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The Dow Jones news today is highlighted by the index's ninth straight day of gains for futures this morning as markets prepare another fresh round of earnings reports. However, rising tensions in North Korea have investors increasingly concerned after China announced support for the latest round of United Nations' sanctions.
Here are the numbers from Friday 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
- Investors continue to cheer positive earnings reports and Friday's jobs numbers. The July employment report pushed the Dow to another record high after the U.S. jobless rate fell to 4.3%. Today, the attention will turn to the U.S. Federal Reserve, which recently decided to hold off on an interest rate hike at its July FOMC meeting. Two members of the Fed will speak today on monetary policy and the U.S. economy. Investors are looking for clues into the central bank's commitment to raise interest rates at least one more time in 2017.
- On the global front, markets are reacting negatively to the financial impact of Brexit in the United Kingdom. According to research firm Markit, consumer spending fell in the UK for the third consecutive month. Higher prices and a weaker currency have been the norm for British citizens, as the pound is now off 13% since voters decided to depart the European Union in June 2016.
- Crude oil prices were falling as markets eye a meeting among OPEC and non-OPEC members in Abu Dhabi over the next two days. Participants are expected to discuss the state of the cartel's deal to cap excessive oil production. The WTI crude oil price today fell nearly 1.0%, while Brent crude dropped a little more than 1.0%. Crude oil prices are hovering near nine-week highs thanks to increased optimism over OPEC and Friday's report that showed a decline in U.S. production rigs.
- Markets are keeping a close eye on North Korea after its closest regional ally has agreed to adopt a new round of United Nations sanctions over the Hermit Kingdom's nuclear weapons program. The new resolution is expected to slash roughly $1 billion in annual revenue for North Korea. Kim Jong Un, North Korea's leader, has responded by threatening the United States with a nuclear attack.
What Is Bitcoin?
- Bitcoin prices surged above an all-time high of $3,000 on Saturday as traders shrugged off last week's controversial "hard fork" in the cryptocurrency. Prices hit a staggering $3,360.87, and it was the first time that the market capitalization of the cryptocurrency topped $50 billion in history. The uptick comes a week after the introduction of Bitcoin Cash, which has been sliding since the fork divided Bitcoin on Aug. 1. Here's more on why Bitcoin prices continue to push higher.
Four Stocks to Watch Today: TSN, TSLA, MAR, BABA
- Shares of Tyson Foods Inc. (NYSE: TSN) are up 0.1% as the meat processor prepares to report third-quarter results. The company has been under pressure due to low beef prices and ample supplies. In addition, the company and its rivals are under investigation on allegations that the meat-packing industry is colluding to fix chicken prices.
- Tesla Inc. (Nasdaq: TSLA) is going to raise money (yet again). The company said it plans to issue debt of up to $1.5 billion in order to fund the Model 3. Shares were off 0.2% this morning on the news. Tesla has reportedly received thousands of reservations for the Model 3, and the company faces a huge burden of scaling up to meet expectations. That said, Tesla is burning through cash. The firm is expected to spend more than $2 billion this year, but investors continue to line up to hand Elon Musk's company more money each year.
- Shares of Marriott International Inc. (Nasdaq: MAR) added more than 3% in premarket hours after the international hotel giant announced a new partnership in the future. The company will team with Alibaba Group Holding Ltd. (NYSE: BABA) in a new venture that allows users to use loyalty points on the Chinese e-commerce giant's site. Marriott will report second-quarter earnings after the bell on Monday.
- Look for earnings reports from CBS Corp. (NYSE: CBS), LendingClub Corp. (NYSE: LC), Albemarle Corp. (NYSE: ALB), Tenet Healthcare Corp. (NYSE: THC), Gogo Inc. (Nasdaq: GOGO), Twilio Inc. (NYSE: TWLO), and Chicago Bridge & Iron Company NV (NYSE: CBI).
Monday's U.S. Economic Calendar (all times EDT)
- Gallup U.S. Consumer Spending Measure at 8:30 a.m.
- Labor Market Conditions Index at 10 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.
- Louis Federal Reserve Bank President James Bullard speaks at 11:45 a.m.
- TD Ameritrade IMX at 12:30 p.m.
- Minneapolis Federal Reserve President Neel Kashkari speaks at 1:25 p.m.
- Consumer Credit at 3 p.m.
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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.