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The Dow Jones news today features a record $2.7 billion fine from EU regulators against Internet giant Alphabet Inc. (Nasdaq: GOOGL). Dow Jones futures are down 15 points this morning and European Central Bank Chief Mario Draghi expressed little urgency to tighten monetary policy across the world's largest economic bloc.
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
- Alphabet Inc. (Nasdaq: GOOGL) shares are off more than 1% in premarket hours after European regulators hit the company with a record antitrust fine. The European Commission hit the global Internet giant with a $2.7 billion fine for promoting its own shopping services over its smaller competitors. This is the largest fine ever issued by the EC; however, Google will likely appeal to the European Court of Justice. Shares of other FAANG stocks — Facebook Inc. (Nasdaq: FB), Amazon.com Inc. (Nasdaq: AMZN), Apple Inc. (Nasdaq: AAPL), and Netflix Inc. (Nasdaq: NFLX) – all fell in premarket hours.
- Senate Republicans are reeling after the Congressional Budget Office offered bad news on the state of the bill proposed to repeal and replace parts of the Affordable Care Act. According to the CBO, the bill would lead to roughly 22 million Americans being uninsured by 2026. Despite the news, the Koch Brothers have pushed Republicans to do more to fully repeal former President Obama's signature healthcare law.
- U.S. Energy Department Secretary Rick Perry will speak Tuesday about President Trump's proposed policies at the Energy Information Administration's annual conference. The speech is part of the administration's "Energy Week," a series of events to promote U.S. energy production and to fulfill several campaign pledges to focus on energy issues.
- Crude oil prices are ticking higher for the fourth-straight trading session thanks a weaker U.S. dollar. That's a positive reversal from last Wednesday when crude prices hit a 10-month low and trickled into bearish territory. The threat of a glut continues to lurk despite efforts by OPEC to curb excessive global output. The WTI crude oil price today added 1.02%. Brent crude gained 0.9%.
- The Federal Reserve is in focus as Federal Reserve Chair Janet Yellen prepares to speak on the global economy later today. Other speakers today include Philadelphia Fed President Patrick Harker and San Francisco Fed President John Williams. Markets can anticipate that Williams will likely reiterate his statements yesterday that supported an increase of interest rates at a steady pace.
Four Stocks to Watch Today: DRI, GM, BABA, AMZN
- In earnings news, shares of Darden Restaurants Inc. (NYSE: DRI) pushed up another 2.1% after the company hiked its dividend by 15.2% and topped Wall Street quarterly earnings expectations. The owner of Olive Garden and Longhorn Steakhouse reported earnings per share (EPS) of $1.18, a figure that beat estimates by three cents. The company also reported a 3.3% jump in same-location sales at its premier restaurants.
- Shares of General Motors Co. (NYSE: GM) are off 0.8% this morning after the company lowered its sales outlook for the automotive industry in 2017. The company said that it expects the number of vehicles sold in the United States this year to fall in the "low-17 million" range. The figure would be a downturn from the record sales registered in 2016. The statement comes shortly after analysts at J.D. Power and LMC Automotive both predicted a 2% industry sales decline in June compared to the same period last year.
Will Tech Stocks Keep Soaring
- Readers of Money Morning have long known our support for e-commerce giant Alibaba Group Holdings Ltd. (NYSE: BABA). Money Morning Chief Investment Strategist Keith Fitz-Gerald has compared the largest e-commerce company in China to Amazon.com Inc. (Nasdaq: AMZN) roughly five years ago. But now, investors should be asking questions about the proposed IPO of another Chinese company. Best Inc. – which is backed by Alibaba – is betting big on a supply chain boom in China, and it's coming to the United States to list on the U.S. markets.
- Speaking of IPOs, this is one that you must check out today. While markets have been going crazy over the impact of Amazon.com's purchase of Whole Foods Market Inc. (NYSE: WFM), many investors have been ignoring a major story on the horizon. Readers need to know about the Blue Apron stock and IPO guide that we've prepared. If you don't know, Blue Apron Holdings Inc. is a meal-kit delivery service that is poised to be a major disruptor in the $3.2 billion food industry. Here's what you need to know to get ready for one of the most important IPOs of the year.
- Look for additional earnings reports from KB Home (NYSE: KBH), FactSet Research Systems Inc. (NYSE: FDS), AeroVironment Inc. (Nasdaq: AVAV), CalAmp Corp. (Nasdaq: CAMP), Sky Solar Holdings Ltd. (Nasdaq: SKYS), and IHS Markit Ltd. (Nasdaq: INFO).
Tuesday's U.S. Economic Calendar (all times EDT)
- Federal Reserve Vice Chair Stanley Fischer speaks at 3:15 a.m.
- San Francisco Fed Bank President John C. Williams speaks at 4:05 a.m.
- Redbook at 8:55 a.m.
- S&P Corelogic Case-Shiller HPI at 9 a.m.
- Consumer Confidence at 10 a.m.
- Richmond Fed Manufacturing Index at 10 a.m.
- State Street Investor Confidence Index at 10 a.m.
- Philadelphia Fed Bank President Patrick Harker Speaks at 11:15 a.m.
- Four-Week Bill Auction at 11:30 a.m.
- Five-Year Note Auction at 1 p.m.
- Minneapolis Fed Reserve Bank President Neel Kashkari speaks at 5:30 p.m.