Dow Jones Now Pulling Back as Markets Clamor for New Round of Stimulus Spending

The Dow Jones now is taking a dip as the number of COVID-19 cases tops 3.7 million.

Markets have enjoyed rallies in recent trading sessions from biotech stocks that are working on vaccines. Meanwhile, value stocks are getting attention from institutions. Here's everything moving the Dow today…

Let's start with the numbers from Friday for the Dow, S&P 500, and Nasdaq:

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

• This morning, the number of U.S. COVID-19 cases topped 3.7 million, with the death toll surpassing 140,500. In Florida, the state reported more than 10,000 new cases for the fifth consecutive day, and 49 hospitals across the state have run out of adult ICU beds. The median age for newly infected people is just 40 years old in Florida. The next hot spot on the U.S. map could be Ohio, which has seen its case figures rise sharply in recent days. On Sunday, the state's Republican Governor Mike DeWine warned that the state is "going the wrong way."

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• This is the last week for unemployed Americans to receive an additional $600 per week in benefits, barring new action from Congress. In Washington, D.C., pundits and activists alike are pushing Congress to get a new economic stimulus package signed by U.S. President Donald Trump quickly. However, there is a sharp divide on just how much more money that Congress should spend. Senate Majority Leader Mitch McConnell has floated a proposal worth a little more than $1 trillion. House Speaker Nancy Pelosi has already pushed a $3 trillion relief bill through the lower Chamber of Congress. Protests are scheduled Monday in New York to pressure the Senate to act quickly.
• Wall Street is extremely bullish on Amazon.com Inc. (NASDAQ: AMZN) stock. This morning, both Jeffries and Goldman Sachs Group Inc. (NYSE: GS) raised their price targets on the e-commerce giant to a staggering $3,800 per share. That figure represents a 28.2% premium to current AMZN stock and is the most bullish on Wall Street.

Stocks to Watch Today: HAL, LUV, DAL, NBL

• Shares of Halliburton Co. (NYSE: HAL) popped more than 5% after the company reported earnings. The oilfield services giant reported earnings per share of $0.05. Wall Street analysts had forecast a loss of $0.11 for the second quarter. However, the steep drop in oil prices during the second quarter weighed on revenue. This morning, the WTI oil price was sitting at $40.31, as oil has risen in recent weeks on optimism about a stronger recovery in the global economy than previous dire forecasts.
• The problems continue to mount in the airline industry. This morning, Southwest Airlines Co. (NYSE: LUV) announced that nearly 25% of its pilots have accepted deals to either retire early or take voluntary leave. That represents roughly 2,230 pilots, according to CNBC. Meanwhile, Delta Air Lines Inc. (NYSE: DAL) said that it is trying to avoid furloughs if the pilots accept a decline in their payment agreements.
• In deal news, Chevron Corp. (NYSE: CVX) announced plans to purchase Noble Energy Inc. (NYSE: NBL) in a $5 billion stock-swap deal. Shares of NBL added about 11.6% this morning. I've been talking about the likelihood that Chevron would use the downturn in prices to boost its oil shale holdings in the Permian Basin and Eagle Ford shale formation. This deal accomplishes both. This is also the largest oil patch deal since the start of the COVID-19 outbreak.

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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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