Your Friday Briefing: Dow Slides Over 60 Points as President Trump Proposes End to Quarterly Earnings Reports

Garrett Baldwin

The Dow Jones today slipped 68 points after U.S. President Donald Trump voiced his support for ending quarterly earnings reports. Trump said he spoke with many corporate executives and the consensus was that ending quarterly earnings reports would be a boon to American business.

The process of earnings reports has earned many critics over the years, many of whom argue that these targets increase short-term incentives at the expense of long-term business goals. The U.S. Securities and Exchange Commission is exploring the idea of having companies report earnings two times per year instead of the customary four quarterly reports. While the move is controversial, it might not be as crazy as it sounds…

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

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 has uncovered 217 double- and triple-digit peak-gain winners since 2011. Find out how it's done…

Money Morning Insight of the Day

Earnings season is well underway. And if you're looking to make real money, it's not too late to get started. Money Morning Quantitative Specialist Chris Johnson argues the markets are at a tipping point.

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The Top Stock Market Stories for Friday

• The Turkish lira slumped 6% on news that the Trump administration is willing to increase economic sanctions on the embattled country unless it releases Andrew Brunson, an American evangelical pastor who has been detained. Markets spent most of Thursday cheering trade developments between the United States and China, largely ignoring this ongoing drama. However, it's important to remember that Turkey's currency crisis may be a tremendous profit opportunity. Here's what you need to know.
• Semiconductor shares fell this morning as investors worried that the two-year surge in chip companies could be losing steam. Shares of Applied Materials Inc. (Nasdaq: AMAT) fell more than 5% after the world's largest semiconductor company fell short of quarterly expectations and issued a rather unimpressive outlook. The news pulled down shares of Micron Technology Inc. (Nasdaq: MU) and Intel Corp. (NYSE: INTC).

Three Stocks to Watch Today: DE, NVDA, JWN

• A light day of earnings reports features just Deere & Co. (NYSE: DE). The agricultural-machinery giant will attempt to keep momentum going despite the ongoing slump in farm incomes around the country. With soybean and corn prices moving lower, many farmers might now be able to purchase "new paint" – also known as new machinery. This factor could impact the company's forward guidance.
• Shares of NVIDIA Corp. (Nasdaq: NVDA) were off 2.5% after the firm reported quarterly earnings after the bell Thursday. The firm topped Wall Street earnings expectations by $0.10 with a $1.76 figure. However, the firm reduced its current quarter guidance due to falling demand in the cryptocurrency industry.
• Shares of Nordstrom Inc. (NYSE: JWN) popped more than 7% after the firm reported stronger-than-expected same-story growth and positive earnings expectation. The firm reported earnings per share (EPS) of $0.95 on top of $3.98 billion in revenue. Analysts had expected EPS of $0.83 on top of $3.98 billion in revenue.

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Garrett Baldwin

About the Author

Browse Garrett's articles | View Garrett's research services

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.

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