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The Dow Jones today traded 50 points higher in pre-market trading after the Chinese government announced that it welcomes direct talks with the United States if they will help avert a global trade war. The declaration came a day after U.S. Treasury Secretary Steven Mnuchin said he would fly to Beijing to discuss bilateral trade between the world's two largest economies.
With trade war tensions cooling, it's clear that the mainstream press largely misled investors about the ongoing tariff threats between the two countries over the last few months. However, it's not all bad news – their sensational approach to the conflict has created a significant buying opportunity in the agricultural industry. I did a quick write-up of the best way to take on this profit play over the weekend – check it 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 Money Morning insight, most important market events and stocks to watch.
Money Morning Insight of the Day
Earnings season is now in full swing, with today's key reports from Alphabet Inc. (Nasdaq: GOOGL) and Halliburton Co. (NYSE: HAL). Thanks to tax cuts, expectations are high. Analysts expect profit growth to top 18%, which would be the biggest jump in seven years. But there are a few bearish trends that are still lurking in the market. And if you're serious about making money, you need to know how to harness them and target individual stocks for life-changing gains. Money Morning Quantitative Specialist Chris Johnson explains.
The Top Stock Market Stories for Monday
- Global markets slid this morning as the 10-year bond pushed toward 3%. Investors are betting that the U.S. Federal Reserve will reach its target of interest rate hikes in 2018 and that inflation will continue to rise. These hikes will have a profound impact on the U.S. dollar. But U.S. investors need to look beyond their shores to see the real threat to the American dollar. Money Morning Global Energy Strategist Dr. Kent Moors discusses the three global crises that are going to impact every dollar that you make moving forward. Read it right here.
- Southwest Airlines Inc. (NYSE: LUV) canceled flights across the country in order to inspect the engines of 40 different airplanes. The inspections come a week after a mid-air engine explosion caused the first U.S. air fatality since 2009. Money Morning Executive Editor Bill Patalon breaks down the aftermath of the accident, and explains what it means for both Southwest and Boeing Co. (NYSE: BA).
- The price of Bitcoin pushed back toward $9,000 as the post-tax season breakout continues for the cryptocurrency markets. The total value of the global cryptocurrency market topped $400 billion this morning, a significant recovery from the massive downturn that occurred in the first quarter. As we explained on Saturday, now may be the best time to buy Bitcoin since July 2013. That month was when Money Morning Defense and Tech Specialist Michael A. Robinson went on live television with a bold prediction for Bitcoin (BTC), which would be followed by 25,351% gains at the peak of the cryptocurrency's run. Find out where Bitcoin is heading next, right here.
Three Stocks to Watch Today: GOOGL, LUV, HAS
- Alphabet Inc. (Nasdaq: GOOGL) leads another busy day of earnings reports on Monday. Wall Street anticipates that the online media giant will report earnings per share (EPS) of $9.21 on top of $24.29 billion in revenue.
- Hasbro Inc. (NYSE: HAS) slumped more than 7.6% in pre-market hours after the company reported earnings. The toymaker reported adjusted EPS of $0.10, well short of the $0.33 expected on Wall Street. The firm also reported weaker-than-expected revenue for the quarter. The firm named Toys 'R Us as a central reason for poor showing – the company recently liquidated its stores, impacting Hasbro Inc.'s (Nasdaq: HAS) bottom lines.
- Look for earnings reports from Halliburton Co. (NYSE: HAL), Alaska Air Group Inc. (NYSE: ALK), Whirlpool Corp. (NYSE: WHR), TD Ameritrade Holding Corp. (Nasdaq: AMTD), Kimberley-Clark Corp. (NYSE: KMB), Cadence Design Systems Inc. (Nasdaq: CDNS), and Chicago Bridge & Iron Co. NV (NYSE: CBI).