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Despite ongoing trade tensions and concerns about rising oil prices, the Dow Jones today rose over 130 points in pre-market trading. Tech stocks pushed higher, while WTI crude oil added more than 1.1%, despite news of increased output by OPEC and Russia in the future.
The Dow Jones is expected to build on yesterday's gains, which were driven by better-than-expected U.S. manufacturing data. Trading volume is expected to be lower than normal today because of the Fourth of July holiday on Wednesday. American markets will be closed for the holiday tomorrow.
Here are the numbers from Monday 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
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The Top Stock Market Stories for Tuesday
- The global markets are moving higher as investors prepare for Friday's jobs report. Economists have estimated that the U.S. economy added 200,000 new positions during June. However, trade tensions are rising as markets prepare for the Trump administration to slap tariffs on $34 billion in Chinese goods starting on the same day. It doesn't appear that either the United States or China – which will retaliate with its own tariffs – is going to relent.
- Airline stocks are falling as Wall Street analysts warn about a potential decline in market performance. Deutsche Bank AG (NYSE: DB) downgraded several airline stocks Tuesday. The German investment bank noted that these companies typically underperform during times of heightened geopolitical risk similar to the ongoing trade disputes. Shares of American Airlines Group Inc. (Nasdaq: AAL), Delta Air Lines Inc. (NYSE: DAL), and United Continental Holdings Inc. (NYSE: UAL) all declined after the research firm's downgrade.
- It's starting to feel like 2006 all over again. A report from CoreLogic indicates that U.S. home prices increased by a staggering 7.1% year over year in May. Home prices have been surging thanks to a sharp decline in available inventory across the country. However, there could be a snag in the housing market in the coming months. The same report indicated that fewer Americans would look to buy should interest rates continue to rise. It's a seller's market right now.
Three Stocks to Watch Today: CPB, AMZN, EBAY
- Shares of Campbell Soup Co. (NYSE: CPB) are up 4.2% in pre-market hours. According to a report in the New York Post, activist hedge fund Third Point is pushing the company to explore a sale. The news comes a month after the same newspaper reported that Kraft Heinz Co. (NYSE: KHC) has explored the idea of purchasing the company behind the iconic soup brand.
- Amazon.com Inc. (Nasdaq: AMZN) announced that its annual "Prime Day" will kick off on July 16. The event will now last 36 hours, a 20% increase from last year. The event could provide a boost to AMZN stock at a moment when most investors are increasingly worried about the impact of a trade war between the United States and China.
- eBay Inc. (Nasdaq: EBAY) announced that it will maintain its alternative shopping event to Amazon Prime Day on July 17. Although the company never mentions Amazon by name, the company's press release takes a shot at its rival by stating that customers won't need to pay for a membership in order to access the deals.
- Look for an earnings report from Acuity Brands Inc. (NYSE: AYI). Wall Street expects that the company will report earnings per share of $2.17 on top of $906.7 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.