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The Dow Jones today is set to hit record highs on headlines that Senate Republicans have secured the votes of two holdout members on the tax reform bill.
Dow futures are up 159 points this morning as investors cheer on the success of President Donald Trump's tax reform bill. If you're looking for a safe investment showing triple-digit gains by 2020, read this…
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.
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The Five Top Stock Market Stories for Monday
- The final Republican tax bill would bolster U.S. budget deficits by roughly $1.4 trillion over the next decade, according to an early analysis by the Joint Committee on Taxation. Despite the problematic math, the U.S. Senate has been able to secure support from Sen. Bob Corker (R-TN) and Sen. Marco Rubio (R-FL) after both voiced concerns about the bill last week. The big gamble for Republicans now centers on whether companies will generate new jobs and growth with a big cut in the corporate rate.
- Keep an eye on airline stocks today. On Sunday, a massive power outage at the world's busiest airport, Hartsfield-Jackson Atlanta International Airport, halted more than 1,000 flights nationwide. The airport is the largest hub for Delta Air Lines Inc. (NYSE: DAL) and processes roughly 275,000 passengers each day. Initial reports indicate that a fire was the primary reason for the electricity outage.
- Gold prices ticked lower due to strength in the U.S. dollar. The greenback is receiving some additional support thanks to ongoing expectations that Congress will pass tax reform in the days ahead. Heading into the new year, gold prices are especially tempting right now. With a significant number of geopolitical problems turning up around the globe, gold could very well be the top investment of 2018. Here is our latest gold forecast for stocks and the precious metal before the new year starts.
- Crude oil prices ticked slightly higher in pre-market hours as traders eye forecasts for the commodity in 2018. Markets are a bit concerned about rising U.S. production and its potential impact to limit the price upside linked to OPEC's extension to its production deal. The world's largest oil cartel agreed recently to extend its deal to cap excessive production through the end of 2018. The WTI crude oil price today added 0.2%. Brent crude gained 0.3%.
- The price of Bitcoin closed in on the $20,000 level Sunday as the buying frenzy continued. The total market capitalization of the entire cryptocurrency industry is now on the verge of hitting $600 billion, with Bitcoin now comprising $330 billion of the total. The surge came shortly before Standpoint Research founder Ronnie Moas forecasted that the price of Bitcoin will pop to as high as $400,000 in the future thanks to the supply and demand imbalance for the cryptocurrency. For more on what else is pushing Bitcoin and other cryptocurrencies higher, be sure to check out our daily crypto recap, right here.
Three Stocks to Watch Today: NFLX, FB, CSX
- Keep an eye on shares of Netflix Inc. (Nasdaq: NFLX) Monday. Over the weekend, multiple Hollywood media outlets announced that Oscar-winning actor George Clooney is developing an eight-part series on the Watergate scandal with the media company. The announcement comes about two months after Netflix unveiled a plan to spend $8 billion on new, original content. The company's end goal is to reach a point where 50% of its digital library is comprised of original programming.
- Facebook Inc. (Nasdaq: FB) has done something that very few companies do when it comes to the reputation of their product and services. It came out and said last week that using too much Facebook can be bad for you. The firm said Thursday that, in certain cases, social networking can be bad for your health. The conclusion was drawn from studies at the University of Michigan, UC San Diego, and Yale that tested mental health and mood conditions after excessive use of social networks.
- CSX Corp. (Nasdaq: CSX) stock is trying to recover after news that its CEO passed away on Saturday. Hunter Harrison died just days after the company announced he was taking time for medical leave. Harrison was hired in early 2017 to help lead an aggressive turnaround strategy for the railway company. His four-year contract was highly controversial – roughly $300 million in total compensation.
- Look for an earnings report from HEICO Corp. (NYSE: HEI).
Monday's U.S. Economic Calendar (all times EST)
- Housing Market 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.
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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.