The Dow Jones Slumps as Oil Continues Its Historic Sell-Off

The Dow Jones is down another 400 points as oil markets continue their sell-off from Monday's historic downturn.

Today will be another important day of earnings reports from blue-chip companies like Coca-Cola Co. (NYSE: KO), Netflix Inc. (NASDAQ: NFLX), and Chipotle Mexican Grill Inc. (NYSE: CMG). Here's all that's moving the Dow today…

First, here are the numbers from Monday for the Dow, S&P 500, and Nasdaq:

Now, here are the most important market events and the stories that I'm following today.

The Top Stock Market Stories for Tuesday

• On Monday, oil futures fell into negative territory for the first time in market history. With expiration taking place today, producers were forced to pay traders to take crude off their hands at the delivery point at Cushing, Okla. Crude for May delivery fell to negative $37.63 per barrel. This morning, the June contract fell 24% to $15.50, while the Brent crude contract shed nearly 19%.

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• Is Kim Jong Un alive? That is the question that the U.S. media cannot answer. Last night, NBC reported that the North Korean dictator was "brain dead" after a heart surgery. However, other reports conflicted that story and suggested that he had contracted COVID-19 from a Chinese doctor and has since recovered.
• The U.S. Senate is poised to pass a new small business relief bill on Tuesday. Senate Minority Leader Chuck Schumer suggested that a new bill would pass the Upper Chamber of Congress later this afternoon. The bill would likely add hundreds of billions in new loan capital for small businesses struggling with the impact of COVID-19.

Stocks to Watch Today: IBM, KO, SBUX, BYND

• Shares of International Business Machines Corp. (NYSE: IBM) fell by more than 3% after the company reported earnings Tuesday. Coronavirus has taken a bite out of revenue figures, with total revenue coming in at $17.57 billion. That figure represented a 3.4% drop, year over year.
• Shares of Coca-Cola Co. (NYSE: KO) fell slightly after the firm reported earnings before the bell. The firm said that quarterly EPS came in at $0.51, a figure that topped estimates by $0.07. The iconic company also beat revenue expectations thanks to a shift in consumer habits tied to COVID-19. The firm said it anticipates a stronger second half in 2020 as the virus dissipates.
• Starbucks Corp. (NASDAQ: SBUX) announced it will unveil a new produce from Beyond Meat Inc. (NASDAQ: BYND) on its menu in China. The partnership represents the alternative meat company's entry into the second largest economy in the world. Starbucks recently reopened about 95% if its locations in China in the wake of the pandemic. The company also announced that it will start offering Oatly's oat milk as a non-dairy substitute for its Chinese customers.

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Garrett Baldwin

About the Author

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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.

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