Dow Drops Triple Digits as Trade Tensions Flare Up

There is renewed skepticism a "phase one" trade deal will be completed in 2019

by Patrick Martin

Published on Nov 20, 2019 at 4:27 PM

The Dow turned in a triple-digit loss today, dragged lower by reignited U.S.-China trade tensions. A Reuters report indicated a "phase one" trade deal may not be reached until next year. On top of that, Chinese officials are unhappy after the U.S. Senate passed measures supporting Hong Kong protesters. The S&P 500 and Nasdaq also closed in the red, with trade-sensitive and tech stocks incurring the biggest losses. Elsewhere, Wall Street's "fear gauge," the Cboe Volatility Index (VIX) earlier rose to its highest point in over a month.

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

  • This sinking Chinese stock saw heightened options activity today.
  • Nordstrom options popped ahead of earnings tomorrow.
  • Plus, an E*TRADE bear signal; Tilray options traders call a bottom; and behind Urban Outfitter's bad day. 

The Dow Jones Industrial Average (DJI - 27,821.09) closed down 112.9 points, or 0.4%. Boeing (BA) led the nine winners with a 1.1% advance, and Home Depot (HD) paced the 21 losers with a 2.2% drop.

The S&P 500 Index (SPX - 3,108.46) dropped 11.7 points, or 0.4%, and the Nasdaq Composite (IXIC - 8,526.73) turned in a 43.9-point, or 0.5%, loss.

The Cboe Volatility Index (VIX - 12.78) shed 0.1 point, or 0.6%.

us stocks closing summary nov 20

nyse and nasdaq stats nov 20

5 Items on Our Radar Today

  1. U.S. diplomat Gordon Sondland delivered a bombshell of a testimony today at President Donald Trump's impeachment inquiry. Sondland asserted Trump and many members of the administration explicitly ordered him to work with Trump’s personal lawyer Rudy Giuliani in order to pressure Ukraine into political investigations. (Reuters)
  2. Automaker General Motors (GM) is suing Fiat Chrysler (FCAU) for allegedly undermining its negotiations with the United Auto Workers (UAW) union. GM accused Fiat of bribing UAW workers to receive better terms in negotiations. (CNBC)
  3. E*TRADE stock rally may have run out of steam.
  4. Tilray options traders appear to be calling a bottom.
  5. See why analysts and options bears alike piled on Urban Outfitters stock today.

Corporate Earnings Nov 20

unusual options volume nov 20

Oil Rallies on Surprise Drop in Crude Supplies

Oil prices gained ground today, after U.S. crude supplies rose by less than expected. December crude futures added $1.90, or 3.2%, to close at $57.11 per barrel. The new front-month January contract added $1.66, or 3%, to close at $57.01 per barrel.

Gold prices finished slightly lower, with December gold futures shedding 10 cents to close at $1,474.20 an ounce. The most-active contract continued to edge down in electronic trading, after the Fed minutes showed the central bank is upbeat about the U.S. economy.

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