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The Dow Jones news today will focus on the ability of the Trump administration and Congress to get a healthcare bill passed and a new cyberattack hitting computers across the world. Technology and healthcare stocks were dragging down the Nasdaq in premarket hours.
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, plus Wednesday's economic calendar.
The Five Top Stock Market Stories for Wednesday
- On Tuesday, the U.S. Senate announced plans to delay a vote on its plan to repeal and replace the Affordable Care Act. Biotech stocks slumped after leaders said a vote would not take place until after the July 4 holiday due to the lack of support within the Republican ranks. President Donald Trump said this morning that leadership was getting closer to a deal; however, biotech stocks like Biogen Inc. (Nasdaq: BIIB) were off in early trading
- Markets are still trying to make sense of Tuesday's massive ransomware attack that hammered computer systems around the globe. Victims of the attack included servers of Russia's largest oil company, Ukrainian banks, pharmaceutical giant Merck & Co. (NYSE: MRK), and global advertising and shipping firms. The attack has been compared to the WannaCry malware attack in May that hit hundreds of thousands of devices in more than 190 countries. Despite the news, cybersecurity stocks barely moved. It appears that the significant rise of ransomware attacks around the globe are not fueling short-term bumps.
- Tech stocks were sliding in premarket hours thanks to rising concerns about valuations in the sector. Yesterday's ransomware attack compounded worries about geopolitical uncertainty spreading around the globe. Investors are shifting to more defensive positions. Shares of tech giants like Apple Inc. (Nasdaq: AAPL), Alphabet Inc. (Nasdaq: GOOGL), and Microsoft Corp. (Nasdaq: MSFT) were all sliding in premarket hours
- Tuesday, U.S. Federal Reserve Chair Janet Yellen spoke in London. The central bank chair didn't say anything that conflicted with previous statements about the Fed's plans. The central bank will continue to unwind its balance sheet and raise interest rates should market conditions continue to warrant such activities.
- Crude oil prices were sliding ahead of today's official inventory report from the Energy Information Administration. Traders are on edge after an industry group reported a surprise uptick in crude stock and reignited fears about OPEC's potential inability to curb excessive global supply. The global oil cartel and 11 non-member nations voted in May to extend the planned cuts of 1.8 million barrels per day (bpd) through March 2018. However, with U.S. shale production on the rise, many remained unconvinced that there will be enough support to offer a big bump to prices. The WTI crude oil price today fell 0.3%. Brent crude dipped 0.1%.
Four Stocks to Watch Today: KBH, FB, MON, AMZN
- In earnings news, shares of KB Home (NYSE: KBH) added 0.8% in premarket hours after the company topped quarterly earnings expectations after the bell yesterday. The homebuilder reported earnings per share (EPS) of $0.28, topping Wall Street expectations by two cents. The firm also beat revenue expectations, reporting $930 million total. The report was positive in the wake of yesterday's underperforming report on home sales.
- It's another incredible day to be Mark Zuckerberg, the CEO of social media giant Facebook Inc. (Nasdaq: FB). Yesterday, the firm announced that the number of regular users on its flagship service hit the 2 billion mark. This figure means that it has doubled its user base in just five years. The number of users absolutely crushes the 328 million monthly active users on Twitter Inc. (NYSE: TWTR) and the 166 million daily users on Snapchat, which is owned by parent company Snap Inc. (NYSE: SNAP). Shares of FB stock were flat in premarket hours.
Are Tech Stocks In a Bubble?
- Meanwhile, shares of Monsanto Co. (NYSE: MON) are in focus as the global seed and agrochemical giant prepares to report earnings. Wall Street anticipates that the company will report EPS of $1.74 on top of $4.09 billion in revenue. While the earnings report will move the stock price, the real news will be fought in the court of public opinion over a public health issue tied to one of its best-selling products. Yesterday, California announced it had designated a key ingredient in the herbicide Round-Up to a list of cancer-causing agents. Monsanto said it will fight the state over the decision.
- Today is the day to price the Blue Apron Holdings Inc. IPO. The meal delivery kit marker was expected to price its IPO between $15 and $17 a share. However, the company now projects a range between $10 and $100. It's an important IPO given the competitive threat the company faces from Amazon.com Inc. (Nasdaq: AMZN), which just made a huge splash in the grocery market with the $13.7 billion bid for Whole Foods Market Inc. (NYSE: WFM).
- Other stocks to watch today include Sears Holdings Corp. (Nasdaq: SHLD), JinkoSolar Holding Co. Ltd. (NYSE: JKS), and Omeros Corp. (Nasdaq: OMER). Here's what you need to know.
- Look for additional earnings reports from Pier 1 Imports Inc. (NYSE: PIR), General Mills Inc. (NYSE: GIS), Paychex Inc. (Nasdaq: PAYX), Jamba Inc. (Nasdaq: JMBA), HB Fuller Co. (NYSE: FUL), and Worthington Industries Inc. (NYSE: WOR).
Wednesday's U.S. Economic Calendar (all times EDT)
- San Francisco Fed Bank President John Williams speaks at 3:30 a.m.
- MBA Mortgage Applications at 7:00 a.m.
- International Trade in Goods at 8:30 a.m.
- Pending Home Sales Index at 10 a.m.
- EIA Petroleum Status Report at 10:30 a.m.
- Two-Year FRN Note Auction at 11:30 a.m.
- Seven-Year Note Auction at 1 p.m.
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