The Dow Jones Industrial Average is finally seeing some signs of life as it's made gains over the last two days. And the rally is on track to keep rolling today.
The Dow Jones projected a 35-point gain in pre-market hours as Wall Street is finally seeing tensions relax between the United States and China over trade. Investors appear more optimistic that the two nations will reach a deal after China announced plans to buy roughly 1.5 million tons of soybeans from American farmers.
A pause in the U.S.-China trade war could kick off a new rally in the stock market...
Here are the numbers from Wednesday for the Dow, S&P 500, and Nasdaq:
Yesterday, Reuters reported that China will buy a staggering 1.5 million tons of U.S. soybeans, the largest purchase of U.S. beans in more than six months. China had effectively pushed American farmers out of its lucrative market earlier this year by hiking tariffs on U.S. soybean imports. That news set off a huge decline in U.S. farm income, as soybean prices plunged under $8 per bushel. Investors are hoping that the two countries will be able to reach a deal and offer beaten-down stocks some relief this Holiday season.
WTI crude oil prices fell back under $51 per barrel as the bear market for crude continues to deepen. The downturn comes despite news that traders expect further production cuts from OPEC. But the big news was the International Energy Agency said it expects that the global market will experience a supply deficit in the second quarter of 2019. This forecast assumes that OPEC producers will commit to their deal to slash production by 1.2 million barrels per day. Money Morning Global Energy Strategist Dr. Kent Moors says that history is repeating itself with these wild swings in oil prices. Based on what happened under similar conditions in the past, you could make a fortune playing the wild swings in oil volatility over the next few months. In the meantime, Dr. Moors has the scoop on how to turn a frigid winter into a profitable one...
Cannabis stocks are heading higher as the 2018 Farm Bill heads to U.S. President Donald Trump's desk for his signature. The new farm bill legalizes hemp as a crop and will remove the crop from the Schedule 1 list of the Controlled Substances Act. Investors are hoping that the ongoing movement to legalize marijuana at the state level will evolve into a movement to get marijuana removed from the Schedule 1 list as well. Shares of New Age Beverage (NASDAQ: NBEV) popped more than 8% on the news. Other cannabis stocks like Tilray Inc. (NASDAQ: TLRY) and Canopy Growth Corp. (NYSE: CGC) added more than 2% this morning.
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Shares of General Electric Co. (NYSE: GE) popped more than 8% on Thursday morning. The stock rallied after an analyst at JPMorgan Chase & Co. (NYSE: JPM) upgraded the stock. The analyst, who had a long-term negative view on the stock, changed his tune, citing a better risk-reward balance with the price sitting at a rock-bottom level. The analyst upgraded the stocks from Neutral to Underweight, but kept his price target at $6 per share. GE was the worst-performing Dow component of 2017 and was ultimately delisted from the index.
Shares of Tailored Brands Inc. (NYSE: TLRD) plunged more than 26% in pre-market hours after the owner of apparel firms fell well short of Wall Street revenue expectations and downgraded its forward guidance. Although the company reported earnings per share of $1.01, which beat estimates by $0.06, the firm slashed its outlook on concerns about falling same-store sales.
Apple Inc. (NASDAQ: AAPL) announced plans to build a new company campus in North Austin, Texas. The firm also said it will invest $10 billion in to its data centers across the United States. The investments are part of a broader initiative to create at least 20,000 new jobs in the United States. The news comes after changes to tax laws made it harder for the firm to avoid taxes on its international profits.
Look for earnings reports from Ciena Corp. (NASDAQ: CIEN), Fred's Inc. (NASDAQ: FRED), Costco Wholesale Corp. (NASDAQ: COST) and Adobe Systems Inc. (NASDAQ: ADBE).
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.