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The Dow Jones today is projecting a 210-point gain on news that U.S. lawmakers have drafted an agreement that could prevent another government shutdown from coming this week. The government was recently shut down for 35 days over a dispute over border security.
While that's great news for stocks, an agreement with China would be an even bigger catalyst. Thankfully there are plenty of bullish opportunities ahead for plugged-in investors…
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
- This morning, investors are keeping a close eye on trade developments between the United States and China. Both nations are trying to reach a deal to avoid hiking tariffs on one another from 10% to 25%. Both U.S. President Donald Trump and Chinese President Xi Jinping are working a summit to take place at Mar-a-Lago in March 2019.
- In deal news, private equity giant JAB is going to hike its offer for 150 million shares of cosmetics giant Coty Inc. (NASDAQ: COTY) to $11.65 per share. News of the increased offer sent shares up more than 19% in pre-market hours. The private equity giant says that it believes the firm can turn around and address some challenges over the long term. Should JAB be able to obtain at least 50 million shares, it will then own roughly 60% of the firm's stock. Coty shares are off more than 50% over the last year.
- Two of Canada's largest cannabis producers – Aurora Cannabis Inc. (NYSE: ACB) and Canopy Growth Corp. (NYSE: CGC) – plan to release earnings this week. Investors are concerned about ongoing shortages in production and supply chain problems in the newly formed legal cannabis industry. These pain points are going to exist, and investors shouldn't worry about the recent downturn in share prices. They should look at the recent decline in pot stocks as a rare buying opportunity. Money Morning Director of Cannabis Investing Research Greg Miller breaks down the opportunities for investors in the future and gives you a list of the top pot stocks to buy right here.
Money Morning Insight of the Day
The 2018 midterm election was a turning point for the cannabis industry.
We expect nothing short of historic profits by the end of the year.
But not all pot stocks will hand you life-changing wins. In fact, often the companies making headlines are least likely to see the biggest gains.
These three stocks, on the other hand, are flying under the radar… for now. Each of them could see exponential stock price acceleration at any moment, and if you get in before that happens, you could turn a token stake into a lifetime of wealth.
I don't know of any other sector providing anywhere near this level of growth now.
Stocks to Watch Today: GILD, AMZN, UAA, JPM, AAPL, NFLX
- Shares of Gilead Sciences Inc. (NASDAQ: GILD) fell 2.4% after the biotech giant announced disappointing results from a trial for a drug for chronic liver disease.
- In deal news, Amazon.com Inc. (NASDAQ: AMZN) will buy Wi-Fi/home router startup Eero for an undisclosed amount. The global e-commerce giant has been going on a smart-home acquisition streak. Last year, the firm bought video doorbell maker Ring for $1 billion. Eero is based in San Francisco and was founded in 2014. The firm makes mesh routers that aim to eliminate dead zones across a house or business location.
- Shares of Under Armour Inc. (NYSE: UAA) gained more than 2.2% after the company reported earnings before the bell. The sports apparel giant reported earnings per share of $0.09 (on an adjusted basis). That figure beat expectations of $0.04. The company's sales were off about 6% in the fourth quarter but cited a big jump in foreign revenue.
- Last week, JPMorgan Chase & Co. (NYSE: JPM) released a report that recommended one of the deals of the decade. The bank has called for Apple Inc. (NASDAQ: AAPL) to buy streaming giant Netflix Inc. (NASDAQ: NFLX). This deal is a no-brainer in today's market. We break down what a deal would look like, how it benefits both sides, and how it would be like rocket fuel for Apple stock. Here's what you need to know.
- Look for earnings reports from Activision Blizzard Inc. (NASDAQ: ATVI), Aircastle Ltd. (NYSE: AYR), Akamai Technologies Inc. (NASDAQ: AKAM), Ares Capital Corp. (NASDAQ: ARCC), Denny's Corp. (NASDAQ: DENN), Groupon Inc. (NASDAQ: GRPN), HubSpot Inc. (NASDAQ: HUBS), Molson Coors Brewing Co. (NYSE: TAP), Occidental Petroleum Corp. (NYSE: OXY), Shopify Inc. (NASDAQ: SHOP), and TripAdvisor Inc. (NASDAQ: TRIP).
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.