Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average tumbled on fears of a U.S.-EU trade war and the IMF's prediction of continued slowing global economic growth.
- Apple (AAPL) - Get Report climbed after analysts at Wedbush raised the tech giant's price target to $225 from $215 and maintained their outperform rating on the stock.
- Walt Disney (DIS) - Get Report rose after a Cowen analyst upgraded the stock to outperform from market perform.
Wall Street Overview
Stocks ended down Tuesday as investors reacted to the International Monetary Fund's prediction of continued slowing global economic growth in the first half of the year and as trade tensions between the U.S. and the European Union heated up.
Global growth, which peaked at nearly 4% in 2017 before slowing to 3.6% in 2018, is expected to decline to 3.3% in 2019, according to the IMF's forecast on Tuesday. U.S. economic growth likely slow in 2019 and 2020 as the fiscal stimulus winds down, the IMF said.
"Policymakers need to work cooperatively to help ensure that policy uncertainty doesn't weaken investment," IMF chief economist Gita Gopinath said in a statement. "Fiscal policy will need to manage trade-offs between supporting demand, protecting social spending, and ensuring that public debt remains on a sustainable path, with the optimal mix depending on country-specific circumstances."
Gopinath also said that "there is a need for greater multilateral cooperation to resolve trade conflicts, to address climate change and risks from cybersecurity, and to improve the effectiveness of international taxation."
The Dow Jones Industrial Average, which fell as much as 237 points, finished down 190 points, or 0.72%, to 26,151. The S&P 500 snapped an eight-day win streak and ended down 0.61%, and the Nasdaq slumped 0.56%.
Trade-war talk between the U.S. and Europe Union escalated after the EU indicated it was prepared to retaliate against two new U.S. proposals that would target European goods with tariffs. Trade tensions between the two blocs flared Monday after the U.S. said it was considering $11 billion worth of retaliatory tariffs on a range of European goods in response to what it deemed illegal subsidies the EU has granted to European airplane maker Airbus.
U.S. job openings fell in February by the most since 2015 while still exceeding the number of unemployed Americans, the U.S. Labor Department said. The number of positions waiting to be filled decreased by 538,000 to 7.09 million from an upwardly revised 7.63 million in the prior month, according to the Job Openings and Labor Turnover Survey.
Boeing (BA) - Get Report said deliveries of its 737 jet fell by a third in the first three months of 2019. The news followed the grounding of the 737 MAX jets on March 13 after two crashes in six months killed a total of 346 people. Shares were down 1.5% to $369.04.
While the firm acknowledged that the tech giant made mistakes in its December quarter as iPhone deliveries in China came in softer than expected, for the current cycle, the firm believes that about a fifth of the iPhones set to be upgraded worldwide this year will be purchased in China.
Shares of Walt Disney (DIS) - Get Report were up 1.7% to $116.86 after Cowen analyst Doug Creutz upgraded the company's shares to outperform from market perform and raised his 12-month price target to $131 from $102.
Creutz said in a note to investors that he expects the company's investor day on Thursday to be "a deck-clearing event for sentiment.
Wynn Resorts (WYNN) - Get Report abruptly terminated its discussions with Australia's Crown Resorts (CWLDY) about a A$10 billion ($7.1 billion) takeover bid after news of the potential deal was leaked.
Crown Resorts said earlier Tuesday that it had been approached by Wynn. Shares of Wynn dropped 3.9% to $139.26.