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The Dow Jones today projected a 223-point gain during pre-market trading on news that China and the United States are making progress on their trade relationship. Over the weekend, the Trump administration announced that it was postponing the imposition of tariffs on China in an effort to smooth trade negotiations.
While investors are excited to lock in today's gains, Money Morning Special Situation Strategist Tim Melvin recently showed readers that not all market returns are equal. In fact, there's one popular Wall Street investment that is ripping off investors left and right. Check out Tim's warning here…
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 Money Morning insight, the most important market events, and stocks to watch…
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Money Morning Insight of the Day
Markets have been under pressure once again by the U.S. Federal Reserve. Inflation levels are going through the roof… but the people in charge of managing it have been lying to Americans for years. Now, it's time to get even. Money Morning Liquidity Specialist Lee Adler has the perfect way to make a lot of money when no one is looking. Read it here.
The Top Stock Market Stories for Monday
- Markets are cheering news that the supposed trade war between the United States and China is "on hold," according to U.S. Treasury Secretary Steven Mnuchin. Mnuchin and U.S. President Donald Trump's top economic advisor, Larry Kudlow, announced that both nations have reached an agreement, one that established a framework to help address ongoing trade imbalances between the two countries.
- The prices of crude oil is in focus after Venezuelan President Nicolas Maduro won reelection over the weekend. The election featured a very low turnout and a very large outcry that the vote was rigged. Maduro has a 75% disapproval rating and has been the face of the OPEC member's widespread mismanagement and economic collapse. Prior to the election, a member of the Trump administration said that the United States would not recognize the authenticity of the election. The United States is considering additional sanctions on Venezuela.
- Today is a major day for mergers and acquisition activity. Today, Blackstone Group LP (NYSE: BX) announced plans to purchase U.S. hotel operator LaSalle Hotel Properties (NYSE: LHO) for a whopping $3.7 billion. The deal comes at a time that the travel industry is experiencing one of the best periods in a decade. If you're looking for a way to make money ahead of Memorial Day weekend, we show you how here.
Four Stocks to Watch Today: GOOGL, GE, MBFI, FITB
- Alphabet Inc. (Nasdaq: GOOGL) is under pressure this morning after a harsh piece aired last night on "60 Minutes." The segment discussed the organization's power and influence. It also featured interviews with a range of critics who argued the firm is stifling competition.
- In other deal news, General Electric Co. (NYSE: GE) announced plans to merge its transportation business with a rail equipment maker called Wabtec. The $20 billion deal is expected to provide about $10 billion in tax benefits to the conglomerate. Shares of GE stock popped 2.3% on the news.
- Fifth Third Bancorp (Nasdaq: FITB) announced it was purchasing MB Financial Inc. (Nasdaq: MBFI) in a deal worth $4.7 billion. Wall Street M&A activity is heating up as companies look for growth. MBFI stock popped 14% on the news.
- Look for earnings reports from Monro Inc. (Nasdaq: MNRO), Nordson Corp. (Nasdaq: NDSN), Pure Storage Inc. (Nasdaq: PSTG), Ferroglobe Plc. (NYSE: GSM), and America's Car-Mart Inc. (Nasdaq: CRMT).
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.