Stocks Bounce as Fed Minutes, Trade Talks Loom

US. and China trade officials will meet tomorrow in Washington, D.C.

by Patrick Martin

Published on Oct 9, 2019 at 11:52 AM

The Dow Jones Industrial Average (DJI) is on the rebound today, up triple digits on renewed optimism that a trade deal with China is imminent. A day before the two superpowers are set to hold high-level talks in Washington, D.C., a Bloomberg report indicated China is open to a partial trade deal, provided the U.S. doesn't impose more tariffs. The S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are also enjoying outsized gains, shaking off the latest Job Openings and Labor Turnover Survey (JOLTS), which showed job openings fell in August to an 18-month low. Investors will also be eyeing the release of the Fed's September meeting minutes at 2 p.m. ET. 

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

  • Analyst: Roku sales could triple by 2022.
  • Short sellers are cheering this healthcare stock's collapse.
  • Plus, put traders pile on JNJ after court ruling; a C-suite shakeup at U.S. Steel; and American Airlines delays its 737 MAX return.

Midday Market Stats Oct 9

One name seeing heightened options volume today is Johnson & Johnson (NYSE:JNJ), with 21,000 puts crossing the tape so far -- four times the average intraday amount, and volume pacing for the 98th percentile of its annual range. Most of this attention is on the weekly 10/11 130- and 126-strike puts, where new positions are being opened. The Dow stock is down 2.3% to trade at $128.78, at last check -- the only blue chip in the red so far -- after a court ruling ordered the company to pay $8 billion in a case over male breast growth related to its antipsychotic drug, Risperdal.

United States Steel Corporation (NYSE:X) stock is one of the worst stocks on the New York Stock Exchange (NYSE) today, down 6.4% to trade at $10.31. This comes after the steel company outlined plans to cut costs, while Chief Financial Officer (CFO) Kevin Bradley announced his resignation and transition into an advisor role. X is now down 42.6% in 2019, and earlier touched a new three-year low of $9.93.

One of the better stocks on the S&P 500 today is American Airlines Group Inc (NASDAQ:AAL), up 2.5% to trade at $26.90, after the company delayed its 737 MAX return date to Jan. 16. The company said it will provide the fiscal impact of that on its earnings call. AAL has recently found a floor at the $24 level, while today's rally could stall at its 40-day moving average.

MMC Daily Chart AAL


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