Dow Jones Industrial Average Jumps 230 Points as China-U.S. Trade Talks Enter Second Day

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The Dow Jones Industrial Average rallied 236 points in pre-market hours as investors grew increasingly bullish on trade discussions between the United States and China.

U.S. Commerce Secretary Wilbur Ross said yesterday that both nations could come to an agreement that both “can live with, and that addresses all the key issues.”

China’s trade officials have said they are acting in “good faith” and hope to reach a new agreement before their March deadline.

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Here are the numbers from Monday for the Dow, S&P 500, and Nasdaq:

Index Previous Close Point Change Percentage Change
Dow Jones 23531.35 98.19 0.42%
S&P 500 2549.69 17.75 0.70%
Nasdaq 6823.47 84.61 1.26%

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

  • Amazon.com (NASDAQ: AMZN) is now the world’s most valuable company. Shares added another 1.8% in premarket hours thanks to ongoing optimism around the U.S. and China and additional stimulus out of the world’s second-largest company. Amazon’s market capitalization now sits north of $800 billion. The company surpassed Microsoft Corporation (NASDAQ: MSFT), which finished 2018 at the top, and Apple Inc. (NASDAQ: AAPL), whose stock has slumped thanks to weak sales forecasts.
  • The White House said Monday that Americans will still receive tax returns even if the IRS is running with just 12.5% of its typical workforce. In addition, President Donald Trump said he will deliver a Prime Time speech this evening on his quest for a border wall between the United States and Mexico in an effort to end the shutdown.
  • According to reports, grocery chain The Kroger Co. (NYSE: KR) and Microsoft Corporation (NASDAQ: MSFT) are teaming up to take on Amazon and Whole Foods. The two firms will work together to develop “Smart stores”, which include digital shelves, advertising, and price tags in two retail locations in Ohio and Washington State. The partnership aims to reduce customers’ time in stores, streamline the shopping experience, and reduce costs for Kroger.

Money Morning Insight of the Day: This Company Could Be Holding the Biggest Tech Breakthrough of the DECADE

Global Market Insights sees this market worth over $80 billion by 2024.

Technology giants like Apple and Microsoft are making huge multimillion-dollar investments in this space.

Defense contractors and the U.S. military are using this market’s technology to give soldiers a competitive “advantage at sea, land, and air.” And one company is at the center of it all. See it here…

Stocks to Watch Today: JPM, AMZN, LOXO, LLY, SHLDQ, NFLX

  • JPMorgan Chase (NYSE: JPM) kicked off its 37th Annual Healthcare Conference on Monday. While President Trump and Amazon.com (NASDAQ: AMZN) were two key topics on Day One, investors seemed more focused on the ongoing wave of M&A deals in the space. Yesterday, cancer drug manufacturer Loxo Oncology (NASDAQ: LOXO) announced it would be purchased by pharmaceutical giant Lilly (NYSE: LLY) for $8 billion. Shares of LOXO stock rallied more than 66% after the news. Expect more deal news and strategy updates from healthcare companies at the San Francisco conference.
  • Today may be the final day for Sears Holding Corp. (OTC: SHLDQ). This morning, the company’s board will decide whether to accept a deal from Chairman Eddie Lampert’s hedge fund to save the company and 50,000 jobs. Lampert’s hedge fund has proposed a $4.4 billion bid; however, advisers have argued that the offer falls short and would not receive permission from a bankruptcy judge to due to an ongoing investigation into company transactions under Lampert’s term as Chairman. Should a resolution not be reached in the final hour, advisors will push for liquidation of the company’s assets. This would be the end of one of America’s most iconic retail companies. Sears, Roebuck & Company was founded in 1893 in Chicago, Illinois.
  • Shares of Netflix Inc. (NASDAQ: NFLX) popped more than 6% Monday after the company said that more than 45 million subscribers watched the film “Bird Box” during its first week. The horror film, which stars Sandra Bullock, has been so successful that Netflix, which rarely unveils data on the number of people who watch their original content, may be able to court A-List stars and directors for more projects in the future.
  • Look for earnings reports from Lindsay Corporation (NYSE: LNN) and Helen of Troy Limited (NASDAQ: HELE).

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