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The Dow Jones today traded flat in pre-market hours as investors continued to mull over the Trump administration's conflicting messages on trade policy. On Monday, U.S. Treasury Secretary Steven Mnuchin stated that an article in The Wall Street Journal reporting the administration's intentions to curb Chinese investment in American technology companies was incorrect and should not be taken seriously, despite U.S. President Donald Trump's claims to the contrary.
The Dow is expected to stage a modest recovery after yesterday's 328-point drop. However, it's important to be prepared for additional volatility. Money Morning Special Situation Strategist Tim Melvin has identified a few key ways investors can shield themselves from market downturns – and profit in the process. Check out Tim's findings here…
Here are the numbers from Monday 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.
Don't Miss: This secret stock-picking method is so good, if you started with a small stake, a string of these picks could have earned you $1.2 million. Find out how it's done…
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.
The Top Stock Market Stories for Tuesday
- The Chinese stock market has entered bear market territory. The Shanghai Composite is off more than 20% since January. Ongoing concerns about the nation's economic growth and a large-scale trade war with the United States have weighed on investor sentiment. This morning, Treasury Secretary Mnuchin attempted to alleviate concerns about the ongoing selloff by rolling back statements on the nation's intention to limit domestic Chinese investment.
- Gold prices took a beating last week, but sentiment may have finally hit an intermediate-term bottom – and it could make this moment one of the best buying opportunities you'll see. Money Morning Resource Specialist Peter Krauth explains why now is the time to buy gold.
- Canada is in the process of legalizing weed, and that's opening the floodgates for billions of dollars to flow into the industry. On June 19, the Canadian Senate voted to legalize recreational marijuana use. By Oct. 17, Canadian Prime Minister Justin Trudeau wants recreational sales to start, according to CBS. Here's how you can profit from this event.
Three Stocks to Watch Today: GE, BHGE, HOG
- General Electric Co. (NYSE: GE) stock popped 5.5% after the company announced a series of spin-off plans on Tuesday. The company said that it will divest its GE Healthcare business and sell its stake in oilfield services giant Baker Hughes Co. (NYSE: BHGE). General Electric, which was recently dropped from the Dow Jones Industrial Average, will now focus exclusively on its aviation, power, and renewable energy businesses.
- Harley Davidson Inc. (NYSE: HOG) is taking criticism from President Trump. The company recently said it will be moving some of its U.S. production abroad due to tariffs from the European Union. The iconic motorcycle giant had previously said that tariffs would add an additional $2,200 in cost to every motorcycle that it sold. Trump threatened the company earlier today, stating that if it moves operations overseas, "they will be taxed like never before!"
- Look for additional earnings reports from Sonic Corp. (Nasdaq: SONC), Lennar Corp. (NYSE: LEN), FactSet Research Systems Inc. (NYSE: FDS), AeroVironment Inc. (Nasdaq: AVAV), and Jinko Solar Holding Co. Ltd. (NYSE: JKS).
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.