The Dow Jones today traded nearly 150 points higher in pre-market trading, as investors paired losses from Friday's dramatic sell-off. Prompted by U.S. President Donald Trump's fresh round of tariffs on Chinese exports, Friday's sell-off pushed the Dow down over 700 points before closing with a 572-point loss. Positive comments on trade negotiations from the president and the Chinese foreign minister over the weekend have fostered hope that further trade disruption will be limited.
With trade war fears hanging over markets, volatility has climbed to all-time highs. In order to help Money Morning readers protect the profitability of their portfolios, we've put together a list of the three best investments you can make during times of intense volatility. Check them out here...
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 to watch.
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The Top Stock Market Stories for Monday
- Concerns about a trade war between the United States and China receded over the weekend after President Trump sent a message on Twitter that said he foresaw a "Great future for both countries." Even though China has blamed the United States for current trade problems, markets anticipate that the U.S. and China will eventually find common ground in order to ease economic hostilities.
- In the European financial sector, the CEO of Deutsche Bank AG (NYSE: DB) will be stepping down. While CEO John Cryan has only been on the job for three years, he will step down at the end of the month. Shareholders were so pleased with the news that the stock jumped 3% in pre-market hours. Under Cryan's leadership, the firm has cut thousands of jobs and closed hundreds of branches. However, his efforts have not resulted in the turnaround that many investors had expected.
- Deals are heating up, and it's a remarkable time to be focusing on mergers and acquisitions. This morning, Novartis AG (NYSE ADR: NVS) announced it will purchase gene therapy firm AveXis Inc. (Nasdaq: AVXS) for $8.7 billion in cash. The deal will expand Novaritis' reach in neurodegenerative diseases therapies.
Money Morning Insight of the Day
The threat of an all-out trade war with China has investors and traders alike on edge. But while a global trade war involving the United States could hurt some stocks, it's creating a profit opportunity in others. I'll show you exactly which stocks could benefit as new trade barriers are erected... here's what you need to know to start your Monday.
Four Stocks to Watch Today: VIAB, CBS, FB, TSLA
- Viacom Inc. (Nasdaq: VIAB) is generating a lot of buzz after the firm became the subject of takeover rumors in the last week. The company has requested that suitor CBS Corp. (NYSE: CBS) hike its bid by another $2.8 billion. The two firms are currently squabbling over the amount of stock that it would take to complete a deal.
- Facebook Inc. (Nasdaq: FB) has announced that it suspended data analytics firm CubeYou from its platform. The company has allegedly been gathering information on Facebook users through a series of quizzes and violated privacy standards. The news comes the same day that CEO Mark Zuekerberg is set to meet with U.S. lawmakers. He will appear before members of Congress on Tuesday and Wednesday.
- Tesla Inc. (Nasdaq: TSLA) has announced a recall of 8,900 Model S vehicles from China. The company said that it aims to address a power steering matter. The company has been voluntarily recalling vehicles that were manufactured before April 2016 to replace certain blots in the power steering column. This is the latest black eye for the company, as it continues to suffer from manufacturing delays across its operations.
- Look for earnings reports from Clear Channel Outdoor Holdings Inc. (NYSE: CCO), WageWorks Inc. (Nasdaq: WAGE), and Sigma Designs Inc. (Nasdaq: SIGM).
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.