Trade Tensions Put Dow Streak In Jeopardy; NATO Summit Kicks Off

Trump threatened more tariffs against China, took aim at Germany

by Patrick Martin

Published on Jul 11, 2018 at 11:58 AM
Updated on Jul 11, 2018 at 12:03 PM

After a red-hot start to the week, the Dow Jones Industrial Average (DJI) has surrendered more than 180 points today, as trade war tensions with China rear their ugly head once more. The S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are also in the red, and it appears all three benchmarks will see their four-day winning streaks come to an end. Along with threatening new tariffs on Chinese goods, President Donald Trump is also making waves at the NATO summit in Brussels, accusing Germany of being "totally controlled by Russia." Elsewhere, oil prices are lower after Libya reopened key ports, overshadowing a steep drop in domestic crude inventories last week. At last check, August-dated oil futures are down 2.5% at $72.25 per barrel.

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

  • This pharma stock is J.P. Morgan Securities' top pick.
  • TripAdvisor stock has room to run.
  • Plus, call volume surges on Deere stock; Fastenal stock's best day in years; and American Airlines stock keeps sinking.

Midday Market Stats July 11

One name seeing notable options trading today is Deere & Company (NYSE:DE). Shares of the machinery manufacturer are down 1.9% at $141.75, after J.P. Morgan Securities cut its price target to $154 from $170. However, options bulls could be banking on a big rebound soon. Call volume is running at eight times the expected pace, on track for the 100th percentile of its annual range. Leading the charge today is the September 145 call, where more than 11,000 contracts have been exchanged, and buy-to-open activity is suspected.

Leading the S&P 500 today is Fastenal Company (NASDAQ:FAST), up 10% to trade at $54.87, after the industrial machinery maker defied historical trends -- and recent options buyers -- and reported second-quarter revenue that exceeded analyst forecasts. Fastenal shares are on track for their biggest one-day gain since October 2008, and are poised to finish above their 100-day moving average for the first time in over a month.

MMC Stock Chart FAST

One of the worst stocks on the S&P 500 today is American Airlines Group Inc (NASDAQ:AAL), down 6% to trade at $36.76, and earlier touching an annual low of $36.59. The struggling airliner slashed its second-quarter unit revenue forecasts prompting a price-target cut from Cowen to $48 from $55. AAL stock has now shed almost 30% in 2018.

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