The Dow Jones Industrial Average fell 100 points on Tuesday after the White House issued a clarification on the short-term economic truce between the United States and China.
Yesterday, the Trump administration appointed veteran trade negotiator Robert Lighthizer to headline future trade negotiations with China. Lighthizer is a notorious Chinese hardliner who analysts believe may undermine additional progress with the Chinese.
Today, pay close attention today to stocks with significant exposure to the Chinese economy like Boeing Co. (NYSE: BA), Caterpillar Inc. (NYSE: CAT), and Deere & Co. (NYSE: DE).
Here are the numbers from Monday for the Dow, S&P 500, and Nasdaq:
Index
Previous Close
Point Change
Percentage Change
Dow Jones
25,826.43
287.97
1.13%
S&P 500
2,790.37
30.20
1.09%
Nasdaq
7,441.51
110.98
1.51%
Now, here's a closer look at today's Money Morning insight, the most important market events, and stocks to watch.
The Top Stock Market Stories for Tuesday
Today, oil prices pushed higher as markets prepare for a critical meeting between OPEC members and Russia. With oil currently in a bear market, investors expect that the world's largest oil cartel will work with non-members to cut overall daily production in order to press oil prices higher. U.S. shale production continues to rise, reducing the upside for oil prices around the globe.
Cigarette manufacturer Altria Group Inc. (NYSE: MO) is exploring a deal to buy marijuana producer Cronos Group Inc. (NASDAQ: CRON). Shares of CRON popped more than 11% Monday after rumors of a deal emerged. The reports appear to mirror the efforts of Constellation Brands Inc. (NYSE: STZ), which took a sizeable stake in Canopy Growth Corp. (NYSE: CGC) earlier this year.
Stocks to Watch Today: HPE, HR, AAPL, HSBC, TOL
Shares of Restoration Hardware Holdings Inc. (NYSE: RH) popped more than 22% this morning after the furniture giant topped Wall Street earnings expectations after the bell Monday. The company reported earnings per share of $1.52, a figure that beat expectations by $0.25. Although the firm said that tariffs are affecting its business, RH did hike its current-quarter earnings and revenue expectations thanks to strong business demand.
Shares of Apple Inc. (NASDAQ: AAPL) dipped nearly 2% after the tech giant received a stock downgrade from HSBC Holdings Plc. (NYSE: HSBC). The iconic financial institution slashed its 12-month price target from $205 to $200 and raised concerns that the firm is facing the realities of "market saturation." Analysts are concerned that Apple is too focused on one product to be successful and raised concerns about an economic downturn in Asian markets, where Apple had been growing its customer base.
Toll Brothers Inc. (NYSE: TOL) shares fell by 3% despite news that the firm topped Wall Street earnings expectations. The homebuilder reported earnings per share of $2.08, a figure that beat Wall Street estimates by $0.25 per share. The firm also topped revenue expectations and said that deliveries had reached their highest level in a decade. However, rising interest rates, labor costs, and raw material costs have reduced overall orders, and thus the firm's outlook in the future.
Look for other earnings reports from AutoZone Inc. (NYSE: AZO), Bank of Montreal (NYSE: BMO), Dollar General Corp. (NYSE: DG), Marvell Technology Group Ltd. (NASDAQ: MRVL), and Movado Group Inc. (NYSE: MOV).
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.