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The Dow Jones news today features a 45-point drop in Dow Jones futures after Apple unveiled its new "HomePod" device. In other stock market news, rising tensions in the Middle East and the upcoming testimony from former FBI Director James Comey are on traders' minds.
Here are the numbers from Monday for the Dow, S&P 500, and Nasdaq:
|Index||Previous Close||Point Change||Percentage Change|
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 Tuesday
- The Trump administration is likely to unveil its proposed changes to the Dodd-Frank Act as soon as today. President Trump has promised significant revisions to the post-crisis era financial reform law. Financial institutions have been lobbying for regulatory changes at community banks and some relief from stress testing. But we don't expect an updated Glass-Steagall Act…
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- Investors are keeping an eye on President Trump and the Federal Reserve. The president is expected to nominate two people – Randal Quarles and Marvin Goodfriend – to fill two of the three vacancies at the central bank. The president is likely set to nominate the two men before the June FOMC meeting, where the central bank is widely expected to raise interest rates.
- Crude oil prices are under pressure as markets attempt to weigh the sudden diplomatic isolation of Qatar from its neighbors in the Middle East. Five countries cut ties with Qatar Monday and accused the small Persian Gulf nation of funding ISIS and other terrorist groups. The sudden geopolitical shake-up has raised concerns about the stability of a deal among OPEC producers to curb excessive production. The WTI crude oil price today fell 0.4%. Brent crude dipped 0.3%.
- Wall Street just received a big win from the U.S. Supreme Court. The high court has handcuffed the Securities and Exchange Commission in its power to recoup ill-gotten profits from professional misconduct. If you've been reading Money Morning Capital Wave Strategist Shah Gilani, you shouldn't be surprised by this development. Recently, Shah pulled back the curtain to reveal many ways that Wall Street greed has hollowed out the middle class for ill-gotten gains. More importantly, he also taught our readers how to play this rigged game for profit.
What Can We Expect from North Korea?
- On the global front, China has increased its political pressure on North Korea by slashing its coal deliveries to the "Hermit Kingdom." The world's second-largest economy is attempting to get Kim Jong Un to halt his nuclear ambitions and stop testing weapons. Unfortunately, those efforts are being undermined by a regional neighbor: Russia. According to Russian state-owned media firm Sputnik, Russia has increased its trade with North Korea by 73% over the last year and dramatically increased its coal deliveries. North Korea is now surviving on Russia's dime, and investors need to dig deeper here.
Four Stocks to Watch Today: AAPL, THO, GM, AMBA
- Apple Inc. (Nasdaq: AAPL) continues to generate headlines at its Worldwide Developers Conference (WWDC) 2017. On Monday, the company made six big announcements and hosted a keynote speech by CEO Tim Cook. Yesterday, the company unveiled new operating systems watchOS 4, macOS Sierra, and iOS 11; it launched several new Macs; it unveiled a new speaker called the HomePod which includes digital assistant Siri; Apple partnered with Amazon.com Inc. (Nasdaq: AMZN) to bring Prime Video to the AppleTV platform; and, it announced that its streaming music subscriptions hit a new all-time record. Shares were flat in pre-market hours.
- Shares of Thor Industries Inc. (NYSE: THO) rallied nearly 11% after the company crushed earnings expectations after the bell Monday. The company reported earnings per share (EPS) of $2.11 on top of $2.015 billion in revenue. Wall Street had anticipated EPS of $1.87 on top of $1.963 billion in revenue.
- General Motors Co. (NYSE: GM) shareholders are set to vote on changes at the company's board level. Investors will decide if they wish to side with activist hedge fund manager David Einhorn and give him up to three board seats. Overall, these investors have largely rejected Einhorn's calls for a dual-class structure to the company's stock.
- Today's earnings reports will be headlined by international semiconductor giant Ambarella Inc. (Nasdaq: AMBA). Wall Street expects fiscal first-quarter 2018 EPS of $0.36 on top of $63.36 million.
- Look for additional earnings reports from Dave & Buster's Entertainment Inc. (Nasdaq: PLAY), United Natural Foods Inc. (Nasdaq: UNFI), G-III Apparel Group Ltd. (Nasdaq: GIII), Francesca's Holdings Corp. (Nasdaq: FRAN), Conns Inc. (Nasdaq: CONN), Canadian Solar Inc. (Nasdaq: CSIQ), and Lands' End Inc. (NYSE: LE).
Tuesday's U.S. Economic Calendar (all times EDT)
- Gallup US ECI at 8:30 a.m.
- Redbook at 8:55 a.m.
- JOLTS at 10 a.m.
- Four-Week Bill Auction at 11:30 a.m.
- Treasury STRIPS at 3 p.m.
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.