Dow Sinks 551 Points as Tech, Retail, Oil Sell Off

Oil plunged on IEA comments and Trump's vow to stand by Saudi Arabia

by Lillian Currens

Published on Nov 20, 2018 at 4:29 PM

The Dow plunged more than 550 points today, completely erasing its 2018 gains, with all 30 stocks ending lower. Apple (AAPL) took yet another beating, with most other FAANG stocks following suit. The retail sector was another major culprit of today's losses, with several notable names reporting disappointing earnings, including Target (TGT). Energy stocks also took a hit, as oil prices fell to new lows. Pressuring black gold was an International Energy Agency (IEA) warning of "an unprecedented period of uncertainty in oil markets." In addition, President Donald Trump said the U.S. will stand by Saudi Arabia in spite of intel suggesting it was responsible for the death of journalist Jamal Khashoggi.

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

  • What the "death cross" means for Nvidia and 16 other stocks. 
  • 2 chip stocks downgraded by analysts. 
  • The technical signal that's historically meant tailwinds for FBP. 
  • Plus, Urban Outfitters steps into the earnings confessional; the healthcare stock expected to double; and one energy stock attracting option bears. 

The Dow Jones Industrial Average (DJI - 24,465.64) fell 551.8 points, or 2.2%, today. Not a single stock finished higher today, with Johnson & Johnson (JNJ) losing the least, dropping 0.9%, and Apple losing the most, dropping 4.8%. 

The S&P 500 Index (SPX - 2,641.89)  gave back 48.8 points today, or 1.8%, while the Nasdaq Composite (IXIC - 6,908.82) sank 119.7 points, or 1.7%

The Cboe Volatility Index (VIX - 22.48) added 2.4 points, or 11.8%. 

Closing Indexes Summary Nov 20

NYSE and Nasdaq Stats Nov 20

5 Items on our Radar Today

  1. Widespread backlash has befallen Mississippi Republican Senator Cindy Hyde-Smith, after a video in which the senator made inflammatory remarks about attending a "public hanging" went viral. Walmart, which reportedly contributed $1,000 to Hyde-Smith, withdrew its support of the senator in a public tweet, and is now asking for a refund on its campaign donation. (MarketWatch)
  2. Due to an influx of multifamily housing projects, U.S. housing starts rose in the month of October. Single-family construction fell for its second consecutive month, however, as mortgage rates rise towards seven-year highs, and homebuilder sentiment is on the decline. (CNBC)
  3. URBN bucked the retail downtrend with a post-earnings rally. 
  4. The oversold healthcare stock that could double, according to one analyst. 
  5. Sinking oil prices attracted Chevron option bears

Corporate Earnings Nov 20

Unusual Options Activity Nov 20

Data courtesy of Trade-Alert

Oil Sinks to New Annual Low

Oil prices are at their lowest point since October 2017, after the head of the IEA, Fatih Birol, said, "We are entering an unprecedented period of uncertainty in oil markets." In addition, President Trump said the U.S. will remain a "steadfast partner" of Saudi Arabia. Oil for January delivery lost 6.6%, or $3.77, today to settle at $53.43 a barrel. 

Gold futures took a hit for the first time in five sessions today, dropping as the U.S. dollar found strength. December-dated gold sank $4.10 or 0.3%, to settle at $1,221.20 an ounce. 


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