The Dow Jones Today Is Climbing on U.S.-China Trade Optimism

Garrett Baldwin

The Dow Jones today is ticking higher as investors remain optimistic the United States and China will find a resolution at next month's meeting.

Meanwhile, I'm watching oil and U.S. bond prices going into the second half of the week. Read on to see how this is moving the Dow Jones Industrial Average.

First, here are the numbers from Tuesday 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 Wednesday

• The markets have 91.2% priced in an interest rate cut in September. The Federal Reserve is meeting next week to discuss the state of the U.S. economy and monetary policy. U.S. President Donald Trump took to social media to call out Federal Reserve Chair Jerome Powell and urge that the U.S. central bank adopt negative interest rates. Trump argued that negative rates would save the government money on its debt and place it in line with European economies that have adopted said rates. My take: It's not a good idea to encourage negative interest rates. It's a bad idea for anyone living on a fixed income, and it is completely uncharted territory for the global markets.

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• According to the American Chamber of Commerce, U.S. companies are turning away from China as a hub for manufacturing. American companies, in an effort to avoid tariffs and reduce costs, are turning to countries like Vietnam as a new center for their production. As the trade battle between the United States and China extends, expect to hear a lot more about American companies leaving China. The trend has the potential to impact China's economic growth and sour relations further with the United States.
• Oil prices ticked higher Wednesday morning thanks to a drop in U.S. inventory levels. WTI crude prices sat just short of $58 per barrel and now sit up nearly 7% this month. Traders have cheered news that OPEC will continue its production cuts despite weaker demand projections, due to the ongoing trade war. OPEC is reportedly considering cuts of up to 1.8 million barrels per day to help bolster crude prices.

Stocks to Watch Today: TLRD, SCHW, GME

• Things went from bad to worse for shares of GameStop Corp. (NYSE: GME). Shares tanked more than 16% after a dismal earnings report on Tuesday afternoon. The video game retailer reported a quarterly loss of $0.32, a figure that missed analysts' expectations by $0.11. The firm also fell short on revenue and slashed its 2019 sales forecast.
• Shares of Charles Schwab Corp. (NYSE: SCHW) announced that it plans to cut 600 jobs from its active workforce. That figure represents about 3% of its employee base. The discount broker predicts tough times in the face of falling interest rates.
• Look for earnings reports from Tailored Brands Inc. (NASDAQ: TLRD), Eros International Plc. (NASDAQ: EROS), and Oxford Industries Inc. (NYSE: OXM).

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Garrett Baldwin

About the Author

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Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.

Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.

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