The Dow Jones today added 38 points in pre-market trading as investors awaited interest-rate decisions from the U.S. Federal Reserve and the European Central Bank. Today, the Fed is expected to raise interest rates for the second time in 2018. On Thursday, the ECB will announce whether it will continue to promote financial liquidity in European markets through quantitative easing.
Quantitative easing has remained a controversial policy since both American and European central banks introduced it following the 2008 financial crisis. However, Money Morning Liquidity Specialist Lee Adler thinks this controversy misses the big picture of quantitative easing - and the consequences...
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
Before the June FOMC meeting, silver prices are hovering at very attractive price levels. The price of silver is up 3.4% in the past week, while gold has trended sideways. With interest rates likely heading higher on Wednesday, it's going to be a very good time for silver hounds to buy on the dip and deliver incredible profits in the months ahead. Learn more right here.
The Top Stock Market Stories for Wednesday
- The Fed Open Market Committee ends its meeting on monetary policy today. Federal Reserve Chair Jerome Powell is likely to announce a hike of 0.25% to the benchmark rate of 2%. Markets will be looking for clues during Powell's conference to determine how many additional times that the Fed plans to raise interest rates during the final six months of the year. The Fed is on the verge of fueling the next crisis. Here is how you need to protect your money right now.
- Shares of Time Warner Inc. (NYSE: TWX) added roughly 5% in pre-market hours after a U.S. judge approved its merger with AT&T Inc. (NYSE: T). The Justice Department had filed a suit in November 2017 to block the $85.4 billion deal.
- The United States, Canada, and Mexico will host the 2026 Soccer World Cup, topping Morocco in a hotly contested bidding process. This will be the first time that the World Cup has been in North America since 1994, when the U.S. hosted the event. The United States did not qualify for the 2018 event.
Three Stocks to Watch Today: TSLA, FOXA, TWTR
- Tesla Inc. (Nasdaq: TSLA) stock added 3% after the company announced plans to lay off roughly 9% of its global workforce. On Tuesday, CEO Elon Musk said that the decision was part of a difficult yet necessary reorganization of Tesla. Musk also announced that the company has decided not to renew its deal with Home Depot Inc. (NYSE: HD) to showcase solar products in the home retailer's stores.
- Shares of Twenty-First Century Fox Inc. (NYSE: FOXA) popped more than 5% after the Justice Department lost its lawsuit to block the Time Warner-AT&T deal. The Time Warner deal now sets the stage for a bidding war for Fox's assets by Comcast Corp. (Nasdaq: CMCSA) and Walt Disney Co. (NYSE: DIS). On July 10, FOXA shareholders will vote on whether to sell many of its highly prized assets to Walt Disney after the firm previously rejected an offer from Comcast worth 16% more than the Disney offer.
- Shares of Twitter Inc. (NYSE: TWTR) popped roughly 5% as markets prepare for the start of the World Cup this week. The 2014 World Cup was a positive for the social media giant as it hauled in about $24 million in revenue over the duration of the event. Many analysts believe that this year's event could generate significantly more revenue given the growth of its user base and expected engagement levels.
- Look for earnings reports from Tailored Brands Inc. (Nasdaq: TLRD), Korn Ferry International (NYSE: KFY), and Bitauto Holdings Ltd. (Nasdaq: BITA).
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.