Dow Hits One-Month Low on Global Trade Tensions, Fed Fears

Investors are looking toward Trump's EU trade speach, scheduled for later today

Deputy Editor
Aug 2, 2019 at 11:59 AM
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The Dow Jones Industrial Average (DJI) has dropped to a one-month low today, as anxieties over global trade and Fed policy continue to weigh heavily on stocks. After President Donald Trump yesterday announced new tariffs on Chinese goods, the Asian nation responded by threatening countermeasures. In addition, Wall Street is looking ahead to President Trump's speech regarding trade with the European Union (EU) later today. Elsewhere, the July jobs report muddied expectations about future Fed rate cuts, but oil prices are on the rebound, with the front-month contract up 2.7% at $55.37 per barrel. Nevertheless, the Nasdaq Composite (IXIC) and S&P 500 Index (SPX) are on pace for their longest losing streaks since March. 

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

  • Expectations are too high for this drug stock, per J.P. Morgan Securities.
  • Analyst: "Step into weakness" on this stock after earnings
  • Plus, bulls see more upside for MNST ahead of earnings; APHA bounces back on revenue beat; and analysts slam GLUU stock. 

Midday Market Stats Aug 2

A notable amount of bullish activity is surrounding Monster Beverage Corp (NASDAQ:MNST), with options traders likely speculating ahead of the company's earnings report, slated for next week. So far, roughly 1,500 calls have crossed the threshold, three times what's typically seen at this point. It looks like the weekly 8/9 64-strike call is the most popular, with a sizable chunk of contracts being bought to open. This means these traders are betting on more upside for the stock after the company reports next week. Currently, MNST is down 1.2% at $62.69. 

One of the biggest gainers so far today is pot producer Aphria Inc (NYSE:APHA). The equity is trading up 29.4% at $6.73, after the firm reported fiscal fourth-quarter earnings and revenue that exceeded analysts' estimates. The move comes just one day after APHA dipped to an eight-month low of $5.02. Now, the security is testing its footing atop former resistance at the 50-day moving average, eyeing its second close atop the trendline since April. 

APHA CHart Aug 2

Kylie Jenner affiliate Glu Mobile Inc (NASDAQ:GLUU) is one of the worst performers on the Nasdaq today, after issuing disappointing full-year billing guidance. GLUU stock hit a one-year low of $4.30 earlier today, now down 42.6% to trade at $4.35. The news has the brokerage bunch coming out in droves, with price-target cuts from Piper Jaffray, Benchmark, Cowen, Stephens, and Wedbush.

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