Index Slides as G20 Conference Weighs on Investor Optimism


dow jones newsThe Dow Jones news for Monday is the index sliding after the G20 conference. Leaders of the top global economies dropped a pledge to maintain free trade and failed to reach a compromise during a two-day meeting. Many believe the meeting reduced global trade prospects and that G20 members took a far more nationalistic approach. Here’s everything you need to know on that front.

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On Friday, the Dow Jones dropped 19 points. The downturn coincided with “quadruple witching,” a day when three related classes of futures and options contracts expired.

Let’s look at the numbers from Friday for the Dow, S&P 500, and Nasdaq:

Dow Jones: 20,914.62; -19.93; -0.10%

S&P 500: 2,378.25; -3.13; -0.13%

Nasdaq: 5,901.00; +0.24; +0.00%

Here’s a look at today’s most important market events and stocks, plus a look at Monday’s economic calendar.

What’s Ahead for the Dow Jones Industrial Average Today

The Dow Jones futures projected a 15-point decline as investors prepared for a busy day of economic news. Markets are still digesting the Fed’s decision last week to raise interest rates. Investors are eyeing a wealth of information on mergers and acquisitions.

Shares of Mobileye NV (NYSE: MBLY) were flat despite news that the company could walk away from its deal with Intel Corp. (Nasdaq: INTC). Last week, shares of MBLY surged on news that Intel would purchase the developer of self-driving vehicle technology. However, the New York Post is reporting this morning that the company may be holding out for a higher bid.

Crude oil prices were falling on news that U.S. production levels were on the rise. On Friday, Baker Hughes Inc. (NYSE: BHI) reported another uptick in U.S. production rigs. The increase of American production platforms offset expectations that OPEC will be able to deliver on its expected cuts to cap excessive production. BHI reported that the United States added 14 production platforms, bringing the total to 631. That is the highest figure since September 2015.

This morning, the WTI crude oil price today fell 1.9%. Brent crude dipped 1.4%.

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But the big news is happening in Washington.

While everyone is talking about the Trump budget, the real threat to the post-election rally is happening with the debate over the Affordable Care Act. Markets have roared higher since President Trump teased his new tax plan on Feb. 9, which promised to slash corporate taxes by 25%. But with Congress now racing to replace the Affordable Care Act, Money Morning Capital Wave Strategist Shah Gilani worries that could make investors question whether or not the tax cuts will actually come. Here’s Shah’s latest insight on what could happen next.

Stocks to Watch Today, March 20, 2017

  • In deal news, shares of Sprouts Farmers Market (Nasdaq: SFM) added nearly 10% in pre-market hours after rumors emerged that the company could merge with Albertsons.
  • Shares of Snap Inc. (NYSE: SNAP) fell another 1.7% as concerns about the stock continue to weigh on investors. Last week, several investment banks have initiated coverage on the stock over the last week, and no one wants to attach a “Buy” rating on the social media company. The stock is now within striking distance of falling below its IPO price of $17.00 per share. Money Morning has recommended that investors steer clear of this company and wait until the lock-up period is complete before making a decision on whether or not to purchase this stock.
  • Shares of Walt Disney Co. (NYSE: DIS) were up 0.6% after the entertainment giant reported a record weekend of ticket sales for its film “Beauty and the Beast.” The film grossed at least $170 million during its first weekend.
  • Shares of Array Biopharma (Nasdaq: ARRY) slumped more than 20% after the stock received bad news from JPMorgan Chase & Co. (NYSE: JPM). The investment bank slashed its price target on the biotech company.

Today’s U.S. Economic Calendar (all times EDT)

  • Chicago Federal Reserve Bank President Charles Evans speaks at 8:30 a.m.
  • Chicago Fed National Activity Index at 8:30 a.m.
  • Four-Week Bill Announcement at 11 a.m.
  • Three-Month Bill Auction at 11:30 a.m.
  • Six-Month Bill Auction at 11:30 a.m.

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