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While Google will take center stage today, rumors are swirling about a blockbuster tech deal that would upend Wall Street. More on that below.
Here are the numbers from Friday 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 Monday
- Wall Street is gearing up for another big week of earnings reports. The markets continue to show optimism in the wake of Friday's jobs report that showed 304,000 new positions were created in January. That was the largest gain since February 2018. But everyone is talking today about the "Big Game." The New England Patriots beat the Los Angeles Rams in Super Bowl on Sunday night. It wasn't the offensive explosion that many people had expected, with the Patriots winning by a score of 13-3.
- Oil prices hit a two-month high after OPEC announced additional production cuts and the U.S. slapped sanctions on the Venezuelan government. Brent crude was sitting near $64 per barrel as new supply concerns offset a weakening demand picture. OPEC's oil supply fell in January to its lowest levels in two year.
- Finally, JPMorgan Chase & Co. (NYSE: JPM) is advocating for one of the biggest tech deals of the decade. In a research note, analysts suggested that Apple Inc. (NASDAQ: AAPL) should use its massive cash hoard to buy streaming giant Netflix Inc. (NASDAQ: NFLX). Apple is developing its own streaming service, and acquiring Netflix would make it the instant leader in the sector. Apple has $250 billion in cash, and a Netflix deal would cost about $189 billion, according to the numbers.
Money Morning Insight of the Day
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Stocks to Watch Today: GOOGL, PZZA, CLX
- Alphabet Inc. will report earnings after the bell Monday. Wall Street analysts anticipate the search giant will report sales growth of 20% higher than the same period one year ago. The company, however, is still recovering from public relations problems tied to data privacy, sexual harassment, and security breaches. Investors are banking on stronger ad revenue numbers as the firm continues to face renewed threats from e-commerce giant Amazon.com Inc. (NASDAQ: AMZN).
- Shares of Papa John's International Inc. (NASDAQ: PZZA) popped more than 6% after the company announced that hedge fund Starboard will invest $200 million into the company. In addition, the firm has announced that Starboard's Jeffrey Smith will become chair of the board. The news comes a week after Papa John's board dismissed the idea of an outright sale of the company. Shares have been under pressure since its founder was ousted from the firm.
- Shares of Clorox Co. (NYSE: CLX) jumped more than 5% in pre-market hours after the firm reported earnings before the bell. The firm reported earnings per share of $1.40, a number that was $0.10 higher than Wall Street expectations.
- Look for earnings reports from AvalonBay Communities Inc. (NYSE: AVB), Clorox Co. (NYSE: CLX), Gilead Sciences Inc. (NASDAQ: GILD), Glu Mobile Inc. (NASDAQ: GLUU), Legg Mason Inc. (NYSE: LM), Leggett & Platt Inc. (NYSE: LEG), Seagate Technology Plc. (NYSE: STX), and Sysco Corp. (NYSE: SYY).
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.