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The Dow Jones Industrial Average will shrink back today after reports that 23 Americans have contracted coronavirus while aboard a cruise ship quarantined in Japan.
More on this below. Plus: eyes are on the central banks of the world as earnings season quiets down and global economic woes ramp up...
Here are the numbers from Friday for the Dow, S&P 500, and Nasdaq:
|Index||Previous Close||Point Change||Percentage Change|
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
- The global death toll for coronavirus topped 900 over the weekend, a figure that surpasses the toll from SARS last decade. China has pledged $10 billion to fight the outbreak after the number of cases surpassed 40,000. The mounting number of cases has strained local hospital systems across China. The nation's health officials have warned about shortages in medical supplies and equipment. China has closed schools across the Hebei province, which surrounds Beijing, until at least March 1 as the virus spreads. China's central bank has continued to bolster liquidity through a stream of reverse-repurchase agreements.
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- Oil prices continue to slump on concerns about weak global demand and the coronavirus. WTI crude slumped more than 20% from January highs on news that the world's largest import market could see prolonged economic weakness due to the spread of the deadly virus. Markets are looking for OPEC to slash output further in order to provide a floor for crude prices. WTI was back under $50 for a brief period this morning as traders weigh the reality that further OPEC cuts may not be enough to completely balance supply and demand across the globe.
- This week will be critical for central banks around the globe. On Tuesday, U.S. Federal Reserve Chair Jerome Powell will offer his semiannual testimony before Congress. Meanwhile, ECB President Christine Lagarde will speak Tuesday before the European Parliament. With interest rates falling around the globe, investors are looking for any clues about a central bank plan to stave off global economic woes.
Stocks to Watch Today: LB, SPG, TCO, MAT
- Shares of L Brands Inc. (NYSE: LB) are up more than 7.1% on news that the company will sell its Victoria's Secret brand to private equity giant Sycamore Partners. The deal comes amid mounting pressure against CEO Leslie Wexner, who has faced criticism for his relationship with the late Jeffrey Epstein.
- In deal news, Simon Property Group Inc. (NYSE: SPG) announced plans to take an 80% stake in Taubman Centers Inc. (NYSE: TCO) for $52 per share. That price represents a 49% premium to Friday's closing price. The all-cash deal is valued at roughly $3.6 billion. Reports state that Taubman's executive team will still manage the properties.
- Finally, Mattel Inc. (NYSE: MAT) announced that it will shutter two factories in Asia and close another location in Canada. The firm said it plans to streamline its supply chain with a heavy emphasis on its manufacturing facilities.
- Look for an earnings report from Callaway Golf Co. (NYSE: ELY), Diamond Offshore Drilling Inc. (NYSE: DO), Watts Water Technologies Inc. (NYSE: WTS), RingCentral Inc. (NASDAQ: RNG), Allergan Plc. (NYSE: AGN), and Restaurant Brands International Inc. (NYSE: QSR).
America's 1% Are Converging on the Next "Gold Rush"
The Fortune 500, big investment firms, and the Wall Street elite are all pouring billions into a new agribusiness market.
It's an investment strategy that's already worked for them before - for example...
Vanguard, Credit Suisse, and RBC were behind an IPO in this industry that shot up 659% in under one year...
Deutsche Bank and UBS were behind the scenes of a 641% windfall...
And Goldman Sachs, Black Rock, and Morgan Stanley lined their pockets with a whopping 3,813% profit...
But the biggest gains are yet to come. As medical research in this area trucks on, this could become a $1 trillion global industry. Individual investors could become millionaires practically overnight.
I know the numbers are big, but the research backs it up.
What's more, we've picked three stocks in this industry with the biggest upside potential.
About the Author
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.