Stocks Boosted by U.S.-China Trade Momentum

The U.S. removed China from its list of currency manipulators

by Patrick Martin

Published on Jan 13, 2020 at 4:31 PM

The Dow kicked off the week with modest gains thanks to the latest U.S.-China trade tailwinds. Ahead of the "phase one" trade deal between the two countries that's expected to be signed on Wednesday, the U.S. removed China from its list of currency manipulating countries. The S&P 500 and Nasdaq both finished in the black as well, with both indexes notching fresh record highs. 

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

  • Options traders focused on these hot stocks today. 
  • Delta Air Lines calls were active ahead of the airliner's earnings.
  • Plus, a bullish signal for Signet Jewelers; IBM downgraded; and a sunny forecast for LULU.

The Dow Jones Industrial Average (DJI - 28,907.05) gained 83.3 points, or 0.3%. Apple (AAPL) led the 21 winners with a 2.1% win, while UnitedHealth (UNH) paced the nine laggards with a 3.1% drop.

The S&P 500 Index (SPX - 3,288.13) added 22.8 points, or 0.7%, while the Nasdaq Composite (IXIC - 9,273.93) finished 95.1 points, or 1%, higher.

The Cboe Volatility Index (VIX - 12.32) shed 0.2 point, or 1.9%.

closing indexes summary jan 13

nyse and nasdaq stats jan 13

5 Items on Our Radar Today

  1. The Democratic presidential field for the 2020 election thinned out today, after Senator Corey Booker dropped out. Booker's campaign said it lacked finances to be able to continue the bid, and the decision comes one day ahead of the latest Democratic presidential debate in Iowa. (Reuters)
  2. U.S. treasury yields rose today, likely in response to upcoming signing of the "phase one" trade deal between the U.S. and China. The 10-year treasury note rose to 1.84%, while the 30-year treasury bond climbed to 2.3%. The trade deal is expected to be signed on Wednesday. (CNBC)
  3. Buy the dip on Signet Jewelers stock.
  4. IBM stock under pressure after another analyst stepped to the sidelines.
  5. An upbeat Q4 forecast kept Lululemon stock hot

unusual options activity jan 13

Data courtesy of Trade-Alert

Oil, Gold Pull Back

Oil fell for the fifth straight session today, as the worries around U.S.-Iran tensions fade. February-dated crude futures lost 96 cents, or 1.6%, to end at $58.08 per barrel, their lowest settlement since Dec. 3.

Gold also extended its slide, as the appetite for safe-haven assets wanes amid U.S.-China trade progress and easing Middle East tensions. February gold futures gave back $9.50, or 0.6%, to end at $1,550.60 an ounce, barely holding above the psychologically significant $1,550 level.

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