Why the Dow Jones Industrial Average Could Lose 200 Points Today (Friday)

The Dow Jones Industrial Average is headed downward after China announced new tariffs on another $75 billion in U.S. goods.

The list of products that face additional levies includes automobiles and parts. China's State Council said that tariffs will go into effect on Sept. 1 and increase on Dec. 15.

But there is much else moving the DJIA today...

Here are the numbers from Thursday for the Dow, S&P 500, and Nasdaq:

Index Previous Close Point Change Percentage Change
Dow Jones 26,252.24 +49.51 +0.19
S&P 500 2,922.95 -1.48 -0.05
Nasdaq 7,991.39 -28.82 -0.36

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

Fed Chair Jerome Powell is offering his thoughts today in the wake of the Fed's annual symposium. His speech comes at a historical moment for the Federal Reserve. Not only has the White House openly sought to politicize the U.S. central bank, but the bank itself is divided among members who want to continue lowering rates and those who feel the July rate cut was unnecessary. Today's trading session could get really bumpy if the Fed fails to signal that it will continue lowering rates. The markets have priced in a 90% probability that the central bank will cut rates in the month ahead.

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  • The Trump administration is considering another tax cut ahead of the 2020 election. After a week of White House denials that U.S. President Donald Trump sought to shore up the American economy, the president's top economic advisor said Thursday that a cut on payroll taxes and other taxes could be on the table.
  • Oil prices cratered again Friday morning after China announced its latest round of tariffs on the U.S. economy. WTI crude slumped 3.2%, while Brent crude dropped 2.5%. The fluctuation of crude prices is enough to make traders want to wash their hands of this market. Crude prices were on track for higher prices thanks to optimism about OPEC cuts and falling inventory levels in the United States. However, ongoing concerns about a global economic slowdown and an escalating trade war have weighed on sentiment.

Stocks to Watch Today: GM, F, FB, HAS, ENTMF

  • Shares of General Motors Co. (NYSE: GM) and Ford Motor Co. (NYSE: F) are down after China announced plans to add the new tariffs. China's leaders said they had no choice when deciding to retaliate on President Trump's latest round of tariffs against the Chinese economy.
  • Facebook Inc. (NASDAQ: FB) faces new criticism over data security challenges this morning. New documents reveal that the social media giant knew about the Cambridge Analytica breach as early as September 2015. The company had used Facebook user data to target, profile, and influence voters during the 2016 election.
  • In deal news, Hasbro Inc. (NYSE: HAS) announced it has purchased the Canadian company behind Peppa Pig, the iconic children's character. Hasbro's $4 billion deal for entertainment giant eOne expands the company's push into products and entertainment for preschool-aged children. Shares of eOne (OTCMKTS: ENTMF) jumped 35% on the news. Hasbro's deal is part of a larger rebranding effort to recapture market share and boost its customer base in the wake of the Toys R Us bankruptcy, a store where many of its products were sold.
  • Look for earnings reports from Foot Locker Inc. (NYSE: FL), Hibbett Sports Inc. (NASDAQ: HIBB), Red Robin Gourmet Burgers Inc. (NASDAQ: RRGB), Meredith Corp. (NYSE: MDP), and Buckle Inc. (NYSE: BKE).

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