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The Dow Jones today will look to extend its nine-week winning streak when the bell opens on Monday.
Over the weekend, U.S. President Donald Trump decided to extend a key deadline on tariffs. That news has Dow Futures up 159 points before the bell Monday. The uptick comes after Chinese stocks saw their best one-day performance in three years.
But don't get too comfortable. We'll break down President Trump's announcement below.
Here are the numbers from Friday for the Dow, S&P 500, and Nasdaq:
|Index||Previous Close||Point Change||Percentage Change|
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
- Warren Buffett's Berkshire Hathaway Inc. (NYSE: BRK.A) took a $4 billion hit after Kraft Heinz Co. (NYSE: KHC) offered a dismal earnings report last week. Buffett says that his company did not overpay for Kraft when it bid on the company and combined it with Heinz. Buffett conducted an interview with CNBC over the weekend that offered his take on current market conditions. He said that Berkshire was very close to making a "very large acquisition" a few months ago. Buffett would not disclose which company his firm considered nor would he say what caused his decision. "I'll give you a hint," he said. "It's on the planet." Berkshire now has a cash pile worth $112 billion.
- President Trump announced over the weekend that his administration will extend its March 1 deadline to reach a new deal on trade with China. The president cited "substantial progress" between the United States and China. According to multiple reports, Trump is considering a meeting at his Florida golf club with Chinese President Xi Jinping in late March. Trump met with the nation's vice premier last week as the countries tried to overcome differences over technology transfers and Chinese support for its currency. China has already committed to buying $1.2 trillion in U.S. goods to help alleviate the massive trade deficit between the two countries. But there are still no specifics from the administration on how long the deadline will be extended for. Plus, the president is holding a second sit-down talk with North Korea this week that could ratchet up uncertainty, especially if the meeting ends poorly.
- In deal news, shares of General Electric Co. (NYSE: GE) popped more than 17% in pre-market hours. The company has sold its biopharma business for $21.4 billion to Danaher. The company will use the proceeds to cut down on leverage and bolster its balance sheet.
Money Morning Insight of the Day
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Stocks to Watch Today: KHC, HD, JWN, M, AAPL
- Kraft Heinz Co. (NYSE: KHC) is still licking its wounds after an abysmal earnings report on Thursday and a weak 2019 outlook. The consumer goods giant is looking to reshape its business as consumer tastes continue to evolve. According to reports, the firm – backed heavily by Warren Buffett's Berkshire Hathaway Inc. (NYSE: BRK.A) – is considering a deal to sell its Maxwell House brand.
- Warren Buffett is also affecting shares of Apple Inc. (NASDAQ: AAPL). Although AAPL stock added 0.4% in pre-market hours, Buffett said he would not purchase more shares of the company stock at these levels. However, should AAPL stock pull back in the near future, the "Oracle of Omaha" would consider purchasing more.
- Earnings season may be winding down, but concerns about the U.S. brick-and-mortar retail industry are always high. This week, Home Depot Inc. (NYSE: HD), Nordstrom Inc. (NYSE: JWN), and Macy's Inc. (NYSE: M) will report earnings from the holiday quarter.
- Look for earnings reports from American States Water Co. (NYSE: AWR), Chatham Lodging Trust (NYSE: CLDT), EPR Properties (NYSE: EPR), Etsy Inc. (NASDAQ: ETSY), Life Storage Inc. (NYSE: LSI), Mosaic Co. (NYSE: MOS), Oneok Inc. (NYSE: OKE), Potbelly Corp. (NASDAQ: PBPB), Preferred Apartment Communities Inc. (NYSE: APTS), Rent-A-Center Inc. (NASDAQ: RCII), Shake Shack Inc. (NYSE: SHAK), and Tenet Healthcare Corp. (NYSE: THC).
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.