Stock Market Today: Markets to Take Cue from Brexit Speech
Dow Jones May Slip on Brexit and China Concerns
The Dow Jones Industrial Average (DJIA) is expected to trade lower in the stock market today as everybody focuses on Theresa May’s speech about Brexit. Moreover, Chinese President Xi Jinping’s address in Davos is also in focus. Markets may take a breather, and attention will be on the quarterly results announcements this week.
Stocks to Watch Today
General Motors Company (NYSE:GM) stock will be in focus today as the company has announced that it will be investing around $1.0 billion in its facilities in the U.S., which will also result in the creation of 1,500 jobs. Donald Trump tweeted a couple of weeks back, warning General Motors that it would have to pay a big border tax if it continued to produce cars in Mexico. (Source: “Twitter post,” @realDonaldTrump, January 3, 2017.)
GM stock is likely to benefit from the news as the company gets ready to work with the Trump administration. Even Ford Motor Company (NYSE:F) had announced that it was canceling its plans to invest in Mexico, and was instead investing to expand its Michigan facility.
AT&T Inc. (NYSE:T) stock is likely to be in the limelight as AT&T Chairman and CEO Randall Stephenson said that the spin-off of CNN to go ahead with the Time Warner Inc (NYSE:TWX) deal does not make sense. He is quite optimistic that the vertical merger would get approval from regulators. (Source: “CNN spinoff to win Time Warner deal approval makes no sense, AT&T CEO says,” CNBC, January 17, 2017.)
As Donald Trump’s Inauguration Day comes near, T stock is likely to be in the news as Trump makes his position on the Time Warner deal more clear. Earlier in his campaign, Trump had made his view clear that he was against such mergers, as that meant too much power in the hands of too few.
Netflix, Inc. (NASDAQ:NFLX) stock is set to make further gains as the sentiment improves further. As the company gets closer to announce its quarterly results, analysts and investors are upbeat that the company will post good subscriber numbers as its original content makes it the leading player in the field.
Further, NFLX stock has been upgraded to “buy” from “neutral” by Mizuho Securities Co., Ltd., which has raised its price target to $152.00. Netflix stock currently trades at around $133.25. The firm is optimistic of the growth potential in international markets. (Source: “Mizuho Securities Upgrades Netflix (NFLX) to Buy, Positive On ‘Moats Around Content’,” StreetInsider, January 17, 2017.)
