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The Dow Jones today is expected to open more than 200 points down after China slaps tariffs on U.S. oil exports worth $1 billion a month.
The ongoing escalation of trade tensions between the United States and China – the world's two largest economies – has rattled investor confidence. But it's not time to overreact. Too much caution right now could cost you big time…
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 most important market events and stocks, plus Monday's economic calendar.
The Top Stock Market Stories for Monday
- Markets are digesting a wealth of ongoing geopolitical tension around the globe. The most critical this morning is news that the United States and South Korea are poised to announce the suspension of large, joint military exercises. The announcement is part of an early framework designed to end North Korea's nuclear weapons program. Should North Korea fail to keep its promise, the United States and South Korea would restart their "war games."
- Last week, U.S. President Donald Trump slapped tariffs on roughly $50 billion in Chinese products. Sure enough, China has responded with tariffs on a wealth of goods including whiskey, soybeans, and several other agricultural products. Shares of Boeing Co. (NYSE: BA) and Caterpillar Inc. (NYSE: CAT), two of the top exporters to China, will likely face additional pressure during Monday's trading session.
- The other major story to watch is happening at Theranos. The blood-testing company's founder, Elizabeth Holmes, and its former president were indicted on charges that the company created a series of schemes to defraud patients, doctors, and investors. The U.S. Justice Department announced the indictment on Friday. According to the charges, Holmes and Ramesh Balwani used advertising and solicitations to encourage physicians to user their blood-testing services. However, Holmes and Balwani both knew that their facilities could not provide reliable results on a consistent basis. The company once reached a $9 billion valuation, and Holmes had a net worth of roughly $4 billion.
Money Morning Insight of the Day
Last month, Congress caved to the big banks on Wall Street and let them go right back to the risky, speculative gambles they were making when they collapsed the economy in 2008. And it could lead to the next financial crisis.
According to Money Morning Capital Wave Strategist Shah Gilani, we shouldn't be surprised. Here's what you need to know to stay out ahead of the next major crash.
Four Stocks to Watch Today: DIS, JASO, AAPL, GOOGL
- Shares of The Walt Disney Co. (NYSE: DIS) are in focus thanks to a record-breaking weekend for its Pixar division. The company's film "Incredibles 2" collected a staggering $180 million during its first weekend in the domestic box office. The massive windfall is the largest opening weekend for an animated film and easily topped the studios previous record for "Finding Dory" ($135.1 million).
- The e-commerce wars are heating up in China. This morning, Alphabet Inc. (Nasdaq: GOOGL) – the owner of Google – announced it would purchase a $550 million stake in com Inc. (Nasdaq: JD), a Chinese e-commerce firm and primary rival to Alibaba Group Holding Ltd. (NYSE: BABA).
- Apple Inc. (Nasdaq: AAPL) announced it has inked a multiyear deal with Oprah Winfrey to create original content for the company's television division. The deal is the largest content partnership in Apple's history. The company is trying to compete with rivals Netflix Inc. (Nasdaq: NFLX), com Inc. (Nasdaq: AMZN), and Time Warner Inc.'s (NYSE: TMX) HBO division. Winfrey is expected to create new shows and to appear on screen. "Together, Winfrey and Apple will create original programs that embrace her incomparable ability to connect with audiences around the world," the company said in a statement.
- Look for an earnings report from JA Solar Holdings Co. Ltd. (Nasdaq: JASO). Wall Street expects the renewable energy giant will report earnings per share of $0.02 on top of $593 million in revenue.
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.