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The Dow Jones Industrial Average could see its winning streak end as optimism over a trade deal with China faded.
The Dow Jones futures projected a 63-point slide in pre-market hours as the United States and China reached a standstill over technology transfers and cybersecurity threats.
But an earnings beat this morning is propelling this global retailer higher, and that could be enough to keep markets in the green…
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 Tuesday
- Walmart Inc. (NYSE: WMT) reported stronger-than-expected earnings this morning. Shares of WMT stock popped more than 4.5% in pre-trading hours after the firm announced a whopping 43% jump in e-commerce sales during the holiday shopping season. Same-store sales also increased by 4.2%, easily beating Wall Street expectations of 3.2%. The firm's adjusted earnings per share of $1.41 and $138.79 billion in revenue also topped consensus forecasts.
- The 2020 election campaign is heating up. Senator Bernie Sanders of Vermont has announced he will enter the crowded field of candidates for the Democratic nomination. Sanders finished second during the 2016 Democratic campaign, losing to Hillary Clinton and raising concerns about the party's delegate system. Meanwhile, Massachusetts Senator Elizabeth Warren is set to propose a universal $70 billion childcare program that would offer daily care to up to 12 million American children. Warren has proposed to pay for the program with a 2% annual levy on household wealth above $50 million. However, such a tax would face significant legal challenges due to uncertainty on whether it passes constitutional muster.
- Last week, U.S. President Donald Trump signed a bill to prevent another government shutdown. However, because the bill did not fund his border wall, the president declared a national emergency on the Mexican border. Democrats are now challenging Trump's legal authority around emergency powers and illegal immigration.
- Wall Street is still digesting opposition for stock buybacks. Last week, Senators Chuck Schumer (D-NY) and Bernie Sanders (D-VT) took to The New York Times to rally against stock buybacks. But they've got it all wrong. Money Morning Capital Wave Strategist Shah Gilani explains that the senators' plan is disingenuous at best and downright dangerous at worst. Here's what you need to know about this debate – and how to profit from the story.
Money Morning Insight of the Day
If you're like most Americans, you've felt a sense of market turmoil ahead. We could be in for another white-knuckle ride… a "Great Reckoning," if you will.
The vast majority of folks don't see this coming, and those few who do are not preparing properly… nor profitably.
So ask yourself, right now: Are you where you want to be financially?
If the answer is yes, that's great.
If the answer is no, then understand that you are not alone – and you need to click here now…
Stocks to Watch Today: HSBC, NAVI, LUV
- Shares of HSBC Holdings Plc. (NYSE: HSBC) fell more than 2% in pre-market hours. The slide came after the bank announced that it anticipated "a weaker global economic outlook." The bank also issued a warning about the upcoming Brexit and said that many of its customers in the United Kingdom are "understandably cautious about the immediate future." The firm also issued a weaker earnings report than expected.
- The company to watch today is Navient Corp. (NASDAQ: NAVI), which is the largest student loan servicer in the country. Sallie Mae spun off the company in 2013. It has 12 million customers and services about $300 billion in loans. While no one likes student loans, a few key metrics show this stock is a raging buy right now. Here's what you need to know to get your trading week started.
- Southwest Airlines Co. (NYSE: LUV) is under scrutiny from the Federal Aviation Administration. According to reports, a probe is underway on whether the company has failed to calculate checked baggage loads on flights correctly. The Wall Street Journal reports that several planes carried 1,000 pounds of cargo more than what was listed on flight paperwork.
- Look for earnings reports from Advance Auto Parts Inc. (NYSE: AAP), Ecolab Inc. (NYSE: ECL), La-Z-Boy Inc. (NYSE: LZB), LendingClub Corp. (NYSE: LC), and Texas Roadhouse Inc. (NASDAQ: TXRH).
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.