Dow Drops 195 Points as Trump Cancels North Korea Summit

Stocks are spiraling on fresh geopolitical uncertainty

Emma Duncan
May 24, 2018 at 11:59 AM
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Stocks are trading significantly lower at midday, after President Donald Trump announced that the June 12 summit with North Korea is canceled. In a letter to Kim Jong Un, Trump stated,"based on the tremendous anger and open hostility displayed in your most recent statement, I feel it is inappropriate... to have this long-planned meeting." In response, the Dow Jones Industrial Average (DJI) is down triple digits, while the S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are also notably lower. 

Continue reading for more on today's market, including:

  • This China stock is one analyst's top large-cap pick.
  • Another bull note for Box ahead of earnings.
  • Plus, Best Buy options pop post-earnings, another retailer eyes its best day in years, and the drug stock plunging on an FDA rejection.

Midday Market Stats May 24

Electronics retailer Best Buy Co Inc (NYSE:BBY) is seeing a surge in options volume today, with roughly 19,000 calls and 21,000 puts traded so far -- about 11 times the intraday norm. Seeing notable action are the soon-to-expire weekly 5/25 66.50-strike and 70-strike puts. BBY stock is 7% lower to trade at $70.60, falling after the company's quarterly earnings report showed slowing online sales and the second-quarter profit forecast missed expectations. Best Buy stock hit a new record high of $79.84 last Wednesday.

One of the top performers on the New York Stock Exchange (NYSE) is fellow retailer Williams-Sonoma, Inc. (NYSE:WSM), with the stock gapping higher after the company reported a first-quarter earnings beat and raised its current-quarter forecast. WSM stock is 13.6% higher to trade at $55.85, and earlier touched an intraday peak of $56.11 -- putting the shares on track for their biggest daily gain since November 2000. WSM is set to close above its 50-day moving average for the first time since March 29.

Daily Chart of WSM with 50 MA

One of the Nasdaq's worst performers today is drug concern Recro Pharma Inc (NASDAQ:REPH), after the Food and Drug Administration (FDA) declined to approve the company's non-opioid pain shot. In response, REPH was last seen 57.8% lower at $5.24, just off a new three-year low of $5.10. Prior to today's plunge, REPH was up 25% year-to-date; now, the stock is off 43% for 2018.


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