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Expect the Dow Jones Industrial Average to take a loss today, correcting for a six-day market rally on U.S.-Mexico trade news. But U.S. relations with China still hang in the balance...
More moving the Dow today: Tesla Inc. (NASDAQ: TSLA) saw a jump. But can it really bounce back? 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
- According to a recent survey from Duke University, corporate leaders are increasingly concerned about a recession hitting the United States. A survey of CFOs showed that 48.1% of respondents expect the U.S. economy to fall into a recession by next year, just in time for the 2020 election cycle. CFOs are anticipating a pullback due to ongoing geopolitical and economic uncertainty - including trade wars and uncertainty over monetary and fiscal policy. Investors are flooding an increasingly profitable tech sector in response.
- On Tuesday, U.S. President Donald Trump said he was holding up a trade deal with China. He said he wasn't interested in striking a deal unless China agreed on five "major points," although there wasn't any specification on the matter. One can assume these points include technology transfers, currency manipulation, and agricultural purchases, based on previous statements by the president.
- On the global front, ongoing protests in Hong Kong continue to rattle Asia-Pacific markets. More than 1 million people recently protested a controversial extradition bill that would allow China to extradite political dissidents from Hong Kong. To put that figure into perspective, Hong Kong has a population of roughly 7 million people.
Stocks to Watch Today: TSLA, LULU, CVX
- Shares of Tesla Inc. (NASDAQ: TSLA) stock jumped nearly 4% in pre-market hours after the stock rallied in the wake of its Tuesday shareholder meeting. Investors appeared pleased by CEO Elon Musk's statements saying TSLA had a "decent shot" at a record quarter. Musk also spent a lot of time addressing concerns about delays to shipments and demand for electric vehicles.
- Lululemon Athletica Inc. (NASDAQ: LULU) will report earnings on Wednesday. Shares of the athletic apparel maker are up roughly 40% in 2019, well above the average industry increase of 15% and the 12% returned by Nike Inc. (NYSE: NKE). Wall Street expects that quarterly revenue will pop 16.5% and hit $757.1 million. Analysts also anticipate that first-quarter earnings will jump 29% to hit $0.71.
- Shares of Chevron Corp. (NYSE: CVX) were off 1.2% in pre-market hours after the Energy Information Administration lowered its 2019 forecast for global oil prices. The report indicated that global demand would decline, which hit oil prices in the pre-market hours. WTI crude oil prices dipped 2.8%, while Brent crude was off 2.7%.
- Today, look for more earnings reports from Restoration Hardware Holdings Inc. (NYSE: RH), Tailored Brands Inc. (NASDAQ: TLRD), Oxford Industries Inc. (NYSE: OXM), and Culp Inc. (NASDAQ: CULP).
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