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The Dow Jones Industrial Average could gain back some of yesterday's losses after the Trump administration floated the possibility of a payroll tax cut. The plan is to ward off any negative economic impact from the coronavirus.
The news comes a day after the S&P 500 lost 7% and the Dow Jones shed more than 2,000 points in a single trading session. More of what's moving the Dow today, below.
Here are the numbers from Monday for the Dow, S&P 500, and Nasdaq:
|Index||Previous Close||Point Change||Percentage Change|
Now, here are the most important market events and stories that I'm following today.
The Top Stock Market Stories for Tuesday
- The Dow Jones experienced its worst one-day sell-off since the 2008 financial crisis on Monday. Meanwhile, U.S. indexes are on the verge of a bear market (a 20% reduction over a 52-week period). This morning, the Trump administration floated the possibility of a payroll tax cut and a few other stimulus ideas to help offset any downturn to the markets and economy by the ongoing threat of the coronavirus. That said, many economists are wondering if the U.S. economy would receive a boost if consumers stay at home and don't spend money during an outbreak.
- Oil prices are recovering slightly from their worst one-day downturn since the first Gulf War in 1991. WTI crude was up another 8% this morning but still remains firmly locked in bear market territory. Investors are very worried that debt-laden oil companies could face a reckoning this year due to their reliance on $50 per barrel or higher prices to meet their obligations. The downturn came after Saudi Arabia announced plans to slash prices and ramp up production. This came in response to Russia's decision to reject additional production cuts heading into April.
- Meanwhile, the ongoing 2020 primary season will continue with a number of states holding their contests for Democrats across the country. Michigan will be today's biggest prize with upwards of 125 delegates at play. Right now, former U.S. Vice President Joe Biden is leading in the polls in Michigan and appears poised to expand his lead over rival Sen. Bernie Sanders (I-VT). Today, other states participating include Idaho, Missouri, Mississippi, North Dakota, and Washington.
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Stocks to Watch Today: DAL, APA, OXY, DKS
- Shares of Delta Air Lines Inc. (NYSE: DAL) are up 4.5% despite news that the airline plans to slash additional flights as the coronavirus cuts into demand. The company's CEO also said this morning that it anticipates the slowdown in domestic travel will continue to drop.
- Oil stocks are rebounding this morning but still remain sharply lower from where they sat this time last week. On Monday, shares of Apache Corp. (NYSE: APA) fell 53.8%, while shares of Occidental Petroleum Corp. (NYSE: OXY) were off more than 52%. This morning, OXY stock is back up about 24%. That said, the debt-laden oil markets remain quite risky, and Saudi Arabia has hinted that it will keep prices low to gain back market share and hit U.S. production.
- Dicks Sporting Goods Inc. (NYSE: DKS) has announced plans to pull firearms out of 440 stores. Shares are pushing higher this morning after the company continues to move with its plan to reduce its hunting category in the wake of the Parkland, Fla., school shooting. Shares of DKS stock are up more than 12% after the company topped Wall Street earnings expectations as well.
- Look for earnings reports today from Tupperware Brands Corp. (NYSE: TUP), Clean Energy Fuels Corp. (NASDAQ: CLNE), Covia Holdings Corp. (NASDAQ: CVIA), and Vivint Solar Inc. (NASDAQ: VSLR).
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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.