Dow Suffers Worst Week of 2019 Amid New Tariff Threats

It was also the worst month of the year for the stock market indexes

Deputy Editor
May 31, 2019 at 4:32 PM
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The Dow ended more than 350 points lower, after President Donald Trump's surprise tariff threats against Mexico. In a series of tweets, the president said he would impose 5% tariffs on Mexican imports starting June 10, and will increase those tariffs until Mexico stops illegal immigration. Auto stocks, especially General Motors (GM), took a major hit on the news, as well as FAANG name Amazon (AMZN). Against this backdrop -- and considering the U.S. is already in a trade dispute with China -- the Dow extended its weekly losing streak to six, and the S&P ended below its 200-day moving average for the first time since March, with all three stock market indexes suffering their worst month of 2019. 

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

  • One of the summer's worst chip stocks
  • This energy stock could heat up, says signal. 
  • Plus, QCOM's price-target cut; one stock that took a beating on trade news; and a bull signal flashing for CIEN before earnings. 

The Dow Jones Industrial Average (DJI - 24,815.04) lost 354.8 points, or 1.4%, in today's trading, for its lowest close since January. The index was down 6.7% for the month, and 3% for the week. McDonald's (MCD) was today's only winner with a 0.1% gain, while Verizon (VZ) came in last with a 4.4% plummet.

The S&P 500 Index (SPX - 2,752.06) fell 36.8 points, or 1.3%, while the Nasdaq Composite (IXIC - 7,453.15) fell 114.6 points, or 1.5%. The former was down 2.6% for the week, and 6.6% for the month, and the latter dropped 2.4% for the week, and 7.9% for the month. 

The Cboe Volatility Index (VIX - 18.71) rose 1.4 points, or 8.2%, today, with an 18% weekly gain. For the month, the "fear index" rallied 42.8% -- its biggest monthly gain of 2019.

Closing Indexes Summary May 31

NYSE and Nasdaq Stats May 31

5 Items on our Radar Today

  1. At a hearing today, cannabidiol, more commonly known as CBD, was under scrutiny from the Food and Drug Administration (FDA). At today's hearing, the FDA sought more data on CBD, which is being added to everything from drinks to makeup. (CNBC)
  2. The British Medical Journal just published two new studies linking processed food and mortality risk. In one study from the University of Paris, researchers followed over 105,000 people 18 and older for five years, and found that those with diets higher in sugar, saturated fats, and preservatives were more at risk for cardiovascular-related health issues. (Reuters)
  3. Behind Qualcomm stock's most recent bear note. 
  4. The beer stock hit by Trump's latest tariff threats
  5. Ciena stock just flashed a buy signal before earnings. 

Corporate Earnings May 31

Unusual Options Activity May 31

Data courtesy of Trade-Alert

Oil Suffers First Monthly Loss This Year; Gold Hits Seven-Week Highs

July-dated oil futures dipped to their lowest close in roughly thee months, down $3.09, or 5.5%, to end at $53.50 per barrel, as anxieties over global trade bubbled. The commodity was down 8.7% on the week, and clocked its first month in the red this year, with a 16.3% loss -- its worst month since November. 

With global tensions high, investors sought safety in gold, which notched its third straight win today. In fact, August-delivered gold rose $18.70, or 1.5%, to settle at $1,311 an ounce, marking the yellow metal's highest close since early April. It finished 2.1% higher for the week, and 2% higher for the month.

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