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The Dow Jones Industrial Average is up this morning as investors weigh today's impeachment vote in Washington, D.C. Reports indicate that the Democrats in the U.S. House of Representatives have the votes to impeach U.S. President Donald Trump. But the odds of his removal by the U.S. Senate are virtually 0%.
More on this below. Plus: Find out why FedEx Corp. (NYSE: FDX) is down more than 9% today...
Here are the numbers from Tuesday for the Dow, S&P 500, and Nasdaq:
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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
- This morning, markets are up on the likelihood that the House of Representatives will vote to impeach President Trump. Trump would be the third president to be formally impeached should Democrats reach a simple majority. That said, Trump is going down on this vote swinging. On Tuesday, he sent a letter to Speaker of the House Nancy Pelosi calling the impeachment process an "illegal, partisan attempted coup." Americans remain largely divided on the issue. While most Democrats support impeachment, and Republicans oppose it, the most important number surrounds independents. That group disapproves of impeachment by a 46% to 41% margin, and that spread could be critical come the 2020 election.
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- While Congress is busy on impeachment, most Americans are missing out on major developments around actual policy. The House of Representatives has approved a massive appropriations bill to keep the lights on in Congress. The new spending package is set to reach $1.4 billion and will include money for President Trump's long-promised border fencing. The new bill does contain a number of additional provisions, such as a rule that prohibits cigarette sales to individuals under 21. On Thursday, a day after the Impeachment vote, the House of Representatives will vote on the new trade deal to replace NAFTA.
- Finally, while the impeachment circus swirls and distractions mount, Wall Street expects President Trump will be reelected in 2020. The focus for 2020 and beyond appears to be economic policy, and the predictions are that Trump will move to accomplish whatever he wants in a second term. That could mean, according to some analysts, additional trade disputes, additional tax cuts, the firing of Jerome Powell as Federal Reserve Chair, or even an unexpected change to real estate laws.
Stocks to Watch Today:
- Shares of FedEx Corp. (NYSE: FDX) were off more than 7.5% this morning after the shipping giant fell well short of earnings expectations. FedEx also slashed its 2020 profit forecasts due to rising costs and its cutting ties with Amazon.com Inc. (NASDAQ: AMZN). The firm reported earnings per share of $2.51, well below the consensus forecast of $2.76. Revenue was also below expectations.
- Now that Amazon.com is no longer working with FedEx, the firm must find additional companies to help it ship packages across the country. The firm is turning to discount airliner Sun Country to help it haul packages during non-peak airline periods. Sun Country is owned by private equity giant Apollo Global Management Inc. (NYSE: APO). Sun Country will begin its shipping program in Q2 and boost its roster of pilots.
- Shares of PG&E Corp. (NYSE: PCG) popped 10.5% after the company reached a settlement over the deadly wildfires in California. A U.S. bankruptcy judge approved a $13.5 billion settlement after a six-hour hearing. It also reached an $11 billion agreement with insurance organizations.
- Look for earnings reports from Micron Technology Inc. (NASDAQ: MU), Paychex Inc. (NASDAQ: PAYX), General Mills Inc. (NYSE: GIS), Herman Miller Inc. (NASDAQ: MLHR), and Toro Co. (NYSE: TTC).
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About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.