The Dow Jones today will try to recoup from its ugliest week of the year. Sell-offs were pushed by an inverted yield curve, a signal which has always preceded recession.
As investors look to step in and buy major U.S. companies on the cheap, the question remains, of course, whether the worst of the downturn is over. Read on for details.
Here are the numbers from Thursday for the Dow, S&P 500, and Nasdaq:
Index
Previous Close
Point Change
Percentage Change
Dow Jones
25,579.39
+99.97
+0.39
S&P 500
2,847.60
+7.00
+0.25
Nasdaq
7,766.62
-7.32
-0.09
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 U.S. 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. Now, hedge fund managers are starting to raise the prospect of even more pain for the U.S. economy. On Thursday, Bridgewater founder Ray Dalio warned that there was a 40% chance the U.S. economy falls into recession in 2020.
Treasury bonds continue to plummet. This morning, the 10-year Treasury bond fell under 1.5%, while the 30-year bond hit an all-time low. Markets are fleeing to U.S. bonds as the prospect of a market downturn and recession continue to rattle sentiment.
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Oil prices were ticking a bit higher this morning as markets responded positively to monthly retail sales. As concerns about a potential recession hit investors, oil has been in a free fall. However, the 0.7% uptick in retail sales in July added a little support to global crude prices. Traders are also hoping that OPEC's upcoming decision on crude production could help reduce the ongoing fret around the U.S. Treasury yield curve inversion.
Stocks to Watch Today: GE, DIS, CSCO
Shares of General Electric Co. (NYSE: GE) slumped more than 10% on Thursday after the man who warned about Bernie Madoff accused the firm of engaging in accounting fraud. The whistleblower, Harry Markopolos, accused General Electric of "a bigger fraud than Enron" in a 175-page report released yesterday. He also accused the company of engaging in fraud dating back to 1995. GE's CEO, Lawrence Culp, responded with a terse denial. He also proceeded to purchase $2 million in GE stock after the release of the report.
Walt Disney Co. (NYSE: DIS) is in rarefied air this year. The company operates the first film studio to launch five $1 billion movies in a single year. The achievement received credit after Toy Story 4 hit the 10-figure level this week. The news comes as the firm plans to release its long-awaited streaming service Disney+ later this year.
Cisco Systems Inc. (NASDAQ: CSCO) plunged more than 8% after the company issued a dire revenue forecast. Investors are extremely concerned that 5G won't be able to save the company as it continues a path of trying to lead the market in next-generation technology.
Look for earnings reports from Deere & Co. (NYSE: DE) and Nordic American Tankers Ltd. (NYSE: NAT) today.
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