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The Dow Jones today will stay flat since U.S. President Donald Trump hinted at more tariffs over Memorial Day weekend.
Alongside a trade war, we also have beer wars, oil supply shrinkage, and a big auto industry merger moving the DJIA. Details below.
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 Tuesday
- The United States isn't prepared to strike a deal with China just yet. Ongoing tensions have investors flocking to safety. The 10-year Treasury bond fell to about 2.26%, which is the lowest level we've seen in 19 months. Trump recently hit China with tariffs of 25% on about $200 billion in Chinese goods and threatened higher levies on another $300 billion. The two nations continue to bicker about China's state-run economy, technology transfers, and intellectual property theft – but a notable innovation could revive the markets sooner rather than later, and here it is.
- Oil prices ticked higher Tuesday as concerns about supply began to spread across the global economy. Tightening supplies have occurred due to OPEC production cuts, ongoing sanctions by the U.S. government against Iran and Venezuela, and supply chain challenges across the United States. The slight uptick in prices today comes after one of the worst weeks for crude prices in months. Last week, Brent crude dropped 4.5%, while WTI crude was off 6.4%. Analysts raised concerns about a surprise uptick in U.S. inventories and global growth due to the ongoing trade spat.
- In deal news, Fiat Chrysler Automobiles NV (NYSE: FCAU) is considering a deal to merge with France's Renault SA (OTC: RNLSY). The deal would create the third largest auto manufacturer in the world and give both companies a leg up in intellectual property and technology. Shares of FCAU jumped more than 8% in pre-market hours.
Stocks to Watch Today: UBER, BABA, TAP, BUD
- Shares of Uber Technologies Inc. (NYSE: UBER) are off slightly after the ride-sharing giant announced the departure of one of its board members. Uber will report earnings for the first time as a public company this week. Expect a lot of volatility as investors take a look under the hood for the very first time.
- Alibaba Group Holding Ltd. (NYSE: BABA) announced that it is considering a plan to list its shares on the Hong Kong stock exchange. The company could raise as much as $20 billion to help it invest in infrastructure and technology while China is stuck in a trade battle with the United States. Alibaba previously raised a $25 billion float when it listed on the NYSE in 2014.
- The beer wars continue to heat up. Molson Coors Brewing Co. (NYSE: TAP) just won a major dispute with its rival Anheuser-Busch InBev NV (NYSE: BUD). A court said that Anheuser, the brewer of Bud Light, could no longer claim in its commercials that Molson's MillerCoors division uses corn syrup in its beers. The court ruling will effectively shut down Bud Light's recent string of commercials.
- Look for earnings reports from Bank of Nova Scotia (NYSE: BNS), Booz Allen Hamilton Holding Corp. (NYSE: BAH), Heico Corp. (NYSE: HEI), Nio Inc. (NYSE: NIO), Workday Inc. (NASDAQ: WDAY), and YY Inc. (NYSE: YY).
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