Dow Jones Now Flat After Stocks Leave the Index

The Dow Jones now is flat after Salesforce.com Inc. (NYSE: CRM), Amgen Inc. (NASDAQ: AMGN), and Honeywell International Inc. (NYSE: HON) replace Exxon Mobil Corp. (NYSE: XOM), Pfizer Inc. (NYSE: PFE), and Raytheon Technologies Corp. (NYSE: RTX) on the index.

This week, the S&P 500 and Nasdaq reached milestones since hitting intraday lows in March. Gains are 57% and 72%, respectively. Read on to see what else is moving the Dow today.

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

Now here's a closer look at today's most important market events and stocks. We'll also discuss the stories that slipped under the radar of the mainstream financial press on Wednesday.

The Top Stock Market Stories for Wednesday

• Today, investors are cheering positive reports about trade relations between the United States and China. According to reports, the two nations have resumed talks about a trade deal. The two sides reportedly made "progress and are committed to taking the steps necessary to ensure the success" of a phase one trade deal.

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• Meanwhile, investors are reacting positively to the shakeup on the Dow Index. Yesterday, Salesforce.com (NYSE: CRM), Amgen Inc. (NASDAQ: AMGN), and Honeywell International Inc. (NYSE: HON) replaced three companies on the index – Exxon Mobil Corp. (NYSE: XOM), Pfizer Inc. (NYSE: PFE), and Raytheon Technologies Corp. (NYSE: RTX). The news hit XOM stock as shares fell by more than 3.1%. Exxon had been a member of the Dow for almost 100 years.
• Johns Hopkins University reports that the number of U.S. COVID-19 cases has now topped 5.7 million, with Brazil now sitting at 3.6 million. However, the virus appears to be in retreat as case numbers fall across the country. It has been nearly eight months since scientists first identified the virus, and they are still learning how it impacts the human body.

Stocks to Watch Today: DAL, AAL, CRM, AZN

• Shares of Salesforce.com (NYSE: CRM) rallied more than 13% after the company shattered earnings expectations on Tuesday. The firm also topped expectations by issuing a very positive forward guidance report. CRM reported earnings per share for the June-ending quarter of $1.44, a figure that shattered Wall Street consensus of $0.67. Meanwhile, revenue of $5.15 billion easily beat forecasts.
• Shares of AstraZeneca Plc. (NYSE: AZN) are on the move after the biotech giant reported the start of its phase 1 clinical trial for AZD7442, a new preventative treatment for COVID-19. The company is already developing a potential vaccine with the University of Oxford. The new trial will include at least 48 healthy participants in the United Kingdom. The participants will range in age between 18 and 55.
• Finally, airlines are now planning to make severe cuts to their workforces. Delta Air Lines Inc. (NYSE: DAL) has announced plans to furlough at least 1,941 pilots in October if it cannot reach an agreement with the labor union. The company had previously warned about even more furloughs during the summer. Meanwhile, American Airlines Group Inc. (NASDAQ: AAL) is set to lay off at least 19,000 employees as COVID-19 continues to ravage the airline industry.

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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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