Dow Nosedives After Trump Tells Companies to Ditch China
No one's quite sure yet what the President's tweets could mean in reality, however
It was a wild trading session for U.S. stocks. Traders early on were reacting to the newest tariff retaliation from China, which prompted tweets from President Donald Trump ordering American companies to find "an alternative to China." Huge losses from tech stocks like Apple (AAPL) and Intel (INTC) buried the Dow as a result, while the S&P and Nasdaq suffered, too. This all came amid the Jackson Hole symposium, where Fed Chair Jerome Powell said the central bank will use monetary policy to keep the economic expansion going, but conceded the U.S.-China dispute is a "new challenge."
Continue reading for more on today's market, including:
2 retail stocks at new lows. Chegg option trade could offer almost 200% upside. Plus, a big bull call on Nike; Salesforce's post-earnings trading; and the shoe stock pullback to buy.
The Dow Jones Industrial Average (DJI - 25,628.90) got blown away for a 623.3-point, or 2.4%, loss. AAPL shares paced the 29 Dow components that closed with losses, down 4.6%. Boeing (BA) was the only blue chip to end higher, up 0.5%. With today's loss, the Dow swung into the red for the week, closing down about 1%.
The S&P 500 Index (SPX - 2,847.11) lost 75.8 points, or 2.6%, while the Nasdaq Composite (IXIC - 7,751.77) dropped 239.6 points, or 3%. The SPX fell 1.5% on the week, while the Nasdaq gave up 1.8% amid heavy losses in FAANG and chip stocks.
The Cboe Volatility Index (VIX - 19.87) rose 3.2 points, or 19.1%, to gain 7.6% from the previous Friday's close.
5 Items on our Radar Today
Someone in Illinois just died of lung issues potentially due to vaping. This comes a week after the Center for Disease Control (CDC) said it was investigating a number of lung illnesses potentially related to e-cigarettes. (Reuters)If China's newly proposed tariffs go into effect, automakers Tesla (TSLA) and Ford (F) could be hit hard. The companies are the two top sellers of U.S. vehicles in China. (CNBC)Today's big bull call on Nike. Inside's Saleforce.com's post-earnings session. Why bulls should buy the Skechers pullback.
Data courtesy of Trade-Alert
Oil Falls, Gold Jumps
Oil prices fell alongside stocks today. October-dated crude futures finished down $1.18, or 2.1%, at $54.17 per barrel, putting their weekly losses at roughly 1.2%.
Gold prices jumped amid the economic and market anxiety. December gold was up $29.10, or 1.9%, to settle at $1,537.60 per ounce, hitting fresh six-year highs. The precious metal grabbed a weekly win of 0.9%.