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The Dow Jones news today features President Donald Trump's plans to bring new sanctions against North Korea as new revelations surface that Donald Trump, Jr., met with a Russian lawyer last June. Dow Jones futures are down 13 points this morning, and SNAP has dropped below its IPO price.
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 Tuesday's economic calendar.
The Five Top Stock Market Stories for Tuesday
- Markets will continue to speculate on the timing of the U.S. Federal Reserve's next interest rate. A day before Fed Chair Janet Yellen takes to Capitol Hill to testify on monetary policy and the state of the U.S. economy, look out for two speakers from the central bank on Tuesday. First, Fed Board Governor Lael Brainard will speak on monetary policy at an event hosted by the New York Federal Reserve Bank. Next, Minneapolis Fed Bank President Neel Kashkari will join a Q&A session later today.
- Amazon.com Inc. (Nasdaq: AMZN) is already zooming during its annual Prime Day, and the biggest loser looks to be Best Buy Corp. (NYSE: BBY). During its third annual sales event, the company announced a service to take on Best Buy's Geek Squad. AMZN stock was up slightly in premarket hours. BBY stock was off 0.4% in premarket hours.
- Shares of Snap Inc. (NYSE: SNAP) have fallen below their IPO price of $17.00. Money Morning Chief Investment Strategist Keith Fitz-Gerald warned us all months ago that the Snapchat IPO was the most dangerous public offering that he has ever seen. People who have been selling their stock remain concerned about the company's ability to generate user growth as it faces increased competition from rivals like Facebook Inc. (Nasdaq: FB). This morning, shares even received a downgrade from Morgan Stanley (NYSE: MS), one of the firms that helped bring Snap public. Shares were off another 4.2% in premarket hours.
- One of the boldest U.S. infrastructure plans in the United States since Eisenhower proposed the interstate highway system continues to generate buzz in Washington. Now, companies are trying to get a piece of the action. Today, listen for an announcement from Microsoft Corp. (Nasdaq: MSFT). The tech giant is pitching a $10 billion plan to expand broadband Internet to rural areas of the United States.
- Crude oil prices were falling in early trading after several banks slashed their 2017 and 2018 price forecasts for the global commodity. The WTI crude oil price today fell 0.9%. Brent crude dipped 1.0%. Concerns about a global glut of supply pushed BNP Baripas SA (EPA: BNP) and Barclays Plc. (NYSE ADR: BCS) to cut their expectations. BNP cut its Brent forecast by $9 to $51 a barrel for 2017. The bank expects crude to continue its decline and average $48 in 2018. Financial institutions around the globe remain concerned about OPEC's ability to support prices at a time that U.S. production costs are falling and output is rising.
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- Shares of Arena Pharmaceuticals Inc. (Nasdaq: ARNA) popped more than 40% in premarket hours after the biotech company announced significant progress in one of its key drug studies. The firm said that one of its experimental drugs for a rare lung disease hit its primary goals in mid-stage study. Look for other biotech stocks to react positively to the news on Tuesday.
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- Another day, another victim of the Retail Ice Age. According to reports, Abercrombie & Fitch Co. (NYSE: ANF) has broken off talks with potential suitors about selling. The news raises new concerns about the stability of the apparel sector as companies play a progressive game of musical chairs in order to try to find a financial lifeline. Shares of ANF plunged more than 21% on Monday, and they are flat in premarket hours.
- In earnings news, shares of WD-40 Co. (Nasdaq: WDFC) were off more than 0.8% in premarket hours after the company fell slightly short of analysts' consensus revenue expectations. Wall Street anticipated earnings per share (EPS) of $0.91 on top of $99.1 million in revenue. The company did well on EPS, registering a $1.02. However, revenue clocked in at only $98.18 million.
- Meanwhile, shares of PepsiCo Inc. (NYSE: PEP) are on the move after the soft drink manufacturer released its second-quarter earnings results. Wall Street anticipated EPS of $1.40 on top of $15.62 billion in revenue. The firm reported EPS of $1.50 on $15.71 billion in revenue. Shares had been under pressure since April, when the company warned that rising commodity costs were cutting into margins during the second quarter. In addition, analysts have projected that soda product sales will decline. We'll find out more after the firm's conference call.
- Look for additional earnings reports today from Synchronoss Technologies Inc. (Nasdaq: SNCR), AAR Corp. (NYSE: AIR), and Healthcare Services Group Inc. (Nasdaq: HCSG).
Tuesday's U.S. Economic Calendar (all times EDT)
- NFIB Small Business Optimism Index at 6 a.m.
- Redbook at 8:55 a.m.
- JOLTS at 10 a.m.
- Wholesale Trade at 10 a.m.
- Four-Week Bill Auction at 11:30 a.m.
- Fed Governor Lael Brainard speaks at 12:30 p.m.
- Three-Year Note Auction at 1 p.m.
- Minneapolis Fed Bank President Neel Kashkari speaks at 1:20 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.