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The Dow Jones today fell over 180 points in pre-market trading as trade tensions between the United States and China escalated once again. This morning, U.S. President Donald Trump's administration has threatened new tariffs on roughly $200 billion in Chinese goods. This announcement comes on the heels of last Friday's imposition of $50 billion worth of tariffs on Chinese goods.
The rumor has many investors concerned that an intensified battle will have negative consequences for the bottom lines of U.S. companies. While that's scaring Wall Street, we've found a select collection of industrial stocks trading at a discount – and on the verge of tremendous profit in the face of growing trade conflicts. Check them out here…
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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The Top Stock Market Stories for Wednesday
- President Trump's administration is preparing to slap China with 10% tariffs on roughly $200 billion in goods. The news sent stocks in Asia and Europe tumbling. The new list of goods includes everything from vegetables to baseballs. China's Commerce Ministry said that the new measures were "unacceptable" and suggested that the country will need to respond with "necessary countermeasures."
- In deal news, Twenty-First Century Fox Inc. (NYSE: FOXA) announced that it will purchase Sky Plc. (OTC MKTS: SKYAY) in a deal worth $32.5 billion. The Murdoch-run firm had been in a bidding war with U.S. rival Comcast Corp. (Nasdaq: CMCSA).
- Earnings season will continue to build momentum this week. Markets are very interested in the reports coming tomorrow and Friday. JPMorgan Chase & Co. (NYSE: JPM), Citigroup Inc. (NYSE: C), and Wells Fargo & Co. (NYSE: WFC) will all report earnings on Friday. According to FactSet, corporate earnings are expected to have increased by 20% during the second quarter.
Four Stocks to Watch Today: CAT, BA, PFE, FB
- Shares of Caterpillar Inc. (NYSE: CAT) and Boeing Co. (NYSE: BA) are both off more than 1% this morning as markets fear the ongoing trade spat between the United States and China. Investors are concerned that the tariffs will both increase the cost of raw materials and impact profitability across the board.
- Pfizer Inc. (NYSE: PFE) is making headlines on news that it will not be raising prices thanks to increased pressure from the Trump administration. The pharmaceutical giant's CEO had reportedly discussed drug prices with President Trump and the head of Health and Human Services. "Pfizer is rolling back price hikes, so American patients don't pay more. We applaud Pfizer for this decision and hope other companies do the same," President Trump tweeted.
- Facebook Inc. (Nasdaq: FB) is taking a hit this morning thanks to a big fine from the British government. Regulators in the United Kingdom said they have fined the firm a half-million pounds ($664,000) for failing to protect user data. The fine is directly tied to the harvesting of consumer information by Cambridge Analytica during the 2016 Presidential campaign season.
- Look for earnings reports from Fastenal Co. (Nasdaq: FAST), MSC Industrial Direct Co. Inc. (NYSE: MSM), and AngioDynamics Inc. (Nasdaq: ANGO).
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.