Stocks Finish Lower After China Headlines Sour

A China trade delegation cut its trip to U.S. farms

Managing Editor
Sep 20, 2019 at 4:29 PM
facebook X logo linkedin

The Dow traded in a 268-point range on quadruple-witching expiration, eventually slumping to a triple-digit loss. U.S.-China trade headlines drove today's price action, with stocks initially rising after President Donald Trump revealed a lengthy list of Chinese goods exempt from tariffs. However, the Dow pivoted sharply lower in afternoon trading on news a Chinese trade delegation canceled its visit to U.S. farms in Montana, while Trump told reporters he doesn't need a trade deal with China before next year's presidential election. The S&P 500 and Nasdaq turned lower with the Dow, with all three indexes logging their first weekly loss in a month.

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

  • Why General Electric puts could pay off big.
  • 2 stocks that were on analysts' radar today.
  • Plus, Ferrari options hit high gear; analyst turns cautious on Netflix earnings; and last-minute FIT options activity.

The Dow Jones Industrial Average (DJI - 26,935.07) recorded a 159.7-point, or 0.6%, loss. Merck (MRK) had the best day of the 10 blue-chip gainers, finishing up 1.4%, while Intel (INTC) led the 20 laggards with its 1.6% drop. For the week, the Dow shed 1%.

The S&P 500 Index (SPX - 2,992.07) logged a 14.7-point, or 0.5%, loss, while the Nasdaq Composite (IXIC - 8,117.67) closed down 65.2 points, or 0.8%. The S&P 500 lost 0.5% on the week, while the Nasdaq gave back 0.8%.

The Cboe Volatility Index (VIX - 15.32) gained 1.3 points, or 9%. It turned in an 11.5% weekly win.

closing indexes sept 20

NYSE and Nasdaq Sept 20

5 Items on our Radar Today

  1. Amid a growing backlash, e-cigarettes were discontinued by Walmart (WMT) today. Walmart cited "regulatory complexity" and "uncertainty" around the industry, which is in hot water amid a lung disease outbreak that has killed at least eight people. (CNBC)
  2. The week has come and gone, and General Motors (GM) has yet to reach a contract resolution with the United Auto Workers (UAW) union. Around 48,000 UAW GM workers have been on strike since Monday, and today thousands of Canadian GM auto workers were furloughed. (CNBC)
  3. Ferrari's options volume hit high gear today. 
  4. Why one analyst is already wary of Netflix's earnings report next month.
  5. Behind the mad dash for Fitbit calls.

There are no earnings to report today.

 Unusual Options Activity Sept 20

Data courtesy of Trade-Alert

Oil, Gold Log Big Weekly Wins

Oil fell today, but still held on to strong weekly gains. Ahead of expiration, October-dated crude futures shed 4 cents to settle at $58.09 per barrel. For the week, black gold gained 5.9%, it's biggest weekly gain since June. 

Gold bounced back today, as safe-haven demand increased in the wake of President Trump's announcement of Iran sanctions. Gold for December delivery added $8.90, or 0.6%, to settle at $1,515.10 an ounce. For the week, gold gained 1%, its first win in four weeks.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI