Why the Dow Jones Today Is on the Rebound

The Dow Jones today is recovering from the brutal May sell-off on news that the U.S. Federal Reserve plans to explore monetary policy options if the trade war accelerates. Details below.

Also: further antitrust developments in Silicon Valley moving the DJIA.

Here are the numbers from Tuesday for the Dow, S&P 500, and Nasdaq:

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

• Markets rallied Tuesday thanks to increased optimism that the Federal Reserve would provide support to the U.S. economy if it struggled. During a speech Wednesday, Fed Chair Jerome Powell indicated that the central bank would slash its benchmark rate if the U.S. economy weakened due to tariffs and trade disputes. But the American markets might not need intervention if they get the timely boost expected from this catalyst.

• Oil prices dipped again Wednesday on news of a supply build across the United States. WTI crude slipped 0.75%, while Brent crude fell 0.1%. Yesterday, the American Petroleum Institute reported an uptick in both oil and gasoline stocks. Around the globe, oil prices have dipped thanks to ongoing concerns about global demand in the face of trade disputes between the United States and several of its key trade partners.
• Speaking of demand, the International Monetary Fund said that the trade war between the United States and China has already taken a significant toll on the latter's economy. The IMF slashed its 2019 economic growth outlook for China from 6.3% to 6.2%, and it predicts that China's economy will grow by just 5.5% in 2024. U.S. Treasury Secretary Steven Mnuchin and People's Bank of China Governor Yi Gang are set to meet this weekend. However, no further trade discussions have been scheduled, and no news indicates that U.S. President Donald Trump and China's Xi Jinping will meet during the G-20 meeting scheduled in Japan later this month.

Stocks to Watch Today: CRM, GOOGL, AAPL

• In earnings news, shares of Salesforce.com Inc. (NYSE: CRM) gained 4.6% after the sales automation giant topped Wall Street earnings expectations on Tuesday. The company reported strong first-quarter earnings and raised its full-year outlook.
• Apple Inc. (NASDAQ: AAPL) CEO Tim Cook declared that the iPhone maker is not a monopoly during an interview with CBS. The United States government may disagree as it prepares to explore anti-trust measures against several of Silicon Valley's largest technology giants. AAPL stock was up 1.7% in pre-market hours.
• Shares of Alphabet Inc. (NASDAQ: GOOGL) are trying to bounce out of bear territory after Monday's stunning downturn. Bear conditions come just five weeks after its stock hit a record high. Investors remained highly concerned that the U.S. Justice Department may launch an investigation into alleged antitrust violations centered around its search business.
• Today, look for more earnings reports from Stitch Fix Inc. (NASDAQ: SFIX), Cloudera Inc. (NASDAQ: CLDR), Five Below Inc. (NASDAQ: FIVE), Campbell Soup Co. (NYSE: CPB), and American Eagle Outfitters (NYSE: AEO).

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