The Dow Jones news today will feature stocks rising as President Trump visits the Middle East for the first time. In more news affecting stocks, European leaders explore a deal to bail out Greece, and a mega-merger pushes global chemical stocks higher.
Here are the numbers from Friday's close for the Dow, S&P 500, and Nasdaq:
Markets are paying close attention to clues from Washington, D.C., on whether tax reform will remain a central goal of the Trump administration in the months ahead. On Friday, Goldman Sachs Group Inc. (NYSE: GS) warned the "probability of a meaningful fiscal boost ahead of the 2018 midterm election" is declining. It is possible Republicans will be unable to get a deal done that provides tangible benefits to Americans before congressional representatives defend their seats. Still, investors are paying attention to other policy goals. President Donald Trump will propose a 10-year, $200-billion infrastructure program tomorrow when he releases his first budget. Trump is pushing for a mixture of private and public funding to bolster U.S. growth.
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Across the Atlantic, Eurozone finance ministers will meet today in Belgium to discuss the state of the world's largest economic bloc and explore a possible debt relief deal for Greece. On Saturday, recently elected French President Emmanuel Macron reiterated his support to promote a more integrated Europe during a discussion with Italian Prime Minister Paolo Gentiloni. Both Greece and Italy are likely to receive additional financial assistance from EU member nations this summer.
Elsewhere in Washington, it will be a busy week for the U.S. Federal Reserve. Members of the central bank will give speeches regarding the Fed's plans to raise interest rates in 2017 and beyond. In addition, the central bank will release minutes from the most recent FOMC meeting. While concerns grow over President Trump's ability to implement tax reform, the Fed is still likely to raise interest rates in June. However, it remains uncertain whether the Fed will hike rates more than one time through the end of the year.
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 and crude oil production costs continue to fall. At the beginning of the year, OPEC, Russia, and several other nations agreed to slash global production by 1.8 million barrels per day. WTI crude oil price today added 1.3%, and Brent crude gained 1.2%.
Four Stocks to Watch Today: BA, HUN, VRX, MS
Shares of Boeing Inc. (NYSE: BA) are on the rise this morning after the company announced it signed a series of defense and commercial deals with the Saudi Arabian government. The deal, which include military and passenger aircraft, was announced while President Trump visited the Saudi Kingdom to discuss business and geopolitics. But Boeing isn't the only firm to announce such deals. General Electric Co. (NYSE: GE) also announced $15 billion worth of deals with Saudi Arabia as well.
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In deal news, shares of Huntsman Corp. (NYSE: HUN) added more than 5.5% after the chemical giant agreed to a $14 billion merger with Swiss company Clariant AG (VTX: CLN). The deal nearly didn't happen and was called off last year after neither company wanted to cede control in the deal. The new company, valued at $20 billion, will be 52% controlled by Clariant shareholders.
Shares of Valeant Pharmaceuticals International Inc. (NYSE: VRX) are up roughly 50% over the last month. But despite this uptick, investors need to remain cautious. This rally isn't going to last. Here's what you need to know right now about Valeant stock.
Shares of Morgan Stanley (NYSE: MS) are in focus as the global investment bank prepares to kick off its annual shareholder meeting in New York. Expect shareholders to ask about the company's stunning run since the Trump election, the impact of a 21st Century Glass-Steagall Act on its operations, and additional questions about its fixed-income trading division.
Look for earnings reports from Agilent Technologies Inc. (NYSE: A), Jamba Inc. (Nasdaq: JMBA), Nordson Corp. (Nasdaq: NDSN), Booz Allen Hamilton Holding Corp. (NYSE: BAH), and Navios Maritime Partners LP (NYSE: NMM).
Monday's U.S. Economic Calendar (all times EDT)
Chicago Fed National Activity Index at 8:30 a.m.
Minneapolis Fed Bank President Neel Kashkari speaks at 10 a.m.
Philadelphia Fed Bank President Patrick Harker 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.
Minneapolis Fed Bank President Neel Kashkari speaks at 6:45 p.m.
Fed Governor Lael Brainard speaks at 7:30 p.m.
Chicago Federal Reserve Bank President Charles Evans speaks at 9:10 p.m.