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The Dow Jones will have another volatile day in the wake of several protests happening around the country. It gained more than 140 points at the starting bell, but it's sure to fluctuate with a fast-changing news cycle...
We're also dealing with a pandemic and a trade war with China. More on these stories moving the Dow, below...
First, the numbers from Monday for the Dow, S&P 500, and Nasdaq:
|Index||Previous Close||Point Change||Percentage Change|
Here are the most important market events and the stories that I'm following right now.
The Top Stock Market Stories for Tuesday
- On Tuesday, the big question centers on whether the ongoing protests across the country over the killing of George Floyd will set back state reopening plans in the wake of COVID-19. This comes on the heels of U.S. President Donald Trump's recent threats to deploy the U.S. military if mayors and governors fail to control the spiraling unrest across the United States.
- Oil prices bounced back on Tuesday morning on growing optimism about the latest OPEC+ meeting. Major global producers are expected to extend additional production cuts in order to help support oil prices, which are still off about 40% since the start of the year. Members of OPEC and other key producers plan to extend their production cuts of 9.7 million barrels per day - a figure that represents about 10% of global output - through at least July. Despite the optimism around the deal's extension, crude prices remain suppressed thanks to ongoing geopolitical tensions between the world's two largest economies - the United States and China.
- Let's talk the latest on COVID-19. Johns Hopkins University said that U.S. cases topped 1.81 million, with the number of deaths rising above 105,000. On Tuesday, the Congressional Budget Office said that the impact on U.S. economic growth will be quite staggering. The CBO projects that the virus will cut U.S. GDP growth by $7.9 trillion, or 3%, through 2030. Democrats argue that this figure justifies greater pandemic funding across the country.
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Stocks to Watch Today: FB, DKS, AAPL
- Facebook Inc. (NASDAQ: FB) is facing pressure after hundreds of employees staged a virtual walkout Monday over the social media platform's policy on messages sent by President Trump. Employees are upset that CEO Mark Zuckerberg and other leaders decided to leave up a post from last week, in which Trump wrote "when the looting starts, the shooting starts" in reference to the ongoing U.S. protests. Zuckerberg plans to hold a company-wide town hall meeting today to speak to employees about its policy.
- In earnings news, Dicks Sporting Goods Inc. (NYSE: DKS) reported a huge loss compared to Wall Street estimates. The company reported an EPS loss of $1.71 for the first quarter. Analysts had expected a loss of -$0.57. The sports retailer took a big hit due to store closures tied to COVID-19. That said, the company did report a 110% increase in e-commerce sales during the first quarter. It also projected a solid Q2 start.
- Finally, Apple Inc. (NASDAQ: AAPL) is slashing iPhone prices in China. The company hopes to continue strong sales with the Chinese economy reopening after COVID-19 lockdowns and store closures. Apple remains in focus after China recently threatened to investigate Apple over unfair trade practices in retaliation to U.S. threats against state-owned Huawei.
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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.