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Dow Jones futures continue to be flat this morning, even in the wake of the passage of the Republican tax cut plan.
The Dow Jones today remains below the vaunted 25,000 level, which is proving to be difficult to reach despite record growth this year and the tax cut. Stocks might stay flat as traders wait for the new year, and the new tax regime, to make significant moves. But everyday investors can take the time to craft their New Year's resolutions, like setting yourself up for lifetime wealth...
Here are the numbers from Tuesday 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 Wednesday's economic calendar.
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The Five Top Stock Market Stories for Wednesday
- As the final trading week of 2018 moves to the halfway mark, we're hearing a lot of chatter about the economic and financial impact of Republicans' signature tax reform bill. Last Friday, President Donald Trump signed the largest reform of tax policy in roughly three decades. Following the news, at least a dozen companies announced plans to reinvest in U.S. operations or large one-time bonuses for their employees. However, despite the positive headlines, there are new concerns about the impact the bill will have on deficits. The plan will add roughly $1.5 trillion to the nation's ballooning deficits.
- Shares of Apple Inc. (Nasdaq: AAPL) are trying to recover after yesterday's 2.5% decline. The company's stock and the stocks of key suppliers fell after a report indicated weaker-than-expected demand for its new iPhone X during the first quarter. According to a report from Reuters, the tech company will slash its sales forecast for the iPhone X from 50 million units down to 30 million units. However, Apple's public relations team said it will not speak on market rumors. Meanwhile, Apple is also facing pressure from at least eight new class-action lawsuits after it admitted to slowing down previous iterations of the iPhone.
- The price of Bitcoin is recovering after its worst week since 2013. The cryptocurrency pushed back above $16,500 thanks to stronger buying in South Korea and Japan. The price has popped from a massive sell-off last week and survived ongoing outages and delays from Coinbase, one of the largest U.S.-based crypto marketplaces.
- A weaker U.S. dollar pushed gold prices higher, and we're now on the verge of seeing the currency top $1,300. Tax reform has many investors concerned about the acceleration in the national debt. The tax package is expected to add an additional $1.5 trillion over the next decade. Meanwhile, palladium has hit a 17-year high thanks to strong demand from the automotive industry. The metal is used to make mandatory catalytic converters for exhaust systems.
- Crude oil prices are retreating this morning after a huge surge on Tuesday. Oil prices added 2.6% on Tuesday, and WTI crude nearly topped $60 per barrel for the first time in 30 months. Overall, analysts anticipate a greater balance between international supply and demand heading into 2018. Today, look for updates on U.S. inventory levels as the nation's production continues to rise to levels not seen since the early 1970s. The WTI crude oil price today fell 0.7%. Brent crude dipped 1.2%.
Four Stocks to Watch Today: RMAX, TSLA, FDX, UPS
- Shares of RE/MAX Holdings Inc. (Nasdaq: RMAX) are in focus as the real estate company prepares to report quarterly earnings before the bell. Wall Street anticipates that the company will report earnings per share of $0.52 on top of $51.22 million in revenue.
- Tesla Inc. (Nasdaq: TSLA) and its founder Elon Musk are making headlines after the announcement of yet another new vehicle. The company plans to add a pickup truck to its line of automobiles in the future. Musk made the promise on Twitter and said that the new concept would be based on its Model Y Sedan.
- It's going to be a busy week for FedEx Corp. (NYSE: FDX) and United Parcel Service Inc. (NYSE: UPS). According to retail consulting firm Optoro, consumers are going to return roughly $90 billion in unwanted gifts during the holiday season.
- Look for additional earnings reports from Manitex International Inc. (Nasdaq: MNTX).
Wednesday's U.S. Economic Calendar (all times EST)
- MBA Mortgage Applications at 7 a.m.
- Redbook at 8:55 a.m.
- S&P Corelogic Case-Shiller HPI at 9 a.m.
- Consumer Confidence at 10 a.m.
- Pending Home Sales Index at 10 a.m.
- Two-Year FRN Note Auction at 11:30 a.m.
- Five-Year Note Auction at 1 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.