Today's Dow Jones Industrial Average will be largely flat after revived tensions in the U.S.-China trade talks. Investors worry U.S. President Donald Trump isn't bluffing about slapping China with 25% tariffs.
Other DJIA news: Millions were lost in a Bitcoin heist. Details below.
Here are the numbers from Tuesday 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 Wednesday
- This morning, markets are again paying very close attention to President Trump, who plans to hit the Chinese economy with 25% tariffs on hundreds of millions in goods starting Friday. Many analysts saw the president's tweet as a negotiation tactic, but after some silence and later confirmation from the White House, many are concerned he may instigate a trade war and quickly send global markets plunging. Chinese leaders are scheduled to arrive and meet with U.S. trade officials on Wednesday. It remains unclear if Trump's sudden decision will lead to a regression and potential cancellation in negotiations.
- The price of Bitcoin was on the verge of hitting $6,000 before a massive breach occurred at the popular cryptocurrency exchange Binance. According to reports, hackers used a variety of infiltration techniques to steal 7,000 bitcoins (nearly $42 million at the time) from the exchange. In addition, the hackers were able to make off with critical user information like dual-factor authentication codes. The company tracked the hack back to a single wallet. It has suspended deposits and withdrawals while it reaches out to its customers and conducts a full investigation. Bitcoin was up nearly 9% in a week prior to the breach.
- Oil prices are ticking higher after a recent slide. Markets continue to monitor developments in Venezuela, where opposition parties attempt to oust Nicolas Maduro from power. Meanwhile, the U.S. military is responding to reported threats made by Iran or a Tehran-backed proxy group. WTI crude prices were up 0.7% in pre-market hours, while Brent crude added 0.5% and remained above $70 per barrel on the international market.
Stocks to Watch Today: LYFT, EA, ORCL
- Shares of Lyft Inc. (NASDAQ: LYFT) fell more than 2.8% after the company reported its first earnings report as a public company. Shares fell after the ride-sharing giant reported concerning profit and revenue figures. The company lost a staggering $1.14 billion... on top of just $776 million in revenue. That said, the firm did report that active Riders increased by 46% while revenue increased by 95%. The stock is well below its March IPO price of $72, and remember that the firm has said in its S-Filing that it may never be profitable. Don't buy on the dip yet. Wait until the insider lockup period is complete.
- Shares of Electronic Arts Inc. (NASDAQ: EA) popped more than 7% after the firm reported stronger than expected earnings in Q1 and issued a strong guidance report for its 2019 fiscal year. The firm reported EPS of $0.69 on top of $1.36 billion in revenue. It was just a week ago that we recommended investors pick up shares ahead of EA's earnings report. Even at today's prices, the stock still has upside of $135 per share. Here's why.
- Oracle Corp. (NYSE: ORCL) announced plans to lay off more than 900 people in China. CNBC has reported the layoffs, which its corporate headquarters had not denied. It is unclear whether the company is laying employees off due to concerns about the Chinese economy or ongoing uncertainty around trade between the United States and China.
- Today, look for more earnings reports from Barrick Gold Corp. (NYSE: GOLD), Carvana Co. (NASDAQ: CVNA), CenturyLink Inc. (NYSE: CTL), Chesapeake Energy Corp. (NYSE: CHK), Fossil Group Inc. (NASDAQ: FOSL), Honda Motor Co. Ltd. (NYSE: HMC), IAC/InterActiveCorp (NYSE: IAC), McKesson Corp. (NYSE: MCK), New York Times Co. (NYSE: NYT), Office Depot Inc. (NYSE: ODP), Roku Inc. (NASDAQ: ROKU), Sarepta Therapeutics Inc. (NASDAQ: SRPT), Toyota Motor Corp. (NYSE: TM), and Wendy's Co. (NYSE: WEN).
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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.