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Also a noteworthy DJIA development: Walt Disney Co. (NYSE: DIS) is on fire.
Here are the numbers from Thursday 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
- U.S. President Donald Trump once again proved his Twitter feed has an incredible amount of power over the stock market. Over the weekend, Trump announced the current 10% levies on $200 billion worth of Chinese goods will increase to 25% later this week. Trump also said he plans to slap 25% tariffs on an additional $325 billion of Chinese goods "shortly." Trump has complained that trade negotiations are moving too slowly for his preference. Chinese stocks plunged more than 5% after Chinese officials threatened to pull out of negotiations and not attend trade talks in Washington this week. Goldman Sachs Group Inc. (NYSE: GS) wrote that this action by Trump was a major shift from the tone of U.S. officials in recent weeks. Goldman writes that "the probability of a near-term agreement is at least slightly lower than it seemed to be recently."
- Warren Buffett has spoken out on why he is ready to invest big in the energy industry. Buffett showed his enthusiasm to invest in a deal to help Occidental Petroleum Corp.'s (NYSE: OXY) goal of buying Anadarko Petroleum Corp. (NYSE: APC). During Berkshire Hathaway Inc.'s (NYSE: BRK.A) annual meeting, Buffett told investors that his firm plans to "put a lot of money" into energy projects. He also said that the Permian Basin represents a big opportunity given that it produces 4 million barrels of oil per day. You can also learn to profit from the energy industry here.
- Crude prices were off nearly 2% in pre-market hours after Trump announced plans for new tariffs on Chinese goods. WTI crude slipped 1.8% to roughly $60.80 per barrel, while Brent crude dropped another 1.5% to under $70 per barrel. Trump's decision to hike tariffs was called a "warning" by his top advisers; however, it has the potential to derail months of negotiations and sink the broader financial markets. The downturn in crude prices comes despite rising tensions in the Middle East. The United States has sent a bombers and a carrier group to the Middle East on reports that American forces in the region may have been targeted by Iran or a Tehran-sponsored group.
Stocks to Watch Today: DIS, UBS, CAT, AAPL, MU, KHC
- Shares of the Walt Disney Co. (NYSE: DIS) are in focus after the entertainment giant received a price target bump from UBS Group AG (NYSE: UBS). The Swiss bank hiked its target from $128 to $165, citing higher expectations for subscriber growth.
- Stocks are falling thanks to the threat of a trade war. This morning, Caterpillar Inc. (NYSE: CAT) and Apple Inc. (NASDAQ: AAPL) were both off more than 3% thanks to Trump's sudden threat of additional tariffs. Hardest hit this morning has been a slate of semiconductor companies with significant exposure to the Chinese economy. Shares of Micron Technology Inc. (NASDAQ: MU) were off more than 4% in pre-market hours.
- Shares of Kraft Heinz Co. (NYSE: KHC) are off more than 1.6% after the company announced plans to restate its earnings for 2016 and 2017. An SEC filing indicates that several employees made up several transactions between suppliers, which the firm referred to as misconduct. The firm will also restate its first three quarters of 2018.
- Look for earnings reports from American International Group Inc. (NYSE: AIG), American States Water Co. (NYSE: AWR), Cabot Corp. (NYSE: CBT), Del Taco Restaurants Inc. (NASDAQ: TACO), Hertz Global Holdings Inc. (NYSE: HTZ), Occidental Petroleum Corp. (NYSE: OXY), PetMed Express Inc. (NASDAQ: PETS), and Sysco Corp. (NYSE: SYY).
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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.