Roller Coaster Week Defined by Trade Headlines, Jobs Report

The Dow, S&P 500, and Nasdaq both logged winning and losing streaks this week

by Patrick Martin

Published on Dec 6, 2019 at 12:22 PM

The first week of December was a wild one on Wall Street, with the Dow making triple-digit moves on four separate occasions. Ahead of the Dec. 15 deadline for the U.S. add tariffs on more Chinese goods, investors reacted to a wide range of trade rhetoric from both sides. Stocks took a hit early in the week after President Donald Trump suggested he may wait until after the 2020 election to pursue a trade deal. But rising oil prices, upbeat trade comments from China, and a blowout November jobs report turned things around later in the week. Through it all, only the S&P 500 is on pace to secure a weekly win, while the Dow and Nasdaq remain slightly in the red despite pacing to close the week on three-day win streaks. 

Nike Stays Hot, Options Traders Target Twitter

Several blue-chips and social media names were in focus this week. Walt Disney (DIS) and Twitter (TWTR) both drew a frenzy of weekly call traders targeting a short-term breakout. Retail icon Nike (NKE) continued its trek back to record highs, with Goldman Sachs adding the stock to its conviction list. FAANG giant Facebook (FB) received a slew of analyst attention too, with call options flashing in response. 

Travel Stocks in Focus

As the holidays heat up, so too have travel stocks. This put Expedia (EXPE) in the cross-hairs, which climbed after a C-suite shakeup. And among airliners, call traders targeted JetBlue Airways (JBLU), although a less-than-stellar sector update weighed on Delta Air Lines (DAL). And for those taking the more millennial route to travel, Ride-sharing app Lyft (LYFT) saw its price target cut, while sector peer Uber Technologies (UBER) flashed a dire bearish signal.

M&A Buzz and Breakthroughs in the Biotech Sector

It was a big week for several drug and healthcare names. There was a big M&A in the gene therapy space, while Xenon Pharmaceuticals (XENE) announced a partnership to develop epilepsy treatments. And later in the week, SunTrust Robinson doled out a bull note to an oncology stock, while Cassava Sciences (SAVA) touted a breakthrough in its Alzheimer's treatment

Oil, Software Stocks Also Make Moves

The uptick in oil prices meant heavy options trading for this oil exchange-traded fund (ETF). And speaking of oil, Schaeffer's Senior Quantitative Analyst Rocky White took a look at how the Dow is doing priced as oil

It seemed like every day a software stock was making headlines. Salesforce.com (CRM) posted an earnings beat, and analysts responded accordingly, and options traders flocked to Cloudera (CLDR) ahead of its own earnings report. Netflix rival Roku (ROKU) picked up a downgrade amid its recent consolidation. 

Fed Meeting On Tap

Next week will mark the final five trading days leading up to the Dec. 15 deadline for the tariffs. As if that's not enough for investors to monitor, there will be retail earnings and a mid-week Fed meeting to look out for. Amidst all of these events, we outlined the best way to manage volatility risk right now. 


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