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The Dow Jones today rises after Congress passes a short-term funding bill to keep the government open through mid-February.
Dow futures are flat this morning ahead of the opening bell. Tech investors are cheering strong earnings results from Netflix Inc. (Nasdaq: NFLX). Markets continue to eye positive forecasts from U.S. companies in the wake of the 2017 tax reform law. You won't believe what Wall Street gets away with this earnings season…
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.
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The Top Stock Market Stories for Tuesday
- A temporary spending bill will reopen the government Tuesday, and the markets couldn't be happier to take a breath. Congress has funded the government for three weeks, meaning that the debate over immigration reform is expected to intensify. The positive development complemented news that the International Monetary Fund has hiked global GDP expectations for 2018 and 2019 to 3.9%. This would be the highest growth level since 2011. In addition to higher growth expectations in the United States, the global watchdog also cited stimulus efforts by the Bank of Japan.
- Gold prices continued to rise thanks to a weaker U.S. dollar. With the greenback hovering near three-year lows against a basket of other currencies, gold continues to be an attractive investment for the year ahead. Even though the government shutdown has ended, plenty of other geopolitical tensions around the globe will continue to support gold prices and bring them to new highs in the year ahead. Here's what you need to know.
- Shares of First Solar Inc. (Nasdaq: FSLR) added more than 3.6% thanks to news that U.S. President Donald Trump has hit import tariffs on washing machines and solar panels. This is positive short-term news for U.S. manufacturing and energy development. However, it does create a new strain on global trade and raises concerns about the Trump administration's protectionist policies at a time when more economic rivals are adopting free-trade policies.
- Crude oil prices continued to rise thanks to the IMF's positive economic outlook and ongoing optimism over OPEC's deal to cap excessive output. The global oil cartel has hinted that it will continue to support prices past 2018. The WTI crude oil price today added 0.5%. Brent crude gained 0.5%.
- The price of Bitcoin slid to $10,300 this morning, according to Coinmarketcap.com. The price is now off nearly 50% from December highs, as traders continue to worry about the prospects of cryptocurrencies. Yesterday, South Korea announced stiff taxes on cryptocurrency exchanges, while Vanguard's CEO announced that it will never create a fund tied to Bitcoin. The latter story raises concerns about the optimism shared among institutional investors regarding Bitcoin and other cryptocurrencies.
Four Stocks to Watch Today: JNJ, NFLX, JPM, VZ
- Shares of Netflix Inc. (Nasdaq: NFLX) popped more than 10.5% after the company beat earnings Monday afternoon. The stock hit a new all-time high after reporting earnings per share (EPS) of $0.41 on top of $3.28 billion in revenue. Those numbers matched Wall Street forecasts. The pop came from a strong quarterly forecast and news that it added another 2 million subscribers during the final three months. The company topped a market capitalization of $100 billion for the first time this morning.
- Shares of Johnson & Johnson (NYSE: JNJ) made small gains after the consumer goods giant reported earnings Tuesday morning. The stock hit an all-time high after reporting EPS of $1.74 on top of $20.91 billion in revenue. Wall Street had anticipated EPS of $1.72 on $20.21 billion.
Hitch a Ride to the "Drone Revolution" with This Stock
- JPMorgan Chase & Co. (NYSE: JPM) is the latest U.S. company to announce a significant investment in the United States and pay hike for employees in the wake of the tax reform law. According to reports, the firm will invest $20 billion into its operations, increase pay for its 22,000 employees by an average of 10%, and hire an additional 4,000 new workers. The company also announced plans to expand its Chase branches by another 400 locations.
- Verizon Communications Inc. (NYSE: VZ) added 1% this morning after the firm reported earnings. Despite falling $0.02 short of EPS expectations ($0.86), the company did beat revenue forecasts. The firm also reported that the recent tax reform law will help it generate additional cash flow of more than $3.5 billion.
- Keep an eye out for additional results from Texas Instruments Inc. (NYSE: TXN), Cree Inc. (Nasdaq: CREE), Proctor & Gamble Co. (NYSE: PG), United Continental Holdings Inc. (NYSE: UAL), Capital One Financial Corp. (NYSE: COF), Kimberly Clark Corp. (NYSE: KMB), and State Street Corp. (NYSE: STT).
Tuesday's U.S. Economic Calendar (all times EST)
- Redbook at 8:55 a.m.
- Richmond Fed Manufacturing Index at 10 a.m.
- Four-Week Bill Auction at 11:30 a.m.
- Two-Year Note Auction at 1 p.m.
- Chicago Federal Reserve Bank President Charles Evans speaks at 6:30 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.