Dow Erases Triple-Digit Loss as Trump Meets Juncker

The S&P brushed off GM's slide to finish higher

Jul 25, 2018 at 4:28 PM
facebook twitter linkedin


The Dow was down nearly 130 points at its intraday low, as a negative earnings reaction for Boeing (BA) pressured the blue-chip index. However, the Dow swung higher in the last hour of the session, amid reports of positive trade talks between U.S. President Donald Trump and European Commission President Jean-Claude Juncker. The European Union (EU) allegedly agreed to lower industrial tariffs and increase imports of American soybeans. It was a similar scenario for the S&P, which brushed off stiff headwinds from General Motors (GM) to close higher, while the Nasdaq nabbed a record close as tech stocks soared.

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

  • Citron: This stock is the "next great drug short."
  • The options market is pricing in a big Amazon earnings reaction.
  • GM's sell-off puts Ford stock at risk for bear notes.
  • Plus, options traders blasted this new Amazon partner; 2 biotechs ready to bounce; and behind the Spotify downgrade.

The Dow Jones Industrial Average (DJI - 25,414.10) explored a 319-point trading range on both sides of breakeven, eventually closing up 172.2 points, or 0.7%. Twenty-five Dow stocks closed higher, led by a 2.9% gain for Microsoft (MSFT). Verizon (VZ) led the five decliners with its 1.2% drop.

The S&P 500 Index (SPX - 2,846.07) added 25.7 points, or 0.9%, for its highest close since Jan. 29. The Nasdaq Composite (IXIC - 7,932.24) hit a record intraday high of 7,933.31 in the final minutes of trading, before settling with a slimmer 91.5-point, or 1.2%, gain.

The Cboe Volatility Index (VIX - 12.29) slipped 0.1 point, or 1%.

Closing Indexes Summary July 25

NYSE and Nasdaq Stats July 25

5 Items on Our Radar Today

  1. U.S. National Security Advisor John Bolton said a proposed meeting between President Donald Trump and Russian President Vladimir Putin won't happen until "after the first of the year." Trump initially suggested Putin visit this fall, after the two met last week in Helsinki. (MarketWatch)
  2. Qualcomm (QCOM) is reportedly going to throw in the towel on its bid for semiconductor firm NXP Semiconductors (NXPI). According to sources, this is in anticipation the purchase will not be approved by Chinese regulators, and QCOM is expected to use the funds to buy back shares. (CNBC)
  3. News of a fresh partnership with Amazon had options traders making a beeline to this stock.
  4. These 2 biotechs are trading near historically bullish trendlines.
  5. 2 reasons Pivotal Research Group downgraded Spotify stock.

Corporate Earnings July 25

Unusual Options Activity July 25

Data courtesy of Trade-Alert

Gold Pops as Dollar Eases

A bigger-than-expected decline in weekly crude inventories boosted oil prices today. At the close, September-dated crude was up 78 cents, or 1.1%, at $69.30 per barrel.

Gold gained ground today as the greenback cooled. Gold for August delivery rose $6.30, or 0.5%, to settle at $1,231.80 an ounce.


A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earnings guide for Q3 before it's too late!


  
 
Special Offers from Schaeffer's Trading Partners