Stocks Cool as Home Depot Weighs on Dow
Retail as a whole was weak today
The U.S. stock market struggled today due to weakness in the retail sector. A disappointing earnings release from Home Depot (HD) was the main focus, pulling the Dow off its early record high. The S&P and Nasdaq each pulled back from their own milestones, too, despite a strong session for healthcare stocks. Traders also considered more commentary on the U.S.-China trade fight from President Donald Trump, who said in a Cabinet meeting that he'll raise tariffs on China if the countries can't make a deal.
Continue reading for more on today's market, including:.
Chip stock called a top pick at Morgan Stanley. Yeti nears big level as puts pop. Plus, 2 more retailers that struggled; Lowe's speculators gear up for earnings; and biotech booms on drug data.The Dow Jones Industrial Average (DJI - 27,934.02) closed down 102.2 points, or 0.4%, with half of its 30 components closing in the red. Visa (V) led the winners with a 1.7% advance, and HD's 5.4% drop paced the losers.
The S&P 500 Index (SPX - 3,120.18) dropped 1.9 points, or 0.06%, and the Nasdaq Composite (IXIC - 8,570.66) managed a 20.7-point, or 0.2%, win.
The Cboe Volatility Index (VIX - 12.86) added 0.4 point, or 3.2%.
5 Items on Our Radar Today
People are still looking through a paper released yesterday by former Treasury Secretary Lawrence Summers, which essentially shines a light on the deficiencies in the current tax collection process in the U.S. Numbers from the research suggest the "tax gap" could grow to $7.5 trillion over the next 10 years. (CNBC)The largest coal power plant in the West just closed. The Navajo Generating Station used the last of its coal on Monday, with the company's CEO saying the economics didn't make sense anymore given the price of natural gas and renewable energy sources. (Arizona Republic) 2 stocks caught in the Kohl's headwinds. Options traders take aim at Lowe's before earnings. A British biotech that boomed on drug data.
Oil Prices Fall Again
Oil prices got hit hard again on oversupply concerns. December crude futures fell $1.84, or 3.2%, to close at $55.21 per barrel.
Gold prices got a lift amid the pullback in equities. December gold futures added $2.40, or 0.2%, to close at $1,474.30 an ounce.