considering a plan to break up the "Too Big to Fail" banks. Bloomberg reported today that the Trump administration could consider efforts to revive the Glass-Steagall law that separated commercial lending from investment banking. During his campaign, Trump supported a "21st Century Glass-Steagall" Act.
- Markets are also eyeing the U.S. Federal Reserve on the eve of the May meeting of the Federal Open Market Committee (FOMC). The Fed will kick off a two-day meeting on monetary policy Tuesday. The central bank is not expected to hike interest rates in May, but markets are more focused on the discussion about potential rate hikes later this year.
- In commodity news, the price of silver today fell again. Money Morning Resource Strategist Peter Krauth has been reporting in recent weeks that indicators suggested downside for the industrial metal. However, with the Fed in focus and increased geopolitical strife flaring around the globe, Krauth has offered his latest silver price forecast for 2017. Read his latest insight, right here.
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- Crude oil prices fell again on signs of rising global output and weakening demand. The ongoing increase in U.S. production rigs and near-record inventory levels have offset any optimism fueled by signs that OPEC may extend production cuts to cap excessive production. The WTI crude oil price today dipped 1.18%. Brent crude slid 1.11%.
- But the big news today is about a new bill. President Trump has said that a new healthcare bill will provide coverage for pre-existing conditions, but it fails to address a staggering problem with the existing Affordable Care Act. Just one small change is going to leave many Americans penniless should the new Republican healthcare bill fail to address the financial time bomb that we've discovered. Read more, right here.
Four Stocks to Watch Monday: AAPL, JPM, AMD, TRCO
- Tech stocks – led by Apple Inc. (Nasdaq: AAPL) – pushed higher today. AAPL stock added more than 2% as Wall Street builds up for the company's earnings report on Tuesday. Analysts are also very optimistic that tax reform – including a provision that would allow companies to repatriate foreign cash holdings – would be a boon to AAPL stock. Shares of Microsoft Corp. (Nasdaq: MSFT) and Facebook Inc. (Nasdaq: FB) – two companies that are in the "Fab Five" tech stocks – both hit new all-time intraday highs.
- Banking stocks started off on shaky ground on news that the Trump administration may consider a proposal to break up the "Too Big to Fail" banks. However, by the afternoon, many traders realized that banking giants Morgan Stanley (NYSE: MS), Wells Fargo & Co. (NYSE: WFC), JPMorgan Chase & Co. (NYSE: JPM), Bank of America Corp. (NYSE: BAC) and Citigroup Inc. (NYSE: C) could be worth more in the long run.
- Shares of semiconductor giant Advanced Micro Devices Inc. (Nasdaq: AMD) are up more than 2% as the company prepares to report quarterly earnings. Wall Street expects that the company will report its fourth consecutive quarter of increased revenue. However, analysts expect that the company will report earnings per share (EPS) of -$0.05, a small profit loss. The firm has successfully gained market share from rivals Intel Corp. (Nasdaq: INTC) and Nvidia Corp. (Nasdaq: NVDA) in the desktop and mobile sectors over the last year.
- Shares of Tribune Media Co. (NYSE: TRCO) rallied more than 6% on news that the company has received a joint takeover bid from two major players in the media and private-equity space. Twenty-First Century Fox Inc. (Nasdaq: FOXA) and Blackstone Group LP (NYSE: BX) are working on a bid for the Chicago-based media giant. The new bid will compete against another offer from Sinclair Broadcast Group Inc. (Nasdaq: SBGI), which has reportedly offered a deal in the high $30s per share.
- Other top stocks to watch today included Cliffs Natural Resources Inc. (NYSE: CLF) and Twitter Inc. (NYSE: TWTR). Click here to read more about why these stocks were making headlines.
- Look for earnings reports after the bell from Texas Roadhouse Inc. (Nasdaq: TXRH), Tenet Healthcare Corp. (NYSE: THC), Flowserve Corp. (NYSE: FLS), and Nautilus Inc. (NYSE: NLS).
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Tuesday's U.S. Economic Calendar (all times EDT)
- Gallup US ECI at 8:30 a.m.
- Redbook at 8:55 a.m.
- Four-Week Bill Auction at 11:30 a.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.