The Dow Jones Today Will Hit Another All-Time High If Congress Agrees on Taxes

A compromise between the U.S. House and Senate versions of the new tax reform bill could lead to a record-breaking rally for the Dow Jones today.

Dow futures are up 70 points this morning as Congress works to resolve differences between the House and Senate's tax reform bills. But while Congress works to cut taxes, investors need to keep an eye on the Federal Reserve. And it just told you three blatant lies…

Here are the numbers from Monday for the Dow, S&P 500, and Nasdaq:

Now here's a closer look at today's most important market events and stocks, plus Tuesday's economic calendar.

This Book Could Make You a Millionaire: The secrets in this book have produced 42 chances to double, triple, and even quadruple your money this year alone. Claim your FREE copy…

The Five Top Stock Market Stories for Tuesday

• The Senate is preparing to vote on the appointment of Jerome Powell as head of the Federal Reserve. Powell, who is currently a Governor on the Fed board, would replace Janet Yellen on Feb. 3. He is viewed by many as a safe, non-controversial pick to lead the U.S. central bank. Most analysts anticipate that Powell will continue to keep the central bank on a path toward steady interest rate normalization and proceed with a plan to wind down its massive balance sheet in the years ahead. And with the Fed continuing to tighten monetary policy, investors are increasingly turning to gold as a safe-haven asset.

• The world is treading carefully as the North Korean nuclear crisis continues to accelerate. The problem that we've discovered is that Russia has been using the North Korean nuclear crisis to its benefit. Evidence of Russia's collusion with North Korea emerged in the immediate wake of Pyongyang's intercontinental ballistic missile (ICBM) launch last Tuesday (Nov. 28). Here's what Russia is doing and how you can protect your portfolio.

• General Motors Co. (NYSE: GM) is all in on China. The U.S. automotive giant announced it is prepared to make a major splash in the world's largest automobile market. GM will launch 50 new vehicles in China by 2025. The firm also announced its commitment to leading the electric vehicle revolution, noting that 15 of the future models will fill the EV category. GM stock was flat in pre-market hours.

• Crude oil prices dipped again Tuesday morning as investors prepare for an update on U.S. inventory levels this afternoon. The American Petroleum Institute will release its private data on domestic stocks. Markets anticipate a decline due to recent maintenance in the Keystone XL pipeline. The WTI crude oil price today fell 0.4%. Brent crude dipped 0.1%.

• The price of Bitcoin popped again over night and is now on the verge of topping $12,000 in the coming days. Strong buying and increased optimism has fueled a remarkable rally despite Friday's recent double-digit downturn. While Bitcoin is generating a lot of buzz, the real story has been the incredible surge of cryptocurrency IOTA. The price of IOTA is up another 28% over the last 24 hours, which pushed it into the top five cryptocurrencies by market capitalization. Here's more on what's moving IOTA and Bitcoin Tuesday.

Three Stocks to Watch Today: AZO, BAC, MCD

• Shares of Autozone Inc. (NYSE: AZO) added 5.5% after the retailer reported earnings before the bell. The auto-parts retailer topped quarterly earnings and revenue expectations. Analysts were optimistic after the firm reported a 2.3% jump in same-store sales, a figure that beat analyst forecasts.

• Shares of McDonald's Corp. (NYSE: MCD) jumped more than 1.3% in pre-market hours after the fast food giant received another upgrade from Wall Street. Jefferies hiked its price target from $50 per share to a stunning $200. The recommendation would be a little more than 17.5% higher than where MCD stock closed on Monday afternoon.

• Bank of America Corp. (NYSE: BAC) stock is up more than 1% in pre-market hours. The uptick came on news that the bank is going to repurchase an extra $5 billion in stock. BAC stock added 0.4%. Shares of Citigroup (NYSE: C), Goldman Sachs Group (NYSE: GS), and JPMorgan Chase & Co. (NYSE: JPM) all showed gains on the news as well.

• Tuesday will feature a busy day of earnings reports. Keep an eye out for additional results from Dave & Busters Entertainment Inc. (Nasdaq: DAVE), Restoration Hardware Holdings Inc. (NYSE: RH), Toll Brothers Inc. (NYSE: TOL), G-III Apparel Group Ltd. (Nasdaq: GIII), AeroVironment Inc. (Nasdaq: AVAV), HD Supply Holdings Inc. (NYSE: HDS), Liquidity Services Inc. (Nasdaq: LQDT), and Lands' End Inc. (NYSE: LE).

Tuesday's U.S. Economic Calendar (all times EST)

• International Trade at 8:30 a.m.
• Redbook at 8:55 a.m.
• PMI Services Index at 9:45 a.m.
• ISM Non-Manufacturing Index at 10 a.m.
• Four-Week Bill Auction at 11:30 a.m.
• 52-Week Bill Auction at 11:30 a.m.

Get On the Path to Greater Wealth: When it comes to making money in the market, "getting in" early – before a stock begins to make its decisive move – is the single biggest factor to your success as an investor. Quickly buying Apple after the June 2013 sell-off, for instance, could have doubled your money. Moving on Valeant the same day we recommended our big "negative bet" against it would've booked you a remarkably fast 700% return. That's why we've introduced Money Morning Profit Alerts. This new, free service lets you choose what investing areas you want to follow – and makes sure you get alerted to news from that sector as soon as we publish it. It means no more waiting. No more searching. No more missing out. It's easy to get started – just go here.

Follow Money Morning on Twitter @moneymorning, Facebook, and LinkedIn.

Join the conversation. Click here to jump to comments…