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Following Tuesday's sell off, the Dow Jones today continued to trade lower in premarket hours as fresh North Korean fears weighed on market optimism. Overnight, North Korea suggested that it may pull out of next month's talks if the United States insists upon full nuclear disarmament.
Markets are expected to move today after the10-year Treasury yield creeped above 3% to its highest level since 2011. Markets have been expecting lower inflation after several positive economic reports in recent weeks. Money Morning Liquidity Specialist Lee Adler explains that the Fed has lost control of interest rates... and that investors need to plan for the fallout from rising inflation.
Here are the numbers from Tuesday for the Dow, S&P 500, and Nasdaq:
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Now here's a closer look at today's Money Morning insight, the most important market events and stocks to watch.
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Money Morning Insight of the Day
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The Top Stock Market Stories for Wednesday
- Yesterday, North Korean officials threatened to pull out of next month's summit with President Donald Trump over demands tied to its nuclear weapons program. The announcement comes when tensions are already high over increasing inflation fears, Japan's economic contraction, and uncertainty around trade between the U.S. and China. Markets are likely to continue to react with uncertainty as the global political climate continues to grow increasingly volatile.
- WTI crude oil remained near $71.00 despite concerns as markets look to the Energy Information Administration on the state of U.S. inventory levels. Oil prices have been under pressure after the U.S. announced it would pull out of the Iran Nuclear Deal. The American Petroleum Institute projected Tuesday that U.S. stocks increased by 4.9 million barrels to 435 million barrels. The EIA will release its official report later this morning.
Three Stocks to Watch Today: M, SBUX, AMZN
- Macy's Inc. (NYSE: M) will lead another busy day of earnings reports. The retail company's stock surged more than 12% this morning after a huge earnings report that crushed Wall Street expectations. The firm reported EPS of $0.48, topping expectations of $0.37 by 11 cents. The company also beat revenue expectations by roughly $100 million and experienced a huge jump in same-store sales.
- It doesn't look like the U.S-China trade dispute will impact Starbucks Corporation (Nasdaq: SBUX). The coffee giant announced plans to build 3,000 new stores in China in the coming years. The company aims to double its store-front presence by the end of 2022 and hopes to double its profits and triple its revenue in the nation in the process.
- Amazon.com (Nasdaq: AMZN) is back in the news as it continues its slash-and-burn campaign against rival grocery store operators. This morning, the company announced it was slashing Whole Foods prices for its Prime members. The new price list includes 10% discounts on hundreds of items. The perks are rolling out in Florida first, and will expand to other locations this summer around the United States.
- Look for additional earnings reports from Cisco Systems (Nasdaq: CSCO), Jack in the Box (Nasdaq: JACK), Take-Two Interactive (Nasdaq: TTWO), Flowers Foods (NYSE: FLO), and Canadian Solar (Nasdaq: CSIQ).
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.