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The Dow Jones today briefly retreats from all-time high levels ahead of a major week of earnings results from the world's hottest tech companies.
Dow futures are down 48 points this morning as traders prepare for a busy week of earnings from top tech companies, including Alphabet Inc. (Nasdaq: GOOGL), Apple Inc. (Nasdaq: AAPL), Facebook Inc. (Nasdaq: FB) and Alibaba Group Holding Ltd. (NYSE: BABA).
Here are the numbers from Friday 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 Monday's economic calendar.
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The Four Top Stock Market Stories for Monday
- In trade news, negotiators are working on the sixth round of talks to update the North American Free Trade Agreement (NAFTA). The meetings will end today, and there appears to be very little progress in the negotiations. U.S. President Donald Trump has threatened to pull out of the deal if talks fail to offer positive results for the United States. However, the collapse of NAFTA would be a serious blow to the United States, particularly in the agricultural sector.
- Expect a lot of chatter about the financial stability of tech giant Apple Inc. (Nasdaq: AAPL). A report from Japan's Nikkei newspaper says that Apple will slash its production forecast for first-quarter iPhone X by 50% The firm is reportedly citing weak holiday sales for its revision. The firm revised its output from 40 million units down to 20 million. AAPL stock is off roughly 0.6% in pre-market hours.
- Gold prices have jumped in six of the first seven weeks of the year. While some people might be taking gains, right now may be one of the best opportunities to buy gold. Money Morning Resource Specialist Peter Krauth conservatively expects that gold will rise to $1,400 during the first half of the year before surging to $1,500 by the end of 2018. Click here to find out why investors bought $1 million in gold during the Jan. 16 crypto crash.
- Crude oil prices retreated from near-three-year highs on news that U.S. output is poised for its strongest levels since 2012. Markets project that American production is poised to rally by 10 million barrels in the year ahead, while Canadian production is also on the verge of rising. Oil prices have rallied over the last year thanks to increased cooperation among OPEC members, who are likely to extend their deal to cap excessive production beyond 2018. The WTI crude oil price today fell 0.7%. Brent crude dropped 1.0%.
Three Stocks to Watch Today: LMT, DPS, BABA
- Shares of Lockheed Martin Corp. (NYSE: LMT) are in focus during its earnings report. The stock added $2.40 after topping earnings per share (EPS) and revenue expectations. Analysts anticipate the defense giant will report EPS of $4.06 on top of $14.75 billion. The defense contractor reported $4.30 per share and easily beat the Street's revenue forecast.
- In deal news, shares of Dr. Pepper Snapple Group Inc. (NYSE: DPS) popped a staggering 38% after the company announced plans to merger with Keurig Green Mountain. The new company will be called Keurig Dr Pepper. According to Reuters, shareholders in Dr. Pepper Snapple will receive $103.75 per share in cash. They will also own 13 percent of the newly formed company.
- Shares of Alibaba Group Holding Ltd. (NYSE: BABA) will open today for the first time above $200.00 per share. The Chinese e-commerce giant has been on an absolute tear over the last month, as investors grow more optimistic about China's economic growth. The company recently hit the $500 billion valuation level and received an upgrade from Oppenheimer, with a price target of $220 per share.
- Look for earnings reports from Seagate Technology Plc. (NYSE: STX), Hawaiian Holdings Inc. (NYSE: HA), J&J Snack Foods Corp. (Nasdaq: JJSF), IDEX Corp. (Nasdaq: IDTI), Rambus Inc. (Nasdaq: RMBS), Crane Co. (NYSE: CR), and Sohu.com Inc. (Nasdaq: SOHU).
Monday's U.S. Economic Calendar (all times EST)
- Personal Income and Outlays at 8:30 a.m.
- Dallas Fed Manufacturing Survey at 10:30 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.