Investors are pulling back as the U.S. Department of Transportation launches an investigation into the Federal Aviation Administration's approval of 737 Max 8 planes.
More below on how this, U.S.-China trade news, and updates to monetary policy are affecting the Dow.
Plus, a weed stock to watch that's already popped 300% since last year…
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
- The United States and China have made progress on a trade deal. According to the South China Morning Post, China's Vice Premier Liu He spoke with Trump officials by phone. Last week, multiple media outlets reported that Chinese leaders want to combine a state visit to the United States around the signing of a new trade pact between the two nations.
- Finally, expect a lot of chatter today about the U.S. Federal Reserve. Tomorrow, the central bank will start its latest two-day meeting on monetary policy and interest rates. The Fed isn't expected to raise rates this week or alter its plan for tightening its balance sheet significantly. Here's what investors need to know ahead of this week's Fed Open Market Committee meeting. Investors are advised to prepare for the worst-case scenario and get out ahead of the market in case anything goes sideways.
- Finally, oil prices ticked slightly higher ahead of OPEC's pending meeting on supply cuts. According to reports, Russia has agreed with OPEC's plans to reduce the cartel's oil production output in the coming weeks.
Stocks to Watch Today: TLRY, FB, CZR, ERI
- Tilray Inc. (NASDAQ: TLRY) leads a busy day of earnings reports as the cannabis producer helps investors wind down earnings season. Since its IPO in 2018, TLRY stock has more than tripled in price. However, shares are off 3% so far this year and have pulled back from $300 per share in September. The question most analysts are asking is whether TLRY can justify its massive evaluation at a time that the legal cannabis industry is just getting off the ground. The average Wall Street forecast for today's earnings report calls for a loss of $0.15 per share on top of $18.95 million in revenue. Here are the top cannabis stocks to buy ahead of Tilray's earnings report.
- Facebook Inc. (NASDAQ: FB) may soon experience a large exodus of leadership at the executive level. Shares of FB stock are off nearly 1% after a Needham Management analyst slashed the stock's rating to underperform with a price target of $170. The analyst said the recent departure of 11 Facebook executives could spark a greater wave of resignations. The company has faced more criticism for its customer data management practices and its live-streaming of a terrorist attack in New Zealand last week.
- In deal news, shares of Caesars Entertainment Corp. (NASDAQ: CZR) rallied 5% on the news it is in merger talks with Eldorado Resorts Inc. (NASDAQ: ERI). Reuters notes that hedge fund icon Carl Icahn has been pressing executives at Caesars to make a deal and sell its assets. Icahn placed three nominees on Caesars' board of directors.
- Look for other earnings reports from Del Taco Restaurants Inc. (NASDAQ: TACO), Lumber Liquidators Holdings Inc. (NYSE: LL), Overstock.com Inc. (NASDAQ: OSTK), and StoneCo Ltd. (NASDAQ: STNE).
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