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The Dow Jones today is gaining despite concerns about global trade and U.S. President Donald Trump's proposed tariffs on the European Union. More below.
Plus: See Trump's controversial pick for the Federal Reserve Board.
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
- The 10-year U.S. Treasury bond fell to its lowest level since 2016 as concerns about the global economy have started to accelerate. The U.S. bond fell to 1.95% a day after Germany's 10-year bond hit an all-time low. The 10-year bonds of Germany, Japan, and France are all in negative territory. Markets are increasingly concerned about a global recession in the months ahead and the prospect that central banks will need to slash rates further and introduce new stimulus measures. Investors look to major growth sectors for stability.
- On Tuesday, President Trump tweeted his plans to nominate Judy Shelton and St. Louis Fed economist Christopher Waller to the Federal Reserve Board. Shelton could be a controversial pick due to her outspoken criticism of the Federal Reserve and support of a return to the gold standard.
- Speaking of central banks, the European Central Bank will have a new sheriff to replace Mario Draghi in October. The ECB will appoint Christine Lagarde, a lawyer and leader of the International Monetary Fund since 2011. Lagarde was perhaps best known in her financial career for her time as France's finance minister during the 2008-2009 crisis. Lagarde will face a number of pressures as she enters her term at the helm. Negative interest rates continue to plague investors, the Brexit battle will stretch into the fall, inflation remains low, and President Trump continues to threaten the politicization of the U.S. central bank.
- Oil prices ticked higher Wednesday, thanks to another decline in U.S. inventory levels. According to the American Petroleum Institute, crude inventories fell by 5 million barrels, a larger drawdown than analysts had expected. The Energy Information Administration will release its official report on Wednesday. The uptick in crude prices comes a day after both WTI and Brent crude dropped more than 3.5% on concerns about the global economy. The downturn in prices was in spite of news that OPEC and its allies plan to extend production cuts through March 2020.
Stocks to Watch Today: TSLA, SYMC, AVGO
- Shares of Tesla Inc. (NASDAQ: TSLA) popped more than 7.4% in pre-market hours after the company reported record production and deliveries for the second quarter. The firm reported deliveries of 95,200 vehicles, breaking its previous record of 90,700 during the fourth quarter. This is a very positive development for TSLA, which has seen its shares fall by more than 30% for the year.
- Symantec Corp. (NASDAQ: SYMC) popped more than 22% on news that the cybersecurity giant may be a takeover target for Broadcom Inc. (NASDAQ: AVGO). And AVGO stock fell 5.4% on news that it could pay up to $15 billion in a deal. Symantec has struggled over the last two years, losing about 33% of its value during that time. The firm has been plagued by weak earnings and management turnover. CEO Greg Clark stepped down from his role in May. Meanwhile, this deal would be a major turning point for Broadcom, which failed to acquire rival chip manufacturer Qualcomm Inc. (NASDAQ: QCOM) in 2018. The Trump administration blocked that merger over concerns regarding national security.
- Look for an earnings report this morning from International Speedway Corp. (NASDAQ: ISCA).
WATCH: Silicon Valley Insider Makes Controversial Prediction That Could Make You $565,640
Michael Robinson has been a Silicon Valley insider for 35 years. He's been involved in some of the biggest tech breakthroughs of the last two decades, including the PC, the iPhone, and MEMS sensors. So he knows a little about the "Next Big Thing." However, his latest prediction is turning a lot of heads. Is he right? You decide. Go here.
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