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The Dow Jones today was little changed in Wednesday's pre-market trading as markets awaited the testimony of U.S. Federal Reserve Chair Jerome Powell. Powell will testify before the House Financial Services Committee today. Yesterday, Powell provided commentary on trade, financial regulations, and wage stagnation to the Senate Banking Committee.
Powell stated that markets could expect more interest rate hikes thanks to the considerable growth of the U.S. economy. However, Powell did warn that a long trade war could hurt the U.S. economy. As chair, Powell is required to testify before the House and Senate twice a year on matters relating to the nation's monetary policy.
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
- Shares of Morgan Stanley (NYSE: MS) added nearly 3% in pre-market hours. The gain came after the investment reported strong earnings before the bell this morning. The company's profitability surged 39% year over year to hit $2.44 billion. The company reported earnings per share (EPS) of $1.30 on top of $10.6 billion in revenue. Wall Street analysts expected the financial titan to report EPS of $1.08 on top of $9.96 billion in revenue.
- Markets will again be paying close attention to statements from Federal Reserve Bank Chair Jerome Powell. On Wednesday, Powell will wrap up his two-day testimony on Capitol Hill. As we explained yesterday, the next person who could lose his or her shirt in this trade war is you.
- Amazon.com Inc. (Nasdaq: AMZN) stock is sitting at an all-time high as its annual Prime Day comes to a close. Look for the firm to report some initial results from its yearly shopping holiday. Despite glitches on Monday afternoon, the firm still reported strong sales over its first 12 hours.
Three Stocks to Watch Today: IBM, NFLX, GOOGL
- International Business Machines (NYSE: IBM) will lead a busy day of earnings reports. Wall Street will be looking for the company to report EPS of $3.03 on top of $19.66 billion in revenue. The tech giant will report earnings after the bell today.
- The European Commission has slapped Alphabet Inc. (Nasdaq: GOOGL) with a $5 billion antitrust fine. The EC says that it violated the law by pushing its own apps on Android phones in order to thwart its competition. The punishment comes after an investigation dating back to 2015.
- Shares of Netflix Inc. (Nasdaq: NFLX) have been rebounding thanks to renewed confidence from one of Wall Street's top banks. On Tuesday, Bank of America Corp. (NYSE: BAC) released a note saying that Netflix's recent earnings report offered a "compelling" buying opportunity. Shares had been falling after the firm reported weaker-than-expected subscriber growth in both the United States and abroad. However, BAC says that the company has a history that suggests it "never misses twice" when it comes to subscriber growth. BAC expects that Netflix will surpass expectations in Q3.
- Look for additional earnings reports from eBay Inc. (Nasdaq: EBAY), American Express Co. (NYSE: AXP), Kinder Morgan Inc. (NYSE: KMI), Abbott Laboratories (NYSE: ABT), United Rentals Inc. (NYSE: URI), U.S. Bancorp (NYSE: USB), W.W. Grainger Inc. (NYSE: GWW), Textron Inc. (NYSE: TXT), Canadian Pacific Railway Ltd. (NYSE: CP), PTC Inc. (Nasdaq: PTC), and Crown Holdings Inc. (NYSE: CCK).
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.