Dow Snaps Win Streak on AAPL Dip

Investors continue to cautiously monitor fluctuating U.S.-China trade headlines, too

Deputy Editor
Dec 9, 2019 at 4:30 PM
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The Dow kicked off the week with a triple-digit drop, snapping its three-day win streak. Apple (AAPL) dragged on the blue-chip index, as investors turned cautious ahead of a new round of U.S. tariffs on Chinese goods set to go into effect this Sunday, Dec. 15. Losses were contained, though, following comments from China's Assistant Commerce Minister Ren Hongbin that a partial U.S-China trade deal could be imminent. Elsewhere, the Trump administration and House Democrats are reportedly nearing a deal which would replace the North American Free Trade Agreement (NAFTA) with the United-States-Mexico-Canada Agreement (USMCA).

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

  • Options bulls hold out hope for Peloton stock, despite holiday ad. 
  • These 2 oil stocks could be perfect for options bears right now. 
  • Plus, call traders storm GE, MU, and BABA; Merck stock pops; and the bear signal flashing for FDX stock. 

The Dow Jones Industrial Average (DJI - 27,909.60) lost 105.5 points, or 0.4%. Twelve of the 30 blue chips ended higher, with Home Depot (HD) in the lead on a 1.1% pop, while Apple (AAPL) sunk to the bottom on a 1.4% drop.

The S&P 500 Index (SPX - 3,135.96) fell roughly 10 points, or 0.3%, while the Nasdaq Composite (IXIC - 8,621.83) shed 34.7 points, or 4%. 

The Cboe Volatility Index (VIX - 15.86) added 2.2 points, or 16.5%. 

Closing Indexes Summary Dec 9

NYSE and Nasdaq Stats Dec 9

5 Items on Our Radar Today

  1. Morgan Stanley (MS) announced today that it will be laying off approximately 2% of its employees, specifically those with technology and operations positions. According to reports, this decision has to do with an increasingly uncertain global outlook. (CNBC)
  2. Marijuana name Canopy Growth (CGC) named David Klein, current chief financial officer (CFO) at Constellation Brands (STZ), as its new CEO. Klein will be replacing Mark Zekulin, effective Jan. 14 of next year. (MarketWatch)
  3. 3 stocks being stormed by call traders right now. 
  4. The blue chip making a splash in M&A headlines today.
  5. FedEx stock could be in hot water this holiday season. 

There are no earnings of note today.

Unusual Options Activity Dec 9

Oil Slips Over Demand Concerns 

Oil prices cooled after Friday's surge, as weak economic data out of China had some investors worried about demand, though some of these losses were offset by the potential U.S.-Mexico-Canada trade deal. January-dated crude futures lost 18 cents, or 0.3%, to settle at $59.02 per barrel.  

Gold prices were relatively static today, with traders looking ahead to this week's Fed meeting. February gold futures lost 20 cents, to settle at $1,464.90 an ounce. 

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