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The Dow Jones is tumbling as crude prices drop 40%.
Last week, the S&P 500, Dow Jones, and Nasdaq all gained more than 2%. This morning, however, investors are reacting to the ongoing oil crisis. More on what's moving the Dow Jones today below.
First, 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
- Oil prices fell for the seventh straight week on Friday, and we are starting week eight of the skid. WTI crude oil fell nearly 40% on Monday morning from concerns about the ongoing glut of crude and the economic downturn fueled by coronavirus. WTI fell under $15 for the first time since 1999 and traced down to around $12 per barrel due to fears that we have run out of storage for U.S. crude. The Trump administration has considered paying U.S. producers to keep oil in the ground in order to help support domestic prices.
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- On Sunday night, the U.S. Senate was negotiating a deal that would provide another $310 billion to the Paycheck Protection Program. The news comes a week after the existing program ran out of money due to incredible demand for small business loans during the coronavirus outbreak. Democrats are seeking more money for federal testing, hospitals, and local governments to combat the crisis. Once a bill passes, the House of Representatives could take up a vote as soon as Wednesday.
- Despite recent rallies in the market, the number of Americans seeking unemployment benefits continues to rise. Roughly 22 million jobs have been lost in a month, according to the U.S. Department of Labor. Meanwhile, the number of global coronavirus cases surged above 2.39 million, with nearly 165,000 deaths due to the outbreak. The United States now has more than 755,000 official cases. U.S. President Donald Trump has announced that he has invoked the Defense Production Act to increase swab production as the United States faces a shortage.
Stocks to Watch Today: UAL, HAL
- United Airlines Holdings Inc. (NYSE: UAL) announced that it has struck a deal to sell and lease back 22 of its aircraft with the Bank of China Aviation. The deal will allow United to conserve cash at a time that it is facing increased losses due to the massive downturn in global travel. However, the deal does raise concerns about China's ability to obtain assets from American companies during this difficult economic environment. UAL shares are off more than 6.5% as the company will likely seek additional bailout money from the U.S. government.
- Shares of Halliburton Co. (NYSE: HAL) were off 7.4% this morning after the company reported quarterly earnings. The oilfield services giant reported earnings per share for the March ending quarter at $0.31. That figure beat estimates by $0.07. The firm also topped revenue expectations. That said, the firm expects a remarkable downturn in activity this coming quarter due to the massive oversupply of U.S. crude.
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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.