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The Dow Jones today could slip as the next recession becomes the talk of Wall Street.
The Treasury yield curve inverted last week, and yields on the benchmark 10-year U.S. bonds have reached their lowest levels since 2017. See the numbers in our top stories below - and what the president is doing in response.
Plus: why these analysts still recommend Boeing Co. (NYSE: BA) stock.
Here are the numbers from Tuesday 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 Wednesday
- Last week, the U.S. Treasury yield curve inverted, a surefire signal of looming recession. Treasury yields continue to slide, with a 10-year U.S. bond sitting at just 2.37%. That figure is the lowest level for the benchmark Treasury bond since late 2017. According to Reuters, the inversion of the Treasury yield has offered a false signal just one time in the last 50 years. U.S. President Donald Trump has blamed the Federal Reserve for the recession talk, and a cooler economy heading into 2020 would certainly make the odds of his reelection more difficult. Trump is expected to nominate economist Stephen Moore to the Federal Board of Governors this week. Moore has already called on the Fed to slash the benchmark interest rate by 50 basis points.
- Across the Atlantic, the focus is back on the Brexit. Today, British lawmakers will make a series of votes on the future of the country. Today, members of Parliament will explore alternatives to a full Brexit - although none of these alternatives are binding. The nation's currency - the pound - has been extremely volatile over the last few weeks. The EU recently granted Prime Minister Theresa May an additional two weeks to try to reach a new deal with Parliament or crash out of the European Union entirely.
- This morning, the stock market is falling. But you should not worry. In fact, you should love an opportunity to see stocks pull back from recent highs. It gives you an opportunity to scoop up the best stocks to buy for the long term. Money Morning Special Situation Strategist Tim Melvin has outlined the best stocks to purchase as markets stay in the red. You can read more right here.
Stocks to Watch Today: BA, C, AAPL, LULU
- Shares of Boeing Co. (NYSE: BA) were off 0.5% in pre-market hours as the fallout from its 737 Max Jets continues to rattle investor confidence. Its 737 Max planes have been grounded around the world as investigators continue to probe a recent crash in Ethiopia. That said, Citigroup Inc. (NYSE: C) maintains a "Buy" rating for Boeing stock, saying it could hit $400 per share by the end of the year.
- Shares of Lululemon Athletica Inc. (NASDAQ: LULU) lead a busy day of earnings reports. The yoga apparel manufacturer is expected to report earnings per share of $1.74 on top of $1.51 billion in revenue.
- Apple Inc. (NASDAQ: AAPL) stock fell more than 1% after a U.S. trade judge proposed that the U.S. government should ban some iPhones imported to the country. The judge made the recommendation thanks to the company's ongoing dispute with QUALCOMM Inc. (NASDAQ: QCOM).
- Today, look for more earnings reports from China Life Insurance Co. (NYSE: LFC), Five Below Inc. (NASDAQ: FIVE), Lennar Corp. (NYSE: LEN), Paychex Inc. (NASDAQ: PAYX), PVH Corp. (NYSE: PVH), and Verint Systems Inc. (NASDAQ: VRNT).
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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.