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The Dow Jones Industrial Average jumped 211 points as markets attempted to recover from Thursday's sell-off. Markets found gains this morning on news that U.S. President Donald Trump plans to meet with Chinese leader Xi Jinping next month at the G-20 summit. Investors expect that both leaders will seek a resolution to ongoing trade issues.
Markets are likely to rise on today's financial earnings reports. However, that doesn't mean we're out of the woods yet…
Here are the numbers from Thursday for the Dow, S&P 500, and Nasdaq:
|Index||Previous Close||Point Change||Percentage Change|
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 Friday
- President Trump took another shot at U.S. Federal Reserve Chair Jerome Powell over the stock market's 1,300-point slide over the last two days. Trump blamed the U.S. central bank's decision to raise interest rates for the market's recent downturn. Trump referred to the Fed as "crazy," "loco," and said it has "gone wild" with monetary policy. "I think the Fed is out of control," Trump told reporters yesterday. However, the president said that he wouldn't replace Powell over the central bank's commitment to normalizing interest rates. (Note: The president cannot fire the chair of the Federal Reserve.)
- JPMorgan Chase & Co. (NYSE: JPM) leads a busy day of earnings reports in the banking sector. Jamie Dimon's firm reported a 24% jump in profits to roughly $8.4 billion. Wall Street had expected earnings per share of $2.25 on top of $27.53 billion in revenue. Traders were looking for a 20% bump year over year in quarterly income due to lower taxes, rising interest rates, and an uptick in lending.
- Tech stocks were trying to rebound this morning after a brutal sell-off during the week. Shares of Facebook Inc. (NASDAQ: FB) gained 1%; Amazon.com Inc. (NASDAQ: AMZN) found a 3% jump; Apple Inc. (NASDAQ: AAPL) added 2%, and, Netflix Inc. (NASDAQ: NFLX) popped 4%.
Money Morning Insight of the Day
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Three Stocks to Watch Today: WFC, C, MSFT
- The Wells Fargo & Co. (NYSE: WFC) earnings report fell just short of expectations before the bell. Analysts expected earnings per share of $1.17 on top of $21.77 billion in revenue. The firm reported EPS of $1.16, a figure that was just shy of expectations. The key focus this morning centers on the firm's expense management as it attempts to expand its profit margins under the Federal Reserve's asset cap.
- Citigroup Inc. (NYSE: C) also issued its quarterly earnings report. Average analyst expectations called for EPS of $1.67 on top of $18.4 billion in revenue.
- Shares of Microsoft Corp. (NASDAQ: MSFT) popped 2.7% in pre-market hours after the stock received an upgrade from Macquarie. The analysts noted Microsoft's ability to rebound from two previous pullbacks and noted the firm's strong earnings power. Macquarie raised its rating for MSFT stock from "Neutral" to "Outperform."
- Today, look for another earnings report from PNC Financial Services Group Inc. (NYSE: PNC). Wall Street anticipates earnings per share of $2.73 on $4.32 billion in revenue.
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.