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In Dow Jones news today, stock prices dropped as investors wait to see if the Fed will raise interest rates at the June FOMC meeting.
Here are the numbers from Monday for the Dow, S&P 500, and Nasdaq:
|Index||Closing||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 Monday
- Tech stocks slumped as the sell-off in the sector continued. Some investors are concerned after Goldman Sachs Group Inc. (NYSE: GS) suggested last week that leading companies have very high valuations. Shares of Facebook Inc. (Nasdaq: FB), Amazon.com Inc. (Nasdaq: AMZN), Apple Inc. (Nasdaq: AAPL), Microsoft Corp. (Nasdaq: MSFT), and Alphabet Inc. (Nasdaq: GOOGL) all fell on the day. Is it time to panic in the sector? Money Morning Chief Investment Strategist Keith Fitz-Gerald joined Stuart Varney this morning to weigh in. Watch his interview.
- Crude oil prices pushed higher as speculators gambled on a greater balance in supply and demand around the globe. Traders shrugged off concerns about oversupply in the United States and worries that OPEC members will not be able to cap excessive production. WTI crude oil price today added 0.5%, and Brent crude gained 0.2%.
- Two weeks after President Donald Trump removed the United States from the Paris climate agreement, Environmental Protection Agency Chief Scott Pruitt met with G7 environmental ministers in Italy. The meeting ended after the United States refused to sign a joint statement on climate change, while the other six nations in the G7 restated their commitments to slashing carbon dioxide emissions. Pruitt departed the meeting early after the other members expressed their disappointment in President Trump's recent decision on the accord.
- Bitcoin is cratering this afternoon after hitting a new record high. The cryptocurrency rallied above $3,000 for the first time across several exchanges in early morning trading, but it quickly slumped several hundred dollars as the ongoing Bitcoin mania fueled increased volatility.
- All eyes are now on the U.S. Federal Reserve, which will kick off its two-day meeting on monetary policy tomorrow. Markets have locked in a 99% probability that the central bank will raise interest rates. In addition to the central bank's optimism that inflation is on pace to reach the 2% target by the end of the year, Fed Chair Janet Yellen has touted the strength and resilience of the U.S. labor market. The Fed isn't the only central bank that will set policy this week. Look for meetings at the Bank of England, the Bank of Japan, and the Swiss National Bank.
Three Stocks to Watch Monday: GE, AAPL, AMZN
- Shares of General Electric Co. (NYSE: GE) rallied more than 3.5% on news that Chair and CEO Jeffrey Immelt will be stepping down after 16 years at the helm of the organization. Immelt helped guide the company through the 2007-2009 financial crisis, which saw the firm's financial operations nearly bankrupt the conglomerate. He will be replaced by John Flannery, the head of GE's healthcare unit. Flannery's appointment ends a six-year succession plan by the company. GE was the top-performing S&P 500 stock on the day.
- Shares of Apple Inc. (Nasdaq: AAPL) fell more than 2% after the company received its second straight weekly downgrade from a major brokerage. Mizuho Securities slashed its rating on AAPL stock from "Buy" to "Neutral." The firm also cut its price target from $160 per share to $150.
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- Amazon.com Inc. (Nasdaq: AMZN) may have declined by more than 1% today, but that didn't stop one of Wall Street's top analysts from raising his price target on the stock. Piper Jaffray raised its price target on AMZN stock to $1,200 per share on expectations that the company will continue to dominate the e-commerce space as it expands into other industries. Today, the company leaked its "Ice" smartphone and made a big jump into automotive sales in the United Kingdom.
- Look for an earnings report from Science Applications International Corp. (Nasdaq: SAIC) after the bell. Wall Street anticipates earnings per share (EPS) of $1.00 on $1.108 billion in revenue.
Tuesday's U.S. Economic Calendar (all times EDT)
- NFIB Small Business Optimism Index at 6 a.m.
- PPI-Final Demand at 8:30 a.m.
- Redbook at 8:55 a.m.
- Four-Week Bill Auction at 11:30 a.m.
- 30-Year Bond Auction at 1 p.m.
- New York Federal Reserve Bank President William Dudley Speaks at 1:45 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.