Stocks Pare Massive Losses on Fed Report

The arrest of Huawei's CFO sent shockwaves through the market

by Patrick Martin

Published on Dec 6, 2018 at 4:24 PM

It was another volatile day on Wall Street, with the Dow down more than 780 points at its session low as hopes for a U.S.-China trade deal took a hit after the arrest of Huawei Chief Financial Officer (CFO) Meng Wanzhou. However, the blue-chip index pared the bulk of these losses by the close -- and the Nasdaq finished in the green -- after the Wall Street Journal reported the Federal Reserve may be considering a "data dependent" approach to monetary policy, which could slow the pace of rate hikes after its December meeting. This follows this morning's update on private payrolls from ADP, and comes ahead of tomorrow's monthly jobs report.

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

  • 2 stocks crushed on the Huawei scandal.
  • Why one analyst is targeting 30% upside for this tech stock
  • History indicates this retail stock is on sale.
  • Plus, a big bearish options bet on Ford; 2 FAANG stocks hit with analyst attention; and UPS options traders turn a quick profit

The Dow Jones Industrial Average (DJI - 24,947.67) dropped 79.4 points, or 0.3%. Cisco Systems (CSCO) led the 14 gainers with its 2.2% win, while Boeing (BA) paced the 16 losers with its 3.1% drop.  

The S&P 500 Index (SPX - 2,695.95) shed 4.1 points, or 0.2%. The Nasdaq Composite (IXIC - 7,188.26) added 29.8 points, or 0.4%, after being down as much as 174 points in intraday action.

The Cboe Volatility Index (VIX - 21.19) gained 0.5 point, or 2.2%.

us closing index summary dec 6

nyse and nasdaq stats dec 6

5 Items on our Radar Today

  1. The U.S. trade deficit soared to a 10-year high in October, increasing 1.7% to $55.5 billion, the highest level since October 2008. This is the fifth straight month the trade gap has widened, which suggests President Donald Trump's controversial tariffs imposed against China have been largely ineffective. (Reuters)
  2. Ride-sharing startup Lyft has put the wheels in motion for its initial public offering (IPO) in 2019. Earlier today, the company filed confidential paperwork with the Securities and Exchange Commission (SEC). Rival Uber is also expected to go public next year. (ABC News)
  3. Ford options bear bets on bigger losses ahead.
  4. 2 FAANG stocks felt the analyst heat today.
  5. How UPS options traders tripled their money in two days.

corporate earnings dec 6

unusual options volume dec 6

Data courtesy of Trade-Alert

Oil Drops After OPEC Delay, Gold Edges Higher

Oil fell today, after the Organization of the Petroleum Exporting Countries (OPEC) pushed back its decision regarding supply cuts to Friday. Oil for January delivery gave back $1.40, or 2.7%, to settle at $51.49 per barrel. 

Gold prices climbed once more, gaining steam as the U.S. dollar continued to weaken, and the global stock sell-off increased the demand for the safe-haven asset. February-dated gold futures added $1 to close at $1,247.60 per ounce.

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