In Dow Jones news today, the markets climbed higher thanks to a strong uptick in defense stocks. Defense stocks climbed after Saudi Arabia and U.S. firms announced more than $100 billion in deals to help diversify the former's economy.
Here are the numbers from Monday for the Dow, S&P 500, and Nasdaq:
Many economists and financial institutions are beginning to lose confidence that President Trump and the GOP will be able to implement tax reform by the end of the year. Now, they are turning their attention to another policy initiative. On Tuesday, the administration is expected to pitch a 10-year, $200 billion infrastructure plan as part of Trump's first budget proposal. The deal is expected to include a mixture of private and public investment.
President Trump finished his tour of Saudi Arabia and helped secure a number of investment deals. On Monday, he arrived in Israel, where he aimed to help improve peace between Israeli and Palestinian leaders. The president will also visit Italy and Belgium to complete his first overseas trip. But investors are waiting for tomorrow when President Trump's budget plan is released. This budget is going to feature massive cuts to Medicaid. Here's what you need to know.
The U.S. Federal Reserve was back in focus after several members of the central bank spoke on the state of the U.S. economy, monetary policy, and their expectations for rate hikes in the months ahead. Minneapolis Fed President Neel Kashkari, Philadelphia Fed President Patrick Harker, Federal Reserve Governor Lael Brainard, and Chicago Fed President Charles Evans all made public appearances Monday. Following their speeches, the odds of a rate hike in June now sit at 78.5%.
Crude oil prices pushed higher on expectations that OPEC and several key non-members will extend a deal to cap excessive production. The global oil cartel could deepen its cuts as a way to help support prices at a time that U.S. production continues to rise. At the beginning of the year, OPEC, Russia, and several other nations agreed to slash global production by 1.8 million barrels per day (bpd). WTI crude oil price today added 0.7%, while Brent crude gained 0.2%.
The price of silver today pushed above $17.00 per ounce thanks to ongoing geopolitical concerns around the globe. Money Morning Resource Specialist Peter Krauth explained this afternoon where the silver markets are heading next.
Five Stocks to Watch Monday: BA, F, BAH, BX, GE
It was a big day for Boeing Inc. (NYSE: BA). The company announced it has signed a series of defense and commercial deals with the Saudi Arabian government. The deals, which include military and passenger aircraft, were announced while President Trump visited the Saudi kingdom to discuss business and geopolitics. Shares gained more than 1.5%.
General Electric Co. (NYSE: GE) also announced $15 billion worth of deals with Saudi Arabia. The deals will aim to help Saudi Arabia diversify its economy away from an over-reliance on the oil sector. GE stock added 0.4% on the day.
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Meanwhile, shares of private-equity giant Blackstone Group LP (NYSE: BX) rallied more 6% after Saudi Arabia committed more than $20 billion to the company to help build U.S. infrastructure. The two have planned a $40 billion fund that will help the private-equity firm reach its $100 billion goal of infrastructure investment.
In earnings news, shares of Booz Allen Hamilton Holding Corp. (NYSE: BAH) are ticking higher after the company topped Wall Street earnings expectations in pre-market hours. The company reported earnings per share (EPS) of $0.45 on top of $1.58 billion in revenue. Wall Street consensus expectations called for earnings of $0.43 on $1.47 billion in revenue. Shares of BAH gained more than 7% on the day.
Automotive investors were surprised this morning by a report that Ford Motor Co. (NYSE: F) plans to fire its CEO Mark Fields. It's a big shakeup for the company. In the three years that Fields has run the firm, Ford stock fell roughly 40%, while competitors of next-generation vehicles and technologies saw big gains. In a sign of where the firm's focus may now turn, The New York Times announced that James Hackett, the chairman of the division in charge of developing autonomous vehicles at Ford, will take over Fields' role. Ford stock added more than 2%.
Look for earnings reports from Jamba Inc. (Nasdaq: JMBA), Nordson Corp. (Nasdaq: NDSN), and Navios Maritime Partners LP (NYSE: NMM).
Tuesday's U.S. Economic Calendar (all times EDT)
New Home Sales at 10 a.m.
Richmond Fed Manufacturing Index at 10 a.m.
Four-Week Bill Auction at 11:30 a.m.
52-Week Bill Auction at 11:30 a.m.
Two-Year Note Auction at 1 p.m.
Minneapolis Fed Bank President Neel Kashkari speaks at 3:15 p.m.
Philadelphia Fed Bank President Patrick Harker speaks at 5 p.m.
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.