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The Dow Jones Industrial Average rose 158 points in pre-market trading as markets attempted to rebound from last week's sell-off. Concerns about global economic growth, trade wars, and corporate earnings continue to linger. The Dow is off 6.7% so far in October while the S&P 500 has entered correction territory.
October 2018 is likely to be the market's worst performing month since the 2008 financial crisis. With additional sell-offs likely, we're keeping a close eye on the trends driving this month's volatility and how we can protect our investments. Check out our strategy here...
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Here are the numbers from Tuesday 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 Monday
- Ongoing fears about Chinese economic growth sent the Shanghai Composite lower this morning. Profit growth cooled for the fifth straight quarter in China as the ongoing trade battle with the United States continues to weigh on companies. Meanwhile, the monthly U.S. personal income report indicated that wage growth fell short of economists' expectations. Wage growth increased by 0.2%, a figure that was half of expectations.
- It feels like the media has said everything there is to say about the market over the last three weeks of this downturn. However, talking heads are still missing something - something they're just not sharp enough to grasp about all of this. Money Morning Quantitative Specialist Chris Johnson tells you everything that you need to know about the recent market correction.
- Oil prices dipped Monday. Prices have fallen this month by the largest rate since October 2016 as geopolitical concerns continue to weigh on global sentiment. Oil prices are off roughly 7% despite sanctions hitting Iranian crude exports this week.
Money Morning Insight of the Day
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Stocks to Watch Today: RHT, HSBC, RIG
- Shares of HSBC Holdings Plc. (NYSE: HSBC) popped more than 3% after the British bank reported stronger-than-expected earnings. The firm reported a 28% jump in year-over-year quarterly profits. CEO John Flint said that the company has succeeded in cutting costs and boosting margins.
- Shares of Red Hat Inc. (NYSE: RHT) popped roughly 50% after the company announced it would be sold to International Business Machines (NYSE: IBM). The deal, worth $34 billion, will help IBM compete against firms like Amazon.com Inc. (NASDAQ: AMZN), Microsoft Corp. (NASDAQ: MSFT) and Alphabet Inc. (NASDAQ: GOOGL).
- Look for earnings reports today from Transocean Ltd. (NYSE: RIG), Akamai Technologies Inc. (NASDAQ: AKAM), Texas Roadhouse Inc. (NASDAQ: TXRH), Weatherford International Plc. (NYSE: WFT), Olin Corp. (NYSE: OLN), and Ensco Plc. (NYSE: ESV)
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.