The Dow Jones Industrial Average is expected to stay flat after a CNBC report that China has accused the United States of "naked economic terrorism" due to its demands around its state-run economy.
Also moving the Dow today: an inverted yield curve, a tumbling Tesla, and Uber's latest earnings. Details further down.
Here are the numbers from Wednesday 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 Thursday
- A busy day of earnings reports from the retail sector will be overshadowed by today's release of earnings from Uber Technologies Inc. (NASDAQ: UBER). The ride-sharing giant will report earnings for the first time since its IPO this month. Shares have declined by 4% since their debut, and investors are cautious about diving in. But ride-sharing could soar from a new technology that's bringing autonomous vehicles into the mainstream. Investors are flocking to this other emerging sector in wait of its imminent heyday.
- Oil prices are flat this morning as concerns about a trade war continue to rattle investors. Despite tightening supplies and a drop in inventories, oil prices remain subdued thanks to the Trump administration's battle against China. Brent crude will be off around 1%. Today, pay close attention to the weekly inventory update from the Energy Information Administration.
- This morning, banking stocks were pushing higher thanks to an uptick in the 10-year bond yield. The 10-year is currently sitting just north of its lowest level since September 2017. The recent market sell-off, fueled by concerns about a trade war between the United States and China, has led to an inverted yield curve. This phenomenon is usually an indicator that a recession is on the horizon.
Stocks to Watch Today: TSLA, DLTR
- Shares of Tesla Inc. (NASDAQ: TSLA) were off in pre-market hours after Barclay's Plc. (NYSE: BCS) said the "niche automaker" is stalling. The British investment bank slashed its price target for Tesla to $150 per share. That figure represents a potential decline of more than 20% from current levels. According to Bloomberg, CEO Elon Musk emailed employees that the company must catch up on deliveries "in order to have a successful quarter."
- Shares of Dollar Tree Inc. (NASDAQ: DLTR) fell more than 2.3% after the firm reported earnings Thursday. The discount retailer reported earnings per share well in-line with Wall Street expectations. However, Wall Street is continuing to take a bearish approach to U.S. retail due to the prospect of rising costs associated with Chinese tariffs.
- Look for additional earnings reports from Burlington Stores Inc. (NASDAQ: BURL), Canadian Solar Inc. (NASDAQ: CSIQ), Express Inc. (NASDAQ: EXPR), GameStop Corp. (NYSE: GME), Gap Inc. (NYSE: GPS), and Movado Group Inc. (NYSE: MOV).
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