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The Dow Jones today was little changed in pre-market trading as markets eyed the latest round of earnings reports and prepared for the testimony of U.S. Federal Reserve Chair Jerome Powell. Powell will testify before the Senate Banking Committee today followed by a meeting with the House Financial Services panel on Wednesday.
With earnings season underway, many investors are worried about the impact tariffs will have on their investments' bottom lines. Money Morning Technical Trading Specialist D.R. Barton, Jr., has identified a little-known way to avoid the impact of tariffs altogether – and make a killing in the process. Check out D.R.'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
While Goldman Sachs Group is making headlines today (along with other Wall Street earnings reports), the real money for investment banks could soon be found in the "Green Rush." Wall Street banks could soon open up their doors to the $10 billion marijuana industry.
Let's talk the top news in the marijuana industry today… including four stocks that could surge up to 1,000% during this election year. Here's what you need to know…
The Top Stock Market Stories for Tuesday
- Goldman Sachs Group Inc. (NYSE: GS) is leading a busy day of earnings reports on Tuesday. Shares are off 0.4% after the firm despite reporting a 40% year-over-year jump in profits and stronger-than-expected revenue. The firm reported earnings per share (EPS) of $5.98 on top of $9.40 billion in revenue. The Wall Street giant was expected to report EPS of $4.67 on top of $8.71 billion in revenue. The investment bank's first six months of 2018 were its strongest in nine years. The stock slipped after the company announced that president David Solomon will be replacing CEO Lloyd Blankfein when he steps down from his role. Blankfein has been CEO for 12 years.
- It's fair to say that Amazon.com Inc. (Nasdaq: AMZN) went to the dogs on Monday. The company has extended its Prime Day promotion through 3 a.m. on Wednesday. The announcement came after the firm suffered significant outages during the start of the event on Monday afternoon. Rather than get access to deals, many customers were met with pictures of dogs, the firm's standard error page.
- Finally, pay close attention to events on Capitol Hill on Tuesday. The U.S. House Judiciary Committee will question leaders of Alphabet Inc. (Nasdaq: GOOGL), Twitter Inc. (NYSE: TWTR), and Facebook Inc. (Nasdaq: FB) about how they store and filter user content. Last year, the Senate and House of Representatives slammed the companies for their roles in and responses to Russia's interference in the 2016 election.
Three Stocks to Watch Today: CSX, NFLX, KKR
- CSX Corp. (Nasdaq: CSX) will help lead today's earnings calendar. Wall Street expects that the company will report EPS of $0.86 on top of $2.98 billion in revenue.
- Shares of Netflix Inc. (Nasdaq: NFLX) slipped after the firm's user-growth estimates and quarterly revenue came in below Wall Street expectations. Analysts largely overlooked the streaming giant's strong profit estimate. The firm reported EPS of $0.85, topping estimates of $0.79.
- Private equity giant KKR & Co. Inc. (NYSE: KKR) has announced it will purchase digital audiobook producer RBMedia. The details of the deal were not announced, but it is worth noting that the company is moving into a growing industry and competing directly against Amazon on this business. Audiobook industry revenue is projected to hit $900 million, a figure that represents a 20% jump year over year.
- Look for additional earnings reports from Johnson & Johnson (NYSE: JNJ), UnitedHealth Group Inc. (NYSE: UNH), Charles Schwab Corp. (NYSE: SCHW), ADTRAN Inc. (Nasdaq: ADTN), Interactive Brokers Group Inc. (Nasdaq: IBKR), Omnicom Group Inc. (NYSE: OMC), Comerica Inc. (NYSE: CMA), Fidelity National Financial Inc. (NYSE: FNF), and Progressive Corp. (NYSE: PGR).
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.