Expect the Dow Jones today to sink again with investors still on edge about the Chinese yuan - and a generally volatile economic outlook for China's economy.
See other factors moving the DJIA (including a potential recession) below.
Plus: What's driving Uber Technologies Inc. (NYSE: UBER) down?
Here are the numbers from Thursday 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 Friday
- The White House claims that the United States is winning the trade war, but economists are more worried about the state of the American economy. According to a survey of economists by Reuters, the ongoing acceleration of a trade battle with China will likely bring a recession in the near future. Economists also anticipate that the Federal Reserve will cut rates at least one more time this year, and one more next year. The news is especially troubling for U.S. banking firms, which could see a dramatic drop in lending and interest fees. Roughly 45% of economists polled anticipate a recession by 2021.
- On the global front, China is dealing with a massive surge in food prices. According to the National Bureau of Statistics, China's food costs increased by 9.1% in July compared to the same period last year. China continues to avoid purchases of U.S. animal feed and pork products, which has forced it to rely on other nations. However, the ongoing swell in African Swine Flu has impacted pork prices, which have welled 29% in the last year. In addition, the agency reported a 39% jump in fresh fruit prices over the last year.
- Oil prices have ticked higher over the last 24 hours, thanks to increased stability in the Chinese yuan and expectations that OPEC will cut production once again. Saudi Arabia - the largest producer in OPEC - has reportedly called other cartel members to discuss the possibility of cutting more production to support international crude prices. Markets also continue to follow brewing tensions in the Strait of Hormuz after Iran recently seized another crude tanker and accused it of smuggling fuel.
Stocks to Watch Today: UBER, BPR, YRC
- Shares of Uber Technologies Inc. (NYSE: UBER) fell more than 6.2% after the firm reported a bigger loss than Wall Street had expected. The firm reported a net loss of $5.24 billion - or $4.72 per share - for the quarter ending June 30. The firm also fell short of revenue expectations after the bell Thursday. Uber is likely going to reduce its subsidies to attract news riders against competition. It's also been spending significant capital to bolster new technologies in self-driving vehicles and other lines of business such as food delivery.
- Brookfield Property REIT Inc. (NASDAQ: BPR) is a world-class REIT that operates under the banner of Brookfield Property Partners LP (NASDAQ: BPY), one of the premier global investors in commercial property. Here is why you could collect a 7% dividend and see shares pop 45% in the months ahead.
- Look for earnings reports from YRC Worldwide Inc. (NASDAQ: YRCW), Sequential Brands Group Inc. (NASDAQ: SQBG), Maiden Holdings Ltd. (NASDAQ: MHLD), US Concrete Inc. (NASDAQ: USCR), WABCO Holdings Inc. (NYSE: WBC), Tribune Co. (NASDAQ: TRCO), Consolidated Water Co. Ltd. (NASDAQ: CWCO), and E.W. Scripps Co. (NYSE: SSP).
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