The Dow Jones news today features the start of U.S. President Donald Trump's "Energy Week" where the president will focus on energy issues. Rising crude oil prices will help strengthen his message, while Dow Jones futures are up 74 points this morning.
Here are the numbers from Monday for the Dow, S&P 500, and Nasdaq:
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Now here's a closer look at today's most important market events and stocks, plus Monday's economic calendar.
The Five Top Stock Market Stories for Monday
- In Washington, Senate Republicans are losing support from within their own ranks on a bill to replace and repeal the Affordable Care Act. Senate Majority Leader Mitch McConnell (R-KY) had hoped that the Senate would vote on a new bill by July 4. However, several media outlets report that Republicans do not have enough votes to pass the bill, while Democrats have warned of apocalyptic events for poor and middle-class Americans should the deal pass. The biotech sector could face pressure Monday.
- Gold prices hit a one-week high as growing uncertainty weighed on the U.S. dollar. It's been a little more than a week since the Federal Reserve raised interest rates, but the greenback has been falling thanks to a myriad of geopolitical concerns. Money Morning Resource Specialist Peter Krauth offered his insight into where prices are heading next. To see his 2017 gold price forecast, click here.
- Crude oil prices are ticking higher thanks to a weaker U.S. dollar. However, another uptick in U.S. drilling activity has traders concerned that a global glut in supply could weaken prices again in the near future. The threat of a glut continues to lurk despite efforts by OPEC to curb excessive global output. The WTI crude oil price today added 1.1%. Brent crude gained 1.2%.
- This Thursday, President Trump is expected to praise the rise of U.S. exports in crude oil and natural gas and highlight the nation's increased dominance in global energy output. "Energy Week" will highlight output in various energy industries in the United States and call for further deregulation in the oil and gas sector.
- On the international front, several Middle Eastern states have made a list of 13 demands that Qatar must fulfill or the Gulf nation will face economic and diplomatic isolation. The demands come just weeks after Qatar was accused of financing terrorism around the globe, a charge its leadership denies. The demands include the closing of media company Al-Jazeera, reducing diplomatic ties with Iran, shutting a Turkish military base, and the payment of reparations. Iran and several other allies have referred to these demands as the "siege of Qatar." The fallout could weaken OPEC's production deal.
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- At least one major retailer won't enter a bidding war for Whole Foods Market Inc. (NYSE: WFM). Over the weekend, Wal-Mart Stores Inc. (NYSE: WMT) announced it will not consider a bid for the company that received a $13.7 billion bid from Amazon.com Inc. (Nasdaq: AMZN).
- Expect a lot of chatter today about the future of Nestle SA (OTCMKTS ADR: NSRGY), the world's largest packaged-foods manufacturer. That's because activist hedge fund Third Point, founded by Daniel Loeb, announced it has taken a $3.4 billion stake in the Swiss company. It is the largest stake ever taken by Third Point. The hedge fund is pressing the company to bolster its margins, increase its stock buyback plan, and spin off non-core assets like its stake in French cosmetics firm L'Oreal SA. The hedge fund recently made similar demands from Yahoo Inc. (Nasdaq: YHOO).
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- Shares of Facebook Inc. (Nasdaq: FB) are generating buzz in premarket hours after the social media giant announced plans to pay up to $3 million per episode for original television shows. The company is focusing on original content for viewers age 13 to 30. The news comes a week after rival Snap Inc. (NYSE: SNAP) announced a similar plan to develop content with Time Warner Inc. (NYSE: TWX).
- In earnings news, look for a quarterly report today from Schnitzer Steel Industries Inc. (Nasdaq: SCHN). The steel recycling giant saw shares pop nearly 7% on Friday as investors prepared for today's report. Wall Street anticipates earnings per share (EPS) of $0.41 on top of $372.75 million in revenue.
Monday's U.S. Economic Calendar (all times EDT)
- San Francisco Federal Reserve Bank President John Williams speaks at 1:10 a.m.
- Durable Goods Orders at 8:30 a.m.
- Chicago Fed National Activity Index at 8:30 a.m.
- Dallas Fed Manufacturing Survey at 10:30 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.
- Two-Year Note Auction at 1 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.