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The Dow Jones today will plummet as China plans its own tariff hike on $60 billion of U.S. goods starting June 1. This is the latest intensification of a trade war between the countries.
Other items moving the Dow: a bad weekend for ride-sharing. Details below.
Plus: why Boeing Co. (NYSE: BA) stock is in even deeper trouble than we thought.
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 said in a tweet this morning that he and Chinese President Xi Jinping "had a great deal" on the table but that China "backed out." Trump also warned the Chinese leader not to retaliate against the 25% tariffs on $200 billion in goods that went into effect on Friday. Trump warned that "it will get worse" for China moving forward. Trump said that both countries could continue to discuss trade, but no official meetings are scheduled at the moment. Reports indicate that Trump and Xi may meet at the G-20 Summit in Japan next month.
- Pharmaceutical stocks are facing new pressures, thanks to a massive lawsuit from 44 U.S. states. A lawsuit filed by the states accuses 20 drug makers of inflating prices by as much as 1,000%, stifling competition from generics. So far, just Teva Pharmaceuticals Industries Ltd. (NASDAQ: TEVA) has announced plans to fight the lawsuit. This morning, the SPDR S&P Biotech ETF (NYSE: XBI) was off 2.3%.
- Crude prices are one of the bright spots for the market on Monday. WTI crude oil added 2% to $62.89, while Brent added 2.1% and remained above $71 per barrel. The uptick in prices came after Saudi Arabia announced that two shipping containers were sabotaged while traveling off the Gulf of Oman. This is the latest in a string of supply concerns affecting global oil prices. Oil prices are up more than 30% this year as the Trump administration cracks down on both Venezuela and Iran, two major global suppliers.
Stocks to Watch Today: UBER, WFT, BA, LYFT
- The problems for global ride-sharing giant Uber Technologies Inc. (NYSE: UBER) went from bad to worse Monday morning. Shares plunged below $40 in pre-market hours, marking the second straight decline of more than 5%. The stock just went public on Friday. The sharp downturn comes as drivers around the world have been striking. Shares of rival Lyft are off 3.4%. Lyft Inc. (NASDAQ: LYFT) stock is now down to less than $50 per share. Lyft went public on March 29.
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- Today's biggest victim of the trade battle could easily be Boeing Co. (NYSE: BA). Wall Street is speculating that China may single out the American aircraft manufacturer, should tensions increase further between the countries. Air China currently has a contract with Boeing to build planes like the Dreamliner 787. The tensions come at a bad time for Boeing, as it is still facing ongoing pressures in the wake of the grounding of its 737 MAX jets. BA stock was off 3.4% in pre-market hours.
- Weatherford International Plc. (NYSE: WFT) shares plunged 60% in pre-market hours after the oilfield services giant filed for Chapter 11 bankruptcy protection. The company has been facing significant debt problems with the massive decline in oil prices since 2014. Despite efforts by its board to manage debt and sell assets, the firm lost several key executives and struggled to keep its balance sheet above water.
- Look for earnings reports from Famous Dave's of America Inc. (NASDAQ: DAVE), Gladstone Investment Corp. (NASDAQ: GAIN), Take-Two Interactive Software Inc. (NASDAQ: TTWO), and Tencent Music Entertainment Group (NYSE: TME).
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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.