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The Dow Jones today was off more than 100 points in pre-market hours after Boeing Co. (NYSE: BA) fell short of earnings expectations. The company slashed its 2018 earnings outlook to a range of $14.30 to $14.50. Wall Street had projected a consensus outlook of $14.56. Boeing shares are down 3.4% this morning.
Blue-chip stocks are moving lower after a disappointing roster of earnings reports before the bell. The downturn comes a day after Wall Street shrugged off concerns about the ongoing trade battle between the United States and China and rallied thanks to positive earnings reports. In fact, Money Morning Liquidity Specialist Lee Adler thinks this anxiety could be a sign of things to come…
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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Money Morning Insight of the Day
While Bank of America 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."
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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 Wednesday
- The Trump administration announced plans to bail out farmers on Tuesday. In the wake of U.S. President Donald Trump's trade escalation against China, corn and soybean prices have cratered in recent weeks. The administration has announced it will provide $12 billion in relief for farmers who have been impacted by Chinese tariffs on American farm commodities.
- Shares of General Motors Co. (NYSE: GM) cratered more than 5% this morning after the automotive giant slashed its full-year forecast. The firm reported "significant increases in commodity costs" and said that a stronger dollar is impacting its bottom line. Even though the firm beat Wall Street earnings and revenue expectations, rising production costs – tied in large part to aluminum and steel tariffs – have dramatically impacted analysts' expectations for the stock in the near future.
Three Stocks to Watch Today: T, KO, FB
- Shares of AT&T Inc. (NYSE: T) fell more than 2% this morning after the company fell short of Wall Street revenue expectations after the bell Tuesday. The company reported earnings per share (EPS) of $0.91, topping analyst projections by $0.06. However, the firm reported just $38.99 billion in Q2 revenue. That figure was about $400 million short of Wall Street revenue expectations. This is the first earnings report issued by the company since it purchased Time Warner.
- The Coca-Cola Co. (NYSE: KO) leads another busy day of earnings reports. Wall Street analysts projected a consensus EPS of $0.60 on top of $8.37 billion in revenue.
- Facebook Inc. (Nasdaq: FB) will report earnings after the bell. Average analyst expectations called for the social media giant to report Q2 EPS of $1.75 on $13.43 billion in revenue. Investors are looking for a big jump in video advertising revenue on the platform. In addition, expect a lot of chatter about the company's recent decision to suspend data analytics firm Crimson Hexagon from aggregating social media posts.
- Look for additional earnings reports from Advanced Micro Devices Inc. (Nasdaq: AMD), Ford Motor Co. (NYSE: F), Qualcomm Inc. (Nasdaq: QCOM), Gilead Sciences Inc. (Nasdaq: GILD), Visa Inc. (NYSE: V), PayPal Holdings Inc. (Nasdaq: PYPL), Las Vegas Sands Corp. (NYSE: LVS), GrubHub Inc. (NYSE: GRUB), Wynn Resorts Ltd. (Nasdaq: WYNN), and United Parcel Service Inc. (NYSE: UPS).
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.