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Dow Snaps Win Streak Despite Big Bank Earnings

Trump cast doubt on U.S.-China trade negotiations

Jul 16, 2019 at 4:29 PM
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A strong post-earnings showing from big banks Goldman Sachs (GS) and JPMorgan Chase (JPM) helped send the Dow to a new record high today. But while the blue-chip index achieved this milestone, it closed in the red to leave its win streak at four. The S&P and Nasdaq, meanwhile, briefly traded in positive territory, but eventually closed lower -- the former snapping its own daily winning streak -- after President Donald Trump said at a cabinet meeting the U.S. and China have "a long way to go" in trade negotiations, and threatened tariffs on more Chinese goods.

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

  • 2 reasons contrarians should check out Roku stock.
  • This China ETF is facing a tough chart challenge following a G-20 pop, according to founder and CEO Bernie Schaeffer.
  • Netflix options are pricing in a volatile earnings reaction.
  • Plus, Trump's latest FAANG target; a small-cap stock expected to double; and how Alcoa options traders are positioned ahead of earnings.

The Dow Jones Industrial Average (DJI - 27,335.63) hit a record intraday high of 27,398.68, before settling down 23.5 points, or 0.09%. Intel (INTC) led the 20 decliners with its 1.9% loss, while Dow (DOW) paced the 10 advancers with its 2.7% gain.

The S&P 500 Index (SPX - 3,004.04) shed 10.3 points, or 0.3%, while the Nasdaq Composite (IXIC - 8,222.80) dropped 35.4 points, or 0.4%.

The Cboe Volatility Index (VIX - 12.86) added 0.2 point, or 1.4%.

Closing Indexes Summary July 16

NYSE and Nasdaq Stats July 16

5 Items on our Radar Today

  1. Tesla (TSLA) said it is streamlining its product line in order "to make purchasing [its] vehicles even simpler." This means the electric automaker is dropping its lowest-priced Model X sport utility vehicle and Model S sedan, now offering a choice between "Long Range" and "Performance." This also brings the starting price for the two vehicles up to $84,990 and $79,990, respectively. (Reuters)
  2. Fed Chair Jerome Powell said at a speech to the Bank of France today that the central bank believes inflation picked up in June, per the core personal consumption expenditure (PCE) price index. However, Powell noted inflation pressures "remain muted." (MarketWatch)
  3. Trump took aim at another FAANG name via Twitter.
  4. A small-cap stock expected to double.
  5. How Alcoa options traders are positioned ahead of earnings.

Corporate Earnings July 16

Unusual Options Activity July 16

Data courtesy of Trade-Alert

Oil Hit By U.S.-Iran Buzz

Oil prices plunged after U.S. Secretary of State Mike Pompeo said Iran has signaled willingness to negotiate on its nuclear missile program. August-dated crude fell $1.96, or 3.3%, to close at $57.62 per barrel.

A stronger U.S. dollar pressured gold prices today. At the close, gold for August delivery was down $2.30, or 0.2%, at $1,411.20 an ounce.

 

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