The Dow Jones Industrial Average Gains over 100 Points on China-U.S. Trade Deal

The Dow Jones today will continue to rise as investors digest a "phase one" trade deal between the United States and China. U.S. Treasury Secretary Steven Mnuchin said that the two sides will officially sign the deal in January.

But that's not the only thing moving the Dow today. A few other factors have jumped on the radar this morning.

We'll start with the numbers from Friday 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 Monday

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  The Trump administration and China have reached a "phase one" deal on trade. The decision ends more than a year of turmoil for the markets that produced massive levels of uncertainty and waning economic growth. Although there remains a number of questions around agricultural trade, the American trade deficit with China, and more questions about what comes next, this deal is a positive step after repeated delays.

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• Investors are paying close attention to developments out of Great Britain. Last week, Prime Minister Boris Johnson won a clear majority in the country's snap election. Johnson has promised to "get Brexit done" and will aim to have a deal in place for the United Kingdom to exit the world's largest economic bloc by Jan. 31. Johnson's conservative government will attempt to pass a new Brexit deal before the Christmas holiday.
• U.S. oil prices hit a three-month high after news of the U.S.-China trade deal. Brent crude pushed up $0.17 to hit $65.39 per barrel. Meanwhile, U.S. crude added $0.10 to hit $60.17 per barrel. Markets are still waiting for additional details, but investors are cheering the news that the United States will not hit China with additional tariffs of $160 billion in new Chinese goods. That said, investors are somewhat concerned about stagnating oil demand out of China. The nation only expects its economy to grow by 6% in 2020. That figure is down from forecasts of 6.5% this year.

Stocks to Watch Today: BA, HEI, DIS, IFF, DD

• Shares of Boeing Co. (NYSE: BA) are in focus after news that the aviation giant may slash or outright halt production of the 737 Max jet. The news comes after the U.S. Federal Aviation Administration announced that it will not support or approve Boeing's return to service for the jet before 2020. The jet remains grounded after two deadly crashes. According to reports, the company's board of directors took up the subject during a meeting that kicked off in Chicago on Sunday.
• Shares of the Walt Disney Co. (NYSE: DIS) are moving higher after the entertainment giant saw its film, "Frozen II," top the $1 billion mark in revenue. The record-breaking year for Disney has it on pace to become the very first studio to ever reach $10 billion at the box office in one year. "Frozen II" was Disney's sixth movie to generate more than $1 billion this year. The company still has one more film that could reach that level when "Star Wars: The Rise of Skywalker" launches later this week.
• In deal news, International Flavors & Fragrances Inc. (NYSE: IFF) announced plans to merge with the nutrition and bioscience arm of DuPont de Nemours Inc. (NYSE: DD). The deal will reportedly create a massive consumer-facing company with a valuation topping $45 billion. DD stock was up this morning, while IFF stock dropped 6% in pre-market hours.
• Look for an earnings report from HEICO Corp. (NYSE: HEI).

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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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