Chip Stocks Sink Nasdaq Amid Huawei Drama

Lingering U.S.-China trade tensions didn't help stocks

Lillian Currens
May 20, 2019 at 4:29 PM
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The Dow continued its journey lower today, as tech stocks sold off. Of note, several chipmakers took a beating, as Google parent Alphabet (GOOGL) and a handful of U.S. semiconductor makers cut ties with Huawei, following President Donald Trump's recent blacklist of the Chinese firm. This, as hopes for a trade deal between the U.S. and China dimmed last week on reports that negotiations have stalled. Against this backdrop, the S&P finished lower, and the tech-rich Nasdaq took the biggest hit.

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

The Dow Jones Industrial Average (DJI - 25,679.90) lost 84.1 points, or 0.3%, in today's trading. Ten of the 30 blue chips finished higher, with UnitedHealth (UNH) leading leading the pack, once again, on a 1.9% pop, and Apple (AAPL) dropping to the bottom on a 3.1% drop. 

The S&P 500 Index (SPX - 2,840.23) ended 19.3 points, or 0.7%, lower, and  the Nasdaq Composite (IXIC - 7,702.4) ended 113.9 points, or 1.5%, lower.

The Cboe Volatility Index (VIX - 16.31) was 0.4 point, or 2.2%, higher. 

Closing Indexes Summary May 20

NYSE and Nasdaq Stats May 20

5 Items on our Radar Today

  1. Yet another modern-day beverage was spotted in a key scene during last night's Game of Thrones series finale. The drinks in question -- plastic water bottles at the stars' feet -- had fans taking to Twitter in droves. HBO, so far, has declined to comment. (CNBC)
  2. The termination of two employees of the pro-Kremlin Russian newspaper Kommersant, following a report that a shift in President Vladimir Putin's parliament was on the horizon, had 10 journalists and a senior editor of the publication putting in their resignations today.  (Reuters)
  3. Canada Goose stock's newest bullish backer
  4. Puts are popping on this retail stock ahead of earnings. 
  5. The India ETF surging amid election expectations. 

Corporate Earnings May 20

Unusual Options Activity May 20

Data courtesy of Trade-Alert

Oil Higher on OPEC Production Cuts

Oil for June delivery ended 34 cents, or 0.5%, higher, at $63.10 a barrel, after the Organization of the Petroleum Exporting Countries (OPEC) said that it would likely maintain its production cuts. Tensions in the Middle East created even more tailwinds for the commodity. 

Gold was back up again as traders backed away from a shaky stock market. June-delivered gold rose $1.60, or 0.1%, to end at $1,277.30 an ounce.


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