Dow Suffers Worst Day In Months on Tariff Hikes

Tech and transport stocks were hit by China's tariff hikes

by Lillian Currens

Published on May 13, 2019 at 4:31 PM

The Dow took a beating today, following China's retaliatory tariff hikes on $60 billion in U.S. goods. The index fell over 600 points by the end of the day, and marked its worst one-day percentage drop since early January. Tech and trade-sensitive stocks like Boeing (BA) were some of the hardest hit, and an inverted yield curve once again fueled fears of a recession. As such, the S&P and Nasdaq finished in the red, too -- with the latter suffering its worst day since December. 

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

  • 2 crypto stocks immune to today's sell-off.
  • Options bulls still have hope for this beaten-down pharma stock.  
  • The tech stock sending options bears into a frenzy ahead of earnings. 
  • Plus, BABA call options pop off; the drug stock expected to double; and a post-earnings plummet for Jumia. 

The Dow Jones Industrial Average (DJI - 25,324.99) lost 617.4 points, or 2.4%, in today's trading. Only Procter & Gamble (PG) eked out a win, with a 0.1% gain, while the other 29 components were swimming in red ink at the close, with Apple (AAPL) at the bottom of the list on a 5.8% loss.   

The S&P 500 Index (SPX - 2,811.87) lost 69.5 points, or 2.4%, for its worst day since January, while the Nasdaq Composite (IXIC - 7,647.02) ended 269.9 points, or 3.4%, lower.

The Cboe Volatility Index (VIX - 20.55) rose 4.51 points, or 28.1%, marking its biggest one-day jump since October.

Closing Indexes Summary May 13

NYSE and Nasdaq Stats May 13

5 Items on our Radar Today

  1. Facebook will be lifting its hourly minimum wage for contractors located in high-cost areas, to as much as $20 from $15. The wage hike will extend to those living in New York, San Francisco, Seattle, and Washington, D.C. (CNBC)
  2. Hollywood actress and singer Doris Day passed away today. The Oscar nominee died in her home in Carmel, California, at the age of 97, after a bout of pneumonia. (Reuters)
  3. China's Alibaba saw a surge in call volume, despite the sell-off. 
  4. This drug stock might double, according to one analyst. 
  5. The newly minted e-tail stock getting flack after earnings. 

Corporate Earnings May 13

Unusual Options Activity May 13

Data courtesy of Trade-Alert

Gold Hits Monthly Highs on Safe-Haven Demand

Today's trade tensions overshadowed concerns surrounding attacks on oil tankers in the Middle East, sending the June-dated commodity down 62 cents, or 1%, to land at $61.04 a barrel. 

Gold ended up again, hitting new one-month highs, as trade-war worries fueled a flight to "safe havens." June-dated gold enjoyed a $14.40, or 1.1%, spike today, to land at $1,301.80 an ounce.

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