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The Dow Jones today could see gains after U.S. President Donald Trump called for $25 billion in emergency funding for the airline industry.
Trump's latest push for stimulus came just hours after he said that he had called off stimulus talks until "after the election." The president's statement also comes shortly after U.S. Fed Chair Jerome Powell urged Congress to take action. More on everything moving the Dow today, below.
Here are the numbers from Tuesday for the Dow, S&P 500, and Nasdaq:
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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
- This morning, airline stocks are moving higher thanks to calls from U.S. President Donald Trump to provide $25 billion in emergency funding to the industry. Shares of United Airlines Holdings Inc. (NYSE: UAL), American Airlines Group Inc. (NASDAQ: AAL), Southwest Airlines Co. (NYSE: LUV), and Delta Air Lines Inc. (NYSE: DAL) are all finding support. However, there remains a wealth of criticism against airline companies. These companies engaged in a significant amount of stock buybacks in recent years and failed to build rainy day funds after several liquidity events that have nearly sunk the industry.
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- Johns Hopkins University reports that the death toll from COVID-19 in the United States is now just shy of 211,000. But the bigger story today is the economic damage anticipated from this disease all around the globe. Today, we saw several central banks across Europe warn that another wave of the virus could decimate their economies. The Bank of Spain said yesterday that the nation's economy could contract by 12.6% this year. Meanwhile, France – the second largest economy in the EU – said that new cases will negatively impact businesses and prevent the economic rebound they desired.
- Finally, the 2020 election will continue on Wednesday. Tonight, Vice President Mike Pence will face off in a debate with Democratic Senator Kamala Harris (California). The event will take place in Salt Lake City, Utah, and will feature plexiglass barriers to ensure social distancing. At least, we'll get some new economic news ahead of the event. Pay attention to the release of minutes from the Fed's September meeting on monetary policy. We may get some additional clues on the state of the economy, which will likely be a central element of tonight's debate.
Stocks to Watch Today: JBLU, T, LEVI
- Shares of JetBlue Airways Corp. (NASDAQ: JBLU) are up more than 6% on two major stories. First, an airline bailout would help boost the company's stock and stabilize its balance sheet. In addition, JPMorgan Securities issued a rare double upgrade on the company's stock and predicted that it had 40% upside. The asset management firm lifted its rating on JBLU from "underweight" to "overweight" and offered a bullish long-term outlook.
- Shares of AT&T Inc. (NYSE: T) are in focus as the company prepares to divest its DirecTV holdings. According to reports, the firm is moving forward with an auction despite bids coming in much lower than many analysts had expected. Reports state that offers are well below $20 billion, which is a massive drop from the $49 billion the company purchased DirecTV for just five years ago. AT&T's satellite TV provider has been disrupted by the rise of streaming entertainment and television.
- Finally, shares of Levi Strauss & Co. (NYSE: LEVI) stock popped 12.5% after the company reported earnings and crushed Wall Street expectations. The firm behind the iconic jeans brand reported earnings per share of $0.08. That figure easily topped consensus expectations of a $0.22 loss. The firm also reported very strong revenue thanks to a 52% jump in digital sales. That said, the firm's year-over-year sales were still off about 27% compared to the same time last year. The firm cited a strong uptick in store closures.
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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.