Stocks Settle Lower But Score Big Weekly Gains
Apple earnings tipped the scales in the bears' favor
The Dow traded in a range of 500 points on both sides of breakeven today, ultimately ending in the red. While stocks started the session strong on a solid October jobs report, an ugly earnings reaction from FAANG stock Apple (AAPL) ultimately tipped the scales in the bears' favor. In addition, the White House threw a wet blanket on a Bloomberg report that an official trade deal with China is in the works, but President Donald Trump tried to walk it back, telling reporters that the two countries are getting closer to striking an accord.
While it wasn't enough to keep the major market indexes from snapping their three-day win streaks, the Dow wrapped up its best week since June, and the Nasdaq enjoyed its best week since May. The S&P fared even better, notching its best week since March.
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This stock could be a steal before earnings. Analyst: Michael Kors stock is "undervalued."Plus, 2 restaurant stocks moved on earnings; another subpoena for Tesla; and the bank stock analysts say "buy."The Dow Jones Industrial Average (DJI - 25,270.83) closed down roughly 110 points, or 0.4%. It was the Dow's 10th consecutive triple-digit point move. Chevron (CVX) and Exxon Mobil (XOM) led the dozen Dow gainers, advancing 3.2% and 1.6%, respectively, after earnings. AAPL paced the 18 decliners with a 6.6% drop. For the week, the Dow gained 2.4%.
The S&P 500 Index (SPX - 2,723.06) fell 17.3 points, or 0.6%, while the Nasdaq Composite (IXIC - 7,356.99) gave up 77.1 points, or 1%. For the week, the SPX gained 2.4%, and the Nasdaq gained 2.7%.
The Cboe Volatility Index (VIX - 19.51) edged 0.2 point, or 0.9%, higher. The "fear index" dropped 19.3% this week -- its steepest one-week loss since March.
5 Items on our Radar Today
Amazon plans to limit its holiday hiring in favor of robots, according to one Citi analyst. The company -- the new headquarters of which could bring 50,000 new jobs -- will take on only 100,000 temporary hires this holiday season, a 17% decrease from last year. (CNBC) U.S. Secretary of State Mike Pompeo announced the United States' decision to permit eight unnamed importers to continue purchasing Iranian oil, for the time being. This news comes in the wake of restored Iranian sanctions, meant to curtail the country's nuclear and missile programs. (Reuters) Restaurant stocks Shake Shack and El Pollo Loco took a sharp dive after earnings.Tesla stock was on the move after another SEC subpoena. Why analysts are upgrading this big-cap bank stock to a "buy."
Data courtesy of Trade-Alert
Gold Futures Drop on Strong U.S. Dollar
Oil prices fell again today, as the U.S. announced plans to issue temporary immunity to eight undisclosed jurisdictions from buying Iranian oil. Oil for December delivery dipped 55 cents, or 0.9%, to end at $63.14 per barrel. For the week, black gold shed 6.6%, making this its fourth consecutive weekly loss.
December gold futures fell $5.30, or 0.4%, today, ending at $1,233.30 an ounce, after positive jobs data strengthened the U.S. dollar. It closed the week 0.2% lower.