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Stocks Pivot Lower After Surprise Trump Announcement

The S&P 500 and Nasdaq surrendered their three-day win streak

Digital Content Manager
May 28, 2020 at 4:28 PM
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The Dow seemed ready to log its third consecutive day in the black on Thursday, but pivoted lower in the final hour of trading to finish almost 150 points in the red. Fueling the dramatic dive is news of a surprise announcement that U.S. President Donald Trump is holding a press conference regarding China tomorrow. The blue-chip index's almost 350-point reversal from its session highs comes amid lingering apprehension surrounding a bill passed by China's National People's Congress that will compromise some of Hong Kong's autonomy from mainland China.

For most of the day, investors pushed past another terrible week of jobs data amid hope that the worst of the coronavirus-related damage to the economy is now in the rear-view. But the S&P 500 and Nasdaq both suffered the same last-minute U-turn lower as well, snapping respective three-day win streaks in the process.

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

  • The tech stock buzzing after its Q2 report.  
  • Why traders should dig up this gold stock while it's still on sale. 
  • Plus, AAL's jobs update; WDAY picks up bull notes; and DG hits fresh highs. 

The Dow Jones Industrial Average (DJI - 25,400.64) lost 147.6 points, or 0.6% for the day. Fourteen of the index members ended higher, led by Pfizer (PFE) which added 2.1%, while Goldman Sachs (GS) saw the biggest loss of the blue chips, down 4%.  

The S&P 500 Index (SPX - 3,029.73) ended 6.4 points, or 0.2% lower, while the Nasdaq Composite (IXIC - 9,368.99) ended down 43.4 points, or 0.5%.

The Cboe Volatility Index (VIX - 28.59) gained nearly 1 point or 3.5%. 

closing summary may 28

nyse nasdaq may 28

5 Items on Our Radar Today

  1. The House of Representatives passed a bill today that will ease restrictions for its small business aid program in response to COVID-19. Measures passed as part of the bill will allow companies to defer payroll taxes, push back the deadline to rehire workers to June 30, and extend the time frame these companies have to use their relief funds from two to six months, among other changes. (CNBC)
  2. President Trump is planning on signing a bill that would limit the legal protections that federal law currently offers to social media companies. This is in response to Twitter's (TWTR) fact-check notice applied to Trump's twitter account on Tuesday regarding voter fraud.  (MarketWatch)
  3. A jobs update sent American Airlines stock spiraling today. 
  4.  Analysts and options bulls cheered on Workday's first-quarter revenue beat
  5. Unpacking one discount retail stock's fresh highs. 

earnings may 28

unusual options may 28

Data courtesy of Trade-Alert

Global Tensions Drive Gold Higher; Drop in Supply Gives Oil a Boost

U.S.-China tensions are continuing to drive the price of gold up, as anxious investors turn back towards the safe-haven commodity. Gold for August delivery added $1.50, or 0.1%, to settle at $1,728.30 an ounce.

Oil futures pared earlier losses to end with a strong finish on Thursday, as investors cheered a decline in crude inventories at the futures delivery hub in Cushing, Oklahoma. Oil for July delivery tacked on 90 cents or 2.7% to settle at $33.71 per barrel. 

 

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