Why China’s Economy Weighs on the Dow Jones Today

Garrett Baldwin

Expect a dip in the Dow Jones today since the Chinese government announced its slowest industrial output in 17 years. Bad news for investors awaiting a U.S.-China trade deal.

The news also followed reports that a meeting between U.S. President Donald Trump and Chinese President Xi Jinping will be pushed back. More below on how this affects the Dow Jones Industrial Average. Plus, our latest on the Boeing scandal…

Here are the numbers from Wednesday for the Dow, S&P 500, and Nasdaq:

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 Thursday

• Investors are paying close attention to ongoing trade discussions between the United States and China. Although President Trump has said there is no rush to reach an agreement on trade, China is feeling the pressure of trade crunch. This morning, the country said that it is experiencing its slowest industrial output growth in 17 years. That news comes just weeks after the nation announced its expected GDP growth of 6.6%. While that figure would be welcomed in the United States, this is the slowest level of economic growth China has experienced in decades. That could keep a lid on stocks as traders digest the news, especially as a trade deal continues to elude both countries.

• The United States has grounded 737 Max flights, citing a link between two fatal plane crashes in the last five months. This is tough news for Boeing Co. (NYSE: BA), the manufacturer of the plane. Shares of BA stock are off another 0.6% this morning. Boeing stock has fallen in seven consecutive trading sessions.
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Stocks to Watch Today:

• Shares of Apple Inc. (NASDAQ: AAPL) were on the move after investment firm Cowen set the stock at a "Buy." Cowen initiated coverage of APPL stock and set a one-year price target of $220 per share thanks to expected growth in its services business.

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• Shares of General Electric Co. (NYSE: GE) were up more than 1.1% despite news that the firm's financial forecast fell well short of Wall Street expectations. The firm said that 2019 earnings will come in between $0.50 to $0.60 per share. That range is well below the $0.70 projected by Wall Street. CEO Larry Culp said that the firm's current financial standing is "complex but clear" and said that it will rebound in 2020.
• Shares of Tailored Brands Inc. (NYSE: TLRD) plunged more than 20% after the owner of Joseph A. Bank fell well short of investors' expectations. Although the firm beat earnings expectations, its 2019 outlook scared Wall Street. The firm expects a sharp decline in same-store sales.
• Look for other earnings reports from Broadcom Inc. (NASDAQ: AVGO), Jabil Inc. (NYSE: JBL), Noodles & Co. (NASDAQ: NDLS), Oracle Corp. (NASDAQ: ORCL), Tilly's Inc. (NASDAQ: TLYS), Ulta Beauty Inc. (NASDAQ: ULTA), and Zumiez Inc. (NASDAQ: ZUMZ).

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Garrett Baldwin

About the Author

Browse Garrett's articles | View Garrett's research services

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.

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