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The Dow Jones is continuing its slow march back toward its record highs as it starts the day in positive territory again. The S&P 500 is now nearly even with levels where it started on Jan. 1.
A fresh slate of earnings reports has investors eager to get in on the action, while vaccine optimism is helping sustain the market's momentum.
Today, we'll show you the most important earnings reports coming today and what they'll mean for your money.
Here are the numbers from Monday for the Dow, S&P 500, and Nasdaq:
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Now here are what I think will be the most important market events and stocks on Monday morning.
The Top Stock Market News for Tuesday
- On the coronavirus front, the number of COVID-19 cases jumped to 3.8 million in the United States. The death toll is on the verge of surpassing 141,000. President Trump has vowed to resume White House briefings on the outbreak, perhaps as soon as today. Trump has also finally endorsed the use of masks and face coverings. Around the country, new states are facing an uptick in cases, like Idaho. Meanwhile, Florida, Texas, and Arizona show little signs of slowing down in new cases. Quest Diagnostics, one of the largest testing and lab companies in the United States, has warned that it might not be able to meet testing demand in the months ahead due to the limitations of its current technologies. Speculation is that flu season will invade the United States and millions of Americans will seek COVID-19 tests in order to rule out the possibility that they have contracted the virus.
- This week, millions of Americans will see their additional jobless benefits of $600 per week expire. Now, the fighting will begin in Washington between Democrats and Republicans on how to keep the economy afloat and prevent massive economic dislocation across the nation. This morning, House Minority Leader Kevin McCarthy warned that he doesn't expect any new COVID-19 relief bill to pass by the end of the week – McCarthy has set a target for August. However, the size of the bill remains the central concern for both parties. Republicans and U.S. President Donald Trump are planning a $1 trillion package, while Democrats have already passed a $3 trillion package in the House. The United States is looking to follow Europe's latest effort on a grand bargain. This morning, after a long summit among leaders, the EU reached a $2 trillion deal to support its economies.
- Meanwhile, Democratic presidential nominee Joe Biden continues to promise bold spending initiatives. His latest is a $775 billion plan that would fund universal childcare and in-home care for elderly Americans. The plan is drawn out over a decade and aims to rebuild the nation's caregiving industries. He has also pledged to sign a "domestic workers bill of rights," which was introduced last year in the Senate by Kamala Harris, whom many speculate will be Biden's Vice Presidential candidate.
Stocks to Watch Today: KO, IBM, AMZN
- Shares of Coca-Cola Co. (NYSE: KO) popped 2.3% after the company reported positive earnings on Tuesday morning. The company reported a year-over-year decline of 33% and its largest drop in revenue in 25 years. However, the company still came in above Wall Street expectations. The firm's EPS came in at $0.42, which topped expectations by $0.02. On revenue, Coca-Cola reported $7.2 billion for the quarter, a figure that matched expectations from analysts. The firm's CEO, James Quincey, acknowledged his concerns about the economic challenges ahead for the company.
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- International Business Machines Corp. (NYSE: IBM) reported earnings of $2.18 per share for the quarter. That figure topped Wall Street expectations of $0.11. Revenue surpassed Wall Street expectations as well thanks to stronger-than-expected revenue in cloud software and mainframe sales. Big Blue has committed a significant amount of resources into cloud software.
- Amazon.com Inc. (NASDAQ: AMZN) announced it has delayed "Prime Day." The annual shopping holiday, held in July, has faced delays due to third-party sellers' concerns about the economy. Amazon hasn't set a new date for the event, but speculation is that it will be shifted to October. But that hasn't slowed the stock down. Amazon surged to a new record high yesterday.
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.