Dow Enjoys Strong Day Amid China Trade Optimism

Trump could step in on behalf of Meng Wanzhou, as an olive branch to China

Managing Editor
Dec 12, 2018 at 4:28 PM
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Wall Street enjoyed a positive session, as the Dow finished nearly 160 points higher thanks to optimism surrounding U.S.-China trade talks. The blue-chip index traded up over 450 points at its session highs, after reports indicated China was prepared to undergo massive changes to its trade policy, including allowing greater access to international companies. President Donald Trump, meanwhile, said he's prepared to intervene in the case of arrested Huawei CFO Meng Wanzhou if it'll help trade relations, and China allegedly made a big purchase of American soybeans as part of the recent trade truce.

The S&P 500 and Nasdaq finished comfortably in the black as well, with the latter's third straight win powered by a resurgent tech sector. Elsewhere, investors are keeping an eye on Britain, where Prime Minister Theresa May won a confidence vote.

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

  • This rare volatility signal is flashing again.
  • Analyst: This biotech stock could triple.
  • Citigroup says buy Lululemon stock after its recent sell-off.
  • Plus, 2 tech stocks to avoid; a soaring cannabis stock; and the Deutsche Bank merger buzz.

The Dow Jones Industrial Average (DJI - 24,527.27) ended up 157 points, or 0.6%. Of the 30 Dow components, 24 finished higher, led by a 2% gain from DowDuPont (DWDP). Verizon (VZ) paced the six laggards with a 2.7% fall.

The S&P 500 Index (SPX - 2,651.07) added 14.3 points, or 0.5%. The Nasdaq Composite (IXIC - 7,098.31) gained 66.5 points, or 1%.

The Cboe Volatility Index (VIX - 21.46) ended the day down 0.3 point, or 1.4%.

closing indexes summary december 12

nyse and nasdaq stats december 12

5 Items on our Radar Today

  1. President Trump's former lawyer, Michael Cohen, was sentenced to three years in prison on campaign finance charges earlier today. The financial crimes include hush payments to women during the 2016 election. Cohen, who pleaded guilty, had previously said he would "take a bullet" for President Trump amid investigations into Russia, and was sentenced on a separate charge for lying to Congress. (Reuters)
  2. The Federal Communications Commission (FCC) is now considering reversing its longstanding media ownership rules that banned mergers among major broadcast networks. This would reverse the rule that bars the Big Four entities from merging; Comcast's (CMCSA) NBC, Twenty-First Century Fox (FOXA), Walt Disney's (DIS) ABC, and CBS Corp (CBS). Such an antitrust rule has been in place since the 1940s. (Reuters)
  3. These 2 tech stocks could struggle to start 2019.
  4. This cannabis stock soared after the Farm Bill cleared the Senate.
  5. Merger buzz drew call traders to Deutsche Bank's table.

corporate earnings december 12

unusual options volume december 12

Data courtesy of Trade-Alert

Oil Surrenders Gains, Gold Edges Higher

Oil futures fell today, giving back gains from earlier in the day. Traders digested a slimmer-than-expected drop in U.S. crude inventories last week. January-dated crude futures slid 50 cents, or 1%, to finish at $51.15 per barrel.

Gold futures rallied today, as the dollar slipped on inflation data. February-dated futures added $2.80, or 0.2%, to settle at $1,250 per ounce.

 

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