The Dow Jones Industrial Average will correct slightly today after a big surge through the holidays. A Santa Claus rally already pushed the S&P 500 up more than 29% since the start of 2019. Today, the major indexes are reining in some of those gains.
But this is only a temporary slide. With increased optimism over trade and economic indicators, investors expect further growth going into a new decade. More on what's driving the Dow today below.
First, here are the numbers from Friday for the Dow, S&P 500, and Nasdaq:
Index
Previous Close
Point Change
Percentage Change
Dow Jones
28,645.26
+23.87
+0.08
S&P 500
3,240.02
+0.11
0.00
Nasdaq
9,006.62
-15.77
-0.17
Now here are what I think will be the most important market events and stocks on Monday morning.
The Top Stock Market Stories for Monday
First up, the markets continue to monitor the state of trade relations between the United States and China. The "phase one" deal between the U.S. and China this month has restored optimism that a broader deal is coming in the near future. That said, political tensions remain high in Washington, where U.S. President Donald Trump continues to spar with Democrats over their recent impeachment vote.
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Investors are also eyeing economic data this morning. Although the Dow and S&P 500 sit at record levels, the numbers around U.S. manufacturing aren't looking too great. The average expectation for the December reading of the Chicago purchasing manager index is set at 47.4. While that would be an improvement from the 46.3 in November, any reading under 50 signals a contraction for U.S. manufacturing.
Silver prices pulled back slightly this morning, creating a possible buying situation for investors. Over the last 12 months, the price of silver is up a remarkable 16%. Since its lows of early 2016, the metal has gained an impressive 42% so far. But there could be even greater returns on the horizon. Here's the latest 2020 silver forecast from Peter Krauth, our resource specialist.
Stocks to Watch Today: TSLA, DIS
Shares of Tesla Inc. (NASDAQ: TSLA) are in focus for two reasons on Monday. First, the company delivered its first Model 3 sedan manufactured at its Shanghai facility. The company plans to increase its output starting next month. Second, CEO Elon Musk has said that his Boring Company could have its first tunnel created in Las Vegas next year. Musk has built another company around underground tunnels in major cities to reduce traffic congestion. Shares continue to rally as more analysts raise price targets.
Shares of Walt Disney Co. (NYSE: DIS) are in focus as the company counts its money from the release of "Star Wars: The Rise of Skywalker." The film topped box-office returns for the second consecutive week. For the week, the film pulled in about $72 million. The film is expected to bring in more than $1 billion around the globe. In 2019, Disney had six movies reach that incredible figure. In addition, the company alone accounted for about 40% of total box office sales this year.
No major U.S. companies report earnings on Monday.
Illinois Becomes the 11th State to Legalize Cannabis (Making More People Rich)
Cannabis laws are being reformed en masse: Illinois has not only become the 11th - and second largest - state to legalize marijuana, but the first to do so by way of state legislation.
That means the medical, personal, and economic benefits of "America's Green Gold Rush" are appealing to Republicans and Democrats alike.
One cannabis research executive is hailing Illinois the "Marijuana Mecca of the Midwest," a hallmark of the rising uncapped profit potential ahead.
Once the feds end cannabis prohibition nationwide, all bets will be off - demand will boost share prices through the roof. But you can still get in on the ground floor, just in time for what could be the windfall of the century.
Illinois is already housing some of our top picks in the industry, so a few of our favorite stocks could get yet another boost.
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.