Your Thursday Briefing: Dow Rallies 200 Points as Chinese Trade Relations Thaw

The Dow Jones today jumped over 200 points in premarket hours on reports that China's commerce ministry will send a trade delegation to Washington later this month. After a failed meeting with American officials in July, trade relations between the two nations have continued to deteriorate, squeezing American manufacturers and putting pressure on the renminbi, China's currency.

According to the Chinese Ministry of Commerce, the Chinese delegation will meet with American trade officials led by Under Secretary of Treasury for International Affairs David Malpass. While investors should view the announcement as a positive development, it's possible that negotiators will not be able to resolve trade conflicts between the two nations.

Here are the numbers from Wednesday for the Dow, S&P 500, and Nasdaq:

Index Previous Close Point Change Percentage Change
Dow Jones 25,162.41 -137.51 -0.54%
Nasdaq 7,774.12 -96.78 -1.23%
S&P 500 2,818.37 -21.59 -0.79%

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 Thursday

  • Walmart Inc. (NYSE: WMT) headlines a busy day of earnings reports today. Shares of WMT stock popped almost 10% after the firm reported its largest domestic sales increase in 10 years. Walmart reported adjusted earnings of $1.29 per share, a figure that topped expectations by $0.07 per share. Revenue also easily beat Wall Street expectations. The firm's positive earnings and revenue numbers helped push its rival Target Corp. (NYSE: TGT) up 3% as well before the bell Thursday.
  • dow jones industrial averageTurkey remains a major geopolitical headache for markets around the globe. The International Monetary Fund issued a statement arguing that the nation must take steps to stabilize its currency and help bring certainty to the global markets. The country's currency (the lira) is off about 40% this year as markets grow increasingly concerned about the nation's leaders' abilities to stave off inflation. Turkish President Recep Tayyip Erdogan has repeatedly called for lower interest rates despite clear proof that the nation's currency value is eroding.

Four Stocks to Watch Today: NVDA, JCP, BA

  • NVIDIA Corp. (Nasdaq: NVDA) will report earnings after the bell Thursday. Wall Street will be interested to learn the impact of falling Bitcoin and other cryptocurrency prices on the semiconductor giant's bottom line. The average trade estimate for earnings sits at $1.83 per share on top of $3.11 billion in quarterly revenue.
  • A day after news broke that U.S. retail spending was strong in the second quarter, J. C. Penney Co. Inc. (NYSE: JCP) shares plunged nearly 22% after the firm reported a larger quarterly loss than analysts had expected. Wall Street projected a quarterly loss of $0.07. The firm reported a quarterly loss of $0.38, and shares are now trading for less than $2.00. This is a perilous time for JCP, which could soon become another victim of the "Retail Apocalypse."
  • Shares of Boeing Co. (NYSE: BA) added another 2% in premarket hours. Shares popped after UBS Group AG (NYSE: UBS) initiated coverage of the airline manufacturer and issued a "Buy" rating. UBS projects that Boeing stock has an additional 50% upside to it.
  • Look for additional earnings reports from Applied Materials Inc. (Nasdaq: AMAT), Nordstrom Inc. (NYSE: JWN), Inc. (Nasdaq: JD), Zoës Kitchen Inc. (NYSE: ZOES), Madison Square Garden Co. (NYSE: MSG), and America's Car-Mart Inc. (Nasdaq: CRMT).

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About the Author

Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.

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