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The Dow Jones today jumped over 50 points in pre-market trading after the White House announced it had developed a tentative trade deal with the European Union. U.S. President Donald Trump and European Commission President Jean-Claude Juncker announced they were working on a deal to knock down barriers to trade between the two blocs.
President Trump had previously threatened to hit European cars with a 25% tariff shortly after hitting the EU with tariffs on aluminum and steel. Shares of Volkswagen (OTC MKTS: VLKAY) popped more than 4% on the news. Jumps like this can put you in profits for weeks – if you know how to play them. Money Morning Technical Trading Specialist D.R. Barton, Jr., recently identified a method to find the next Volkswagen play. Check it out here…
Here are the numbers from Wednesday 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.
Money Morning Insight of the Day
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The Top Stock Market Stories for Thursday
- Shares of Facebook Inc. (Nasdaq: FB) fell by 20% in pre-market hours. The downturn came after the social media giant reported revenue growth will slow during the second half of 2018. Even though the firm topped earnings expectations by $0.02, its quarterly revenue and user-growth expectations were well below Wall Street expectations. At one point, the sell-off knocked as much as 24% off of FB stock price. It is clear that ongoing privacy concerns remain a weight on the stock.
- In deal news, shares of Arconic Inc. (NYSE: ARNC) popped more than 10% this morning. Shares of the aerospace giant rallied on rumors of a potential buyout from private equity firms. The Wall Street Journal reported the company is considering two offers. The first comes from Apollo Global Management LLC (NYSE: APO). The second is a joint offer from Blackstone Group LP (NYSE: BX) and The Carlyle Group LP (Nasdaq: CG).
Four Stocks to Watch Today: AMZN, CMCSA, QCOM
- Shares of Amazon.com Inc. (Nasdaq: AMZN) will lead headlines after the bell Thursday. The e-commerce giant will report earnings just a week after its annual Amazon Prime holiday. Wall Street expected earnings per share of $2.49 on top of $53.46 billion in revenue.
- Comcast Corp. (Nasdaq: CMCSA) topped earnings expectations for the second quarter but fell slightly short on revenue. The firm said that it had added roughly 260,000 new broadband customers over the previous three months. That was the largest subscriber growth in the second quarter for that business line in a decade. CMCSA stock was up 3.2% before the bell. However, Chinese regulators held out on a deal and let the clock expire this morning. Shares of NXPI stock fell more than 4% on the news.
- Shares of Qualcomm Inc. (Nasdaq: QCOM) popped more than 6% thanks to a deal that fell through due to ongoing trade tensions between the United States and China. The company had been working for two years to complete a purchase of Dutch chip manufacturer NXP Semiconductors N.V. (Nasdaq: NXPI).
- Look for additional earnings reports from Chipotle Mexican Grill Inc. (NYSE: CMG), Starbucks Corp. (Nasdaq: SBUX), Intel Corp. (Nasdaq: INTC), Under Armour Inc. (NYSE: UAA), Baidu Inc. (Nasdaq: BIDU), Mastercard Inc. (NYSE: MA), Electronic Arts Inc. (Nasdaq: EA), Expedia Group Inc. (Nasdaq: EXPE), Celgene Corp. (Nasdaq: CELG), First Solar Inc. (Nasdaq: FSLR), and Western Digital Corp. (Nasdaq: WDC).
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.