Dow Swings Lower as Trade Optimism Fades

Investors weighed the latest U.S.-China trade buzz

Managing Editor
Sep 19, 2019 at 4:28 PM
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The Dow finished lower today, erasing gains in late-afternoon trading as Wall Street monitored ongoing U.S.-China trade talks. The blue-chip index traded up over 125 points at session high thanks to upbeat economic data and a big day for Microsoft (MSFT), but swung lower after a tweet from the editor of China's Global Times said Beijing was "not as anxious to reach a deal" as the U.S. anticipated. Separately, President Donald Trump's advisor to China spoke with the South China Morning Post, indicating the U.S. is prepared to escalate the trade war if a deal is not reached. The S&P 500 and Nasdaq both finished higher, with the former snagging its third straight win. 

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

  • This CyberArk stock bull signal has never been wrong.
  • One put trader is targeting heavier losses for Hong Kong stocks.
  • Plus, a rallying pot stock; Skyworks calls hot; and put buyers blitz gold ETF.

The Dow Jones Industrial Average (DJI - 27,094.52) recorded a 52.6-point, or 0.2%, loss. MSFT had the best day of the 13 blue-chip gainers, finishing up 1.8%, while Walt Disney (DIS) led the 17 laggards with its 2.6% drop.

The S&P 500 Index (SPX - 3,006.79) tacked on 0.06 point, while the Nasdaq Composite (IXIC - 8,182.88) closed up 5.5 points, or 0.07%.

The Cboe Volatility Index (VIX - 14.05) shed 0.1 point, or 0.7%.

Closing Indexes Sept 19

NYSE and Nasdaq Sept 19

5 Items on our Radar Today

  1. Home rental company Airbnb is planning to go public next year, it said in a statement. No other details were provided regarding the initial public offering (IPO), but the event will likely be one of the bigger names to enter the market in 2020. (Reuters)
  2. Mortgage rates rose for the second week in a row last week. The 30-year fixed-rate mortgage rose 13 basis points, only its 11th weekly gain in 2019. The increase slightly offsets an unexpected rise in existing home sales in August, per data released earlier in the day. (MarketWatch)
  3. This oversold pot stock got a much-needed surge today. 
  4. Skyworks calls have been all the rage during the stock's sell-off.
  5. Options traders are targeting a big pullback for this gold ETF.

Corporate Earnings Sept 19

 Unusual Options Activity Sept 19

Data courtesy of Trade-Alert

Oil Pares Gains as Gasoline Spikes

Oil slightly rose today, but pared earlier gains after news a Texas refinery would shut down due to flooding. While October-dated crude futures added 2 cents to settle at $58.13 per barrel, though, October gasoline futures spiked 2.6% to $1.7007 a gallon.

Gold snapped a three-day winning streak today, amid uncertainty over the Fed's future monetary policy moves. Gold for December delivery shed $9.60, or 0.6%, to settle at $1,506.20 an ounce.

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