The Dow Jones today is heading for a flat morning as traders wait to hear from U.S. Federal Reserve Chair Jerome Powell. The head of the U.S. central bank will speak at 1 p.m. at the Council on Foreign Relations. He is expected to discuss his outlook on the U.S. economy and the road ahead for interest rates.
Here are the numbers from Monday for the Dow, S&P 500, and Nasdaq:
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Now, here’s a closer look at today’s Money Morning insight, the most important market events, and stocks to watch.
The Top Stock Market Stories for Tuesday
- In deal news, AbbVie Inc. (NASDAQ: ABBV) announced plans to purchase Botox manufacturer Allergan Plc. (NYSE: AGN) in a deal worth $63 billion. The deal will provide a mixture of ABBV stock and cash to Allergan shareholders. Shares of AGN stock popped more than 45% over Allergan’s closing price Monday. With the inclusion of debt, this deal will wind up costing AbbVie $83 billion.
- Trade will once again generate the most buzz Tuesday as investors speculate on the pending meeting between U.S. President Donald Trump and Chinese President Xi Jinping later this week. This will be the first face-to-face meeting between the leaders of the world’s two largest economies since trade discussions collapsed in May.
- Oil prices saw little movement this morning as investors continue to weigh ongoing tensions between the United States and Iran – and ongoing demand concerns around the globe. With increased signs that the global economy is slowing, energy watchdogs have lowered expected demand around the globe. Those concerns have forced OPEC to continue to maintain output at current levels. The oil cartel’s largest member – Saudi Arabia – reiterated that it has no plans to increase supply in the near future. Russia, a non-member but active participant in OPEC’s considerations, also reiterated the need for international cooperation to support global oil prices. This comes at a time that U.S. production has increased, while the White House clamps down on Venezuela and Iran with sanctions.
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Stocks to Watch Today: BYND, FDX, LEN, UPS, MU
- Shares of Beyond Meat Inc. (NASDAQ: BYND) are in a free fall. Shares plunged more than 8% Monday and another 2% Tuesday morning after Whole Foods signed a deal with one of the firm’s top competitors. BYND has been on a roller coaster since its IPO in early May. Shares rocketed from $45 to as much as $201.88 per share. BYND stock is currently sitting under $139 per share, and Wall Street expects that it will continue to dip in the weeks ahead.
- FedEx Corp. (NYSE: FDX) will report earnings after the bell as it tries to regain trust on Wall Street. Markets have been disappointed by the company’s last five quarterly earnings reports. Shares have declined steadily after each of these reports. The firm has struggled since its acquisition of TNT Express, a deal that was supposed to bolster its international market share against rival United Parcel Service Inc. (NYSE: UPS). Today, the firm is expected to report EPS of $4.81 on top of $17.8 billion.
- In other news, shares of Lennar Corp. (NYSE: LEN) popped 3% after the firm topped Wall Street earnings expectations before the bell. The homebuilder reported a 1% increase in new orders year over year and said that its deliveries gained 5% in the year. Lennar’s $1.30 earnings per share topped Wall Street estimates by $0.16. The stock could get an additional boost this morning when we receive the May new homes report at 10 a.m.
- Look for additional earnings reports from Micron Technology Inc. (NASDAQ: MU), AeroVironment Inc. (NASDAQ: AVAV), SYNNEX Corp. (NYSE: SNX), and FactSet Research Systems Inc. (NYSE: FDS).
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