Dow Nosedives Nearly 400 Points, Nasdaq Snaps Win Streak

The S&P also turned lower at the close

Deputy Editor
May 19, 2020 at 4:29 PM
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Yesterday's broad-market optimism was short-lived, as the Dow plodded through a day in the red before bottoming out with a 390 point drop at the close. Weighing on the blue-chip index were corporate reports from Home Depot (HD) -- which suffered an earnings miss -- and Walmart (WMT), which initially surged after its first-quarter report before pivoting lower later in the day. Despite positive comments from U.S. officials and Fed Chair Powell, the S&P 500 finished in the red as well, while Nasdaq gave up gains in the final minutes of trading to snap its three-day win streak. 

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

  • Options bulls might want to keep their eyes on this telehealth name
  • The technical signal calling Kroger stock's next bounce. 
  • Plus, some positive data for UAL; CMCSA gets a bear note; and the car stock shaking off an earnings miss. 

The Dow Jones Industrial Average (DJI - 24,206.86) lost 390.5 points, or 1.6% today. Just three index members finished higher, with Intel (INTC) in the lead on a 0.6% win, while Boeing (BA) dropped to the bottom of the 27 losers on a 3.7% plummet. 

The S&P 500 Index (SPX - 2,922.94) shed 31 points for the day, or 1.1%, while the Nasdaq Composite (IXIC - 9,185.10) ended 49.7 points, or 0.5%, lower.

The Cboe Volatility Index (VIX - 30.53) tacked on 1.2 points, or 4.2%.

Closing summary may 19

nyse nasdaq may 19

5 Items on Our Radar Today

  1. The Food and Drug Administration (FDA) appears to have softened its stance on taking the anti-malaria drug hydroxychloroquine for COVID-19 outside of a hospital, after last month's warning that it can pose a risk of serious heart rhythm problems. This comes just one day after U.S. President Donald Trump disclosed he has been taking it daily for over a week to prevent infection. (CNBC)
  2. According to data from the Mortgage Bankers Association, over 4.1 million U.S. homeowners are currently in forbearance as of May 10, making up 8.2% of all mortgages. This number is up from the 7.9% of homeowners in forbearance last week, though this is the smallest increase since March. (MarketWatch)
  3. The airline stock taking off as reservations rise.  
  4. Why Guggenheim is backing away from this big broadcasting stock
  5. One auto stock shaking off an earnings an revenue miss today. 

Earnings May 19

unusual options may 19

Data courtesy of Trade-Alert

Oil Contracts Expire Higher; Gold Gets Boost on Economic Optimism 

Contracting supply and improved demand gave oil futures another boost today, after the black gold explored both sides of the breakeven. June-dated crude, which expired at the end of today's session, added 68 cents, or 2.1%, to settle at $32.50 a barrel.

Gold futures recouped some of yesterday's losses, given a boost by Fed Chair Jerome Powell's apparent willingness to keep propping up the downtrodden U.S. economy. Gold for June delivery settled $11.20, or 0.7% higher to $1,734.40 an ounce.

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