Dow Plunges 650 Points as Global Sell-Off Intensifies

The arrest of Huawei's CFO throws a wrench in U.S.-China trade relations

by Patrick Martin

Published on Dec 6, 2018 at 11:52 AM

U.S. stocks are selling off today, with the Dow Jones Industrial Average (DJI) down more than 650 points at midday, amid renewed concerns about global trade. The likelihood of a long-term U.S.-China trade deal is in question, following the high-profile arrest of Huawei Chief Financial Officer Meng Wanzhou, which has sent the tech sector spiraling lower. Concerns about bond yields and oil prices are also weighing on stocks. January-dated crude futures were last seen 5% lower at $50.21 per barrel, after the Organization of the Petroleum Countries (OPEC) delayed its decision on output cuts until tomorrow.

The S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are getting pummeled too, while the Cboe Volatility Index (VIX) -- Wall Street's "fear gauge" -- is set for its highest close since February. All three major market indexes are on pace for their worst week since March.

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

  • 2 FAANG stocks that remain in analysts' crosshairs.
  • This drug stock is down 50% today.
  • Plus, options bears betting on more troubles for Ford stock; L Brands reports upbeat sales numbers; and XLNX pulls back with the chip sector.

Midday Market Stats Dec 6

Ford Motor Company (NYSE:F)  is seeing unusual options activity today, with roughly 65,000 puts on the tape -- five times what's typically seen and volume pacing for the 100th percentile of its annual range. Almost all of the action has centered at the January 2019 8-strike put, where it looks like one trader bought to open a big block to speculate on more downside for the automaker. At last check, F was down 2.1% to trade at $9.  

L Brands Inc (NYSE:LB) is bucking the broad market sell-off and near the top of the S&P 500 today, up 3% to trade at $34.02, after the retailer reported same-store sales figures that exceeded analyst expectations. LB is still staring at a 45% deficit in 2018, and today's rally has been stymied by the shares' 200-day moving average.

Among the chip stocks getting trounced today is Xilinx, Inc. (NASDAQ:XLNX), which was down 3.5% to trade at $88.24. However, today's pullback appears to have lost steam at the shares' 30-day moving average. And despite the drop, XLNX nabbed an 18-year high of $95.18 on Monday and last month enjoyed some bullish analyst attention

MMC Daily Chart XLNX

SAGE Therapeutics Stock Hot Ahead of Earnings
The drug name is scheduled to report on Tuesday
Bear Signal Flashing for This Healthcare Stock Before Earnings
At least four analysts have issued price-target cuts on the stock this week
Signal Says This Retail Stock's on Sale
The shares pulled back this week on news of a Levi Strauss IPO
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