How North Korea's Nuclear Program Is Moving the Dow Jones Today

The Dow Jones today rose 100 points higher in pre-market trading after news broke that North Korea is willing to hold talks on denuclearization.

After decades of pushing for nuclear armament, the Kim Jong Un told the South Korean government that he is willing to discuss scaling down and possibly disassembling its nuclear program.

However, we'll believe it when we see it. It's still a good idea to protect your money from North Korea’s nuclear threat…

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.

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The Five Top Stock Market Stories for Tuesday

• According to the South Korean National Security Office, North Korean leader Kim Jong Un not only has said he won't use nuclear weapons against South Korea, but his country would consider denuclearization. North Korea's government has reportedly said that they do not need nuclear weapons so long as there is no threat to regime change.
• Fears of a global trade war abated slightly on Monday. One week after announcing plans to slap tariffs on foreign steel and aluminum, U.S. President Donald Trump now says that he is willing to eliminate those tariffs if the United States is able to broker a better deal in the renegotiation of NAFTA.
• From "Pharma Bro" to a jail cell – that's the life of former drug company executive Martin Shkreli. Just days before he is scheduled to receive his sentence for securities fraud, a judge has slapped financial punishment on Shkreli. He must forfeit $7.36 million and could be forced to surrender a Picasso painting and his famous one-of-a-kind Wu-Tang Clan album.
• Gold prices moved upward to $1,330 in pre-market hours thanks to a weaker U.S. dollar this morning. In addition, gold traders are still eyeing chatter around the globe surrounding President Trump's stance on tariffs on steel and aluminum. As Money Morning Resource Specialist Peter Krauth explained on Monday, tariffs would provide a boost to gold prices due to the uptick in geopolitical worries already in place around the globe. Read more.
• Crude oil prices showed some gains in pre-market hours. Traders are digesting recent production forecasts from the International Energy Agency. The global watchdog has suggested that U.S. production could top a staggering 17 million barrels per day by 2023. That suggested uptick in supply has many people hoping that American shale producers can reach an agreement with OPEC to prevent a battle between the two and a massive glut in global supply should we experience a pullback in global demand. The WTI crude oil price today added 0.6%. Brent crude dipped 0.7%.

Three Stocks to Watch Today: TGT, JWN, ASCA

• Shares of Nordstrom Inc. (NYSE: JWN) dipped about 3% this morning. The downturn came after a special committee elected by the board of directors rejected a plan to take the retail giant private. Members of the Nordstrom family have proposed over the last six months to take the firm private, but this committee felt the offering price was too low. Expect another round of debate and another offer in the near future.
• Shares of Ascena Retail Group Inc. (Nasdaq: ASNA) fell by more than 11% after the firm did not meet earnings expectations after the bell on Monday. The retail giant – which owns Dressbarn, Ann Taylor, and Loft – reported a sales decline of 2%. It also slashed guidance for the upcoming quarter.
• Shares of Target Corp. (NYSE: TGT) dipped 0.8% after the company fell short of earnings estimates this morning. Though the retail giant did top Wall Street revenue estimates for the most recent quarter, TGT reported earnings per share of $1.37. The average analyst estimate came in at $1.39. The stock received some support thanks to a 3.6% jump in same-store sales.
• Look for additional earnings reports from Urban Outfitters Inc. (Nasdaq: URBN), Ross Stores Inc. (Nasdaq: ROST), Autodesk Inc. (Nasdaq: ADSK), CIENA Corp. (Nasdaq: CIEN), and H&R Block Inc. (NYSE: HRB)

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

• New York Fed Bank President William Dudley speaks at 7:30 a.m.
• Redbook at 8:55 a.m.
• Factory Orders at 10 a.m.
• Four-Week Bill Auction at 11:30 a.m.
• Treasury STRIPS at 3 p.m.
• Federal Reserve Governor Lael Brainard speaks 7 p.m.
• Dallas Federal Reserve Bank President Robert Kaplan speaks at 8:30 p.m.

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Garrett Baldwin

About the Author

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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.

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