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The Dow Jones Industrial Average was little changed in pre-market trading despite a stronger-than-expected earnings report from Boeing Co. (NYSE: BA). Shares of the aircraft and space manufacturing giant popped 4.1% after the firm reported earnings per share (EPS) of $4.07 on top of $25.15 billion in revenue. Wall Street expected EPS of $3.45 on top of $23.72 billion in revenue. The company cited stronger demand from U.S. defense departments and hiked its full-year 2018 forecast.
This is the busiest week for earnings season, which means that markets are likely to exhibit heightened volatility. Markets are likely to move today on additional earnings reports and ongoing trade tensions with China.
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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The Top Stock Market Stories for Wednesday
- U.S. President Donald Trump took direct aim at Federal Reserve Chair Jerome Powell on Tuesday. The president complained that his predecessor Barack Obama "had zero" interest rates during the bulk of his two terms. Trump directly criticized the head of the central bank by name in an interview with The Wall Street Journal and said that Powell was endangering the U.S. economy. Trump said that every time that "we do something great, he raises interest rates." Trump suggested that he "maybe" regretted nominating Powell to run the U.S. central bank.
- China is not backing down from recent trade war escalations from the United States. At least, that's what leading members of China's committee on forging alliances informed a group of American business leaders and lobbyists this week. As we reported yesterday, trade relations between the world's largest trading partners are deteriorating. Now many investors are wondering if markets are heading toward a stock market crash.
- With geopolitical tensions rising around the globe, gold prices are pushing higher from their recent lows. The price of gold has traded in a range near $1,200 since mid-August. But now gold prices are hovering around $1,223, with a new floor forming. Money Morning Resource Specialist Peter Krauth projects that gold prices are heading higher… much higher. How high will gold prices go? Peter provides his answer right here.
Money Morning Insight of the Day
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Three Stocks to Watch Today: MSFT, BA, DB
- Microsoft Corp. (NASDAQ: MSFT) will lead a busy day of earnings on Wednesday. The software giant is expected to report earnings per share of $0.96 on top of $27.72 billion in revenue. Microsoft has quietly been pushing toward the $1 trillion market capitalization level. Expect a lot of focus on its cloud computing revenue.
- Things are going from bad to worse for Germany's largest financial institution Deutsche Bank AG (NYSE: DB). Shares fell another 4.2% this morning after the firm announced additional job losses and cuts to spending. Shares of DB stock are now off 43% for 2018.
- Look for earnings reports from Advanced Micro Devices Inc. (NYSE: AMD), Visa Inc. (NYSE: V), Ford Motor Co. (NYSE: F), F5 Networks Inc. (NASDAQ: FFIV), AT&T Inc. (NYSE: T), Las Vegas Sands Corp. (NYSE: LVS), 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.