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The Dow Jones Industrial Average rallied 236 points in pre-market hours as investors grew increasingly bullish on trade discussions between the United States and China.
U.S. Commerce Secretary Wilbur Ross said yesterday that both nations could come to an agreement that both "can live with, and that addresses all the key issues."
China's trade officials have said they are acting in "good faith" and hope to reach a new agreement before their March deadline.
Here are the numbers from Monday 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.
The Top Stock Market Stories for Tuesday
- Amazon.com Inc. (NASDAQ: AMZN) is now the world's most valuable company. Shares added another 1.8% in pre-market hours thanks to ongoing optimism around the United States and China and additional stimulus out of the world's second largest company. Amazon's market capitalization now sits north of $800 billion. The company surpassed Microsoft Corp. (NASDAQ: MSFT), which finished 2018 at the top, and Apple Inc. (NASDAQ: AAPL), whose stock has slumped thanks to weak sales forecasts.
- The White House said Monday that Americans will still receive tax returns even if the IRS is running with just 12.5% of its typical workforce. In addition, U.S. President Donald Trump said he will deliver a prime-time speech this evening on his quest for a border wall between the United States and Mexico in an effort to end the shutdown.
- According to reports, grocery chain The Kroger Co. (NYSE: KR) and Microsoft Corp. (NASDAQ: MSFT) are teaming up to take on Amazon and Whole Foods. The two firms will work together to develop "smart stores," which include digital shelves, advertising, and price tags in two retail locations in Ohio and Washington State. The partnership aims to reduce customers' time in stores, streamline the shopping experience, and reduce costs for Kroger.
Money Morning Insight of the Day: This Company Could Be Holding the Biggest Tech Breakthrough of the DECADE
Global Market Insights sees this market worth over $80 billion by 2024.
Technology giants like Apple and Microsoft are making huge multimillion-dollar investments in this space.
Defense contractors and the U.S. military are using this market's technology to give soldiers a competitive "advantage at sea, land, and air." And one company is at the center of it all. See it here…
Stocks to Watch Today: JPM, AMZN, LOXO, LLY, SHLDQ, NFLX
- JPMorgan Chase & Co. (NYSE: JPM) kicked off its 37th Annual Healthcare Conference on Monday. While President Trump and Amazon were two key topics on day one, investors seemed more focused on the ongoing wave of M&A deals in the space. Yesterday, cancer drug manufacturer Loxo Oncology Inc. (NASDAQ: LOXO) announced it would be purchased by pharmaceutical giant Eli Lilly and Co. (NYSE: LLY) for $8 billion. Shares of LOXO stock rallied more than 66% after the news. Expect more deal news and strategy updates from healthcare companies at the San Francisco conference.
- Today may be the final day for Sears Holding Corp. (OTC: SHLDQ). This morning, the company's board will decide whether to accept a deal from Chair Eddie Lampert's hedge fund to save the company and 50,000 jobs. Lampert's hedge fund has proposed a $4.4 billion bid; however, advisers have argued that the offer falls short and would not receive permission from a bankruptcy judge to due to an ongoing investigation into company transactions under Lampert's term as chair. Should a resolution not be reached in the final hour, advisors will push for liquidation of the company's assets. This would be the end of one of America's most iconic retail companies. Sears, Roebuck & Company was founded in 1893 in Chicago, Illinois.
- Shares of Netflix Inc. (NASDAQ: NFLX) popped more than 6% Monday after the company said that more than 45 million subscribers watched the film "Bird Box" during its first week. The horror film, which stars Sandra Bullock, has been so successful that Netflix, which rarely unveils data on the number of people who watch their original content, may be able to court A-List stars and directors for more projects in the future.
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.