Start the conversation
The Dow Jones news today will focus on Washington, as Republicans struggle to repeal Obamacare and a new meeting between President Trump and Vladimir Putin was revealed. Dow Jones futures are up eight points after an early round of earnings reports from American Express Co. (NYSE: AXP), Morgan Stanley (NYSE: MS), and T-Mobile U.S. Inc. (NYSE: TMUS).
Here are the numbers from Tuesday for the Dow, S&P 500, and Nasdaq:
|Index||Previous Close||Point Change||Percentage Change|
Must See: This Great Depression-Era "Secret" Helped Transform Two Teachers into Millionaires. Read more…
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
- U.S. President Donald Trump isn't taking any blame for his party's inability to repeal and replace the Affordable Care Act. Republican leadership failed to obtain enough votes to replace Obamacare, and Trump responded by saying that he is willing to allow Obamacare to fail on its own. While the Affordable Care Act has done little to curb spiraling costs and improve consumer choice, Republicans are likely to face significant pressure at the polls over their inability to take action. Critics like Sen. Corey Booker (D-NJ) have called the willingness to let Obamacare fail a "sinister" move on Trump's part.
- Earnings season will continue Wednesday as investors digest updates from blue-chip companies. Shares of International Business Machines Corp. (NYSE: IBM) fell nearly 3% in premarket hours after the company reported its 21st consecutive quarter of declining revenues. IBM revenue fell roughly 4.7% in the second quarter as its legacy businesses continue to weigh down the upside from its artificial intelligence and cloud computing operations.
- Chipotle Mexican Grill Inc. (NYSE: CMG) stock is under pressure after a Virginia-based location shut down after several customers grew ill. Shares are off 0.5% in premarket hours, and the event has drawn comparisons to a 2015 series of outbreaks of food-borne illnesses at Chipotle restaurants. Shares are trading just below $375 per share, or 50% below their all-time high of roughly $750 in August 2015.
- In economic news, the day started with a positive report on new home construction. In June, U.S. housing starts totaled 1.215 million, compared to the 1.16 million anticipated by economists. With demand rising and supplies tightening, the industry has experienced a strong revival. Look for some positive momentum from homebuilders like KB Home (NYSE: KBH) and Toll Brothers Inc. (NYSE: TOL) in today's trading session.
- Crude oil prices were ticking slightly higher on news that U.S. gasoline demand is on the rise. However, traders remain cautious as they keep an eye out on the progress of global oil cartel OPEC and its efforts to cap excessive production. Today, markets will be looking for a report on U.S. inventory levels from the American Petroleum Institute to see if there has been increased momentum in reducing the glut of supply in the country. The WTI crude oil price today added 0.1%. Brent crude added 0.3%.
Three Stocks to Watch Today: MS, NFLX, PG
- Shares of Morgan Stanley (NYSE: MS) are on the move after the company reported second-quarter earnings. Shares added more than 2.3% on news that the firm's trading unit beat Goldman Sachs Group Inc. (NYSE: GS) for the second straight quarter.
- Shares of Netflix Inc. (Nasdaq: NFLX) are dipping slightly after the stock had a huge day on Wall Street on Tuesday. The company's quarterly earnings report Monday after the bell beat Wall Street expectations. The streaming video giant is making strides in its push for international subscriptions, news that has sent the stock to a record high. Analysts are expecting even greater growth for the firm in the future as it enters new markets around the globe. So, is NFLX stock a buy right now? Money Morning Technical Trading Specialist D.R. Barton, Jr., recently joined Neil Cavuto on FOX Business Network to tell us what to expect from Netflix and the rest of the media world going forward. Watch him, here.
The Tech Stock Dip Is a Buying Opportunity
- Shares of Procter & Gamble Co. (NYSE: PG) are generating headlines after the firm received a proxy challenge from billionaire activist hedge fund manager Nelson Peltz. The hedge fund manager has taken a $3.3 billion stake in the consumer goods giant, and now he's pushing for a board seat to better control the organization. How will Peltz affect PG stock? Find out that answer, right here.
- Look for additional earnings reports from Qualcomm Inc. (Nasdaq: QCOM), American Express Co. (NYSE: AXP), Kinder Morgan Inc. (NYSE: KMI), U.S. Bancorp (NYSE: USB), and United Rentals Inc. (NYSE: URI).
Wednesday's U.S. Economic Calendar (all times EDT)
- MBA Mortgage Applications at 7 a.m.
- Housing Starts at 8:30 a.m.
- EIA Petroleum Status Report at 10:30 a.m.