The Dow Jones Industrial Average is down today as investors worry the Federal Reserve will not cut interest rates at the end of the month.
Plus: How desperate is Deutsche Bank AG (NYSE: DB)? More below.
Here are the numbers from Friday for the Dow, S&P 500, and Nasdaq:
Index
Previous Close
Point Change
Percentage Change
Dow Jones
26,922.12
-43.88
-0.16
S&P 500
2,990.41
-5.41
-0.18
Nasdaq
8,161.79
-8.44
-0.10
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 Monday
The markets are again focused on the Federal Reserve and its plan on interest rates. Friday's jobs report showed that the U.S. economy added 224,000 new positions in June, a figure that easily topped analyst expectations. Traders were all certain the U.S. central bank would cut rates later this month, but expectations are starting to pull back. This week, Federal Reserve Chair Jerome Powell will testify before Congress on the state of the U.S. economy. His statements could easily make or break the recent market rally.
Over the weekend, a stunning development emerged in Europe. Deutsche Bank AG (NYSE: DB), Germany's largest financial institution, announced plans to cut 18,000 jobs, depart the global equities business, and overhaul operations as it struggles to survive and reinvent itself. DB stock is off 3.1% in pre-market hours.
Oil prices will stay flat as investors continue to monitor ongoing geopolitical risks around the globe. Central banks around the world are considering additional stimulus for their economies. Growing concerns about global growth have led most analysts to believe that demand will face a "cap," a factor that would override positive sentiment around OPEC's decision to cap production through March 2020.
Stocks to Watch Today: VZ, C, AAPL
Shares of Verizon Communications Inc. (NYSE: VZ) dipped 1% in pre-market hours after the telecom giant received a downgrade from Citigroup Inc. (NYSE: C). The investment bank raised concerns about the firm's ability to grow in the year ahead. This was due to "long-term industry risks" and its massive valuation, which the bank said would limit share price upside.
Apple Inc. (NASDAQ: AAPL) shares dropped another 1.5% in pre-market hours after the global tech giant received a downgrade from investment firm Rosenblatt. The firm rated Apple a "sell" with a price target of just $150. The primary shift in opinion centered on an expected deterioration in the tech giant's services business over the next six to 12 months.
Look for an earnings report from AZZ Inc. (NYSE: AZZ).
WATCH: Silicon Valley Insider Makes Controversial Prediction That Could Make You $565,640
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