Stocks Drop as Trade, Impeachment Woes Weigh
The Dow was down more than 160 points at its session lows
After trading down over 160 points at its session lows, the Dow staged a late-day rebound -- and briefly explored positive territory -- before ultimately ending lower. Stocks pared their losses in the eleventh hour, thanks to positive trade comments from Chinese foreign minister Wang Yi, who said the U.S. has shown goodwill by waiving tariffs on products. Nevertheless, the Dow ended in the red with the S&P 500 and Nasdaq, with the tech-heavy latter under pressure amid reportsthe White House may not extend waivers to Huawei's U.S. suppliers. Investors are also still digesting the whistleblower complaint released this morning, which has put renewed pressure on President Donald Trump amid impeachment inquiries.
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Options traders are loving this new McDonald's partner.This Schaeffer's straddle trade locked in 110% profits in under two weeks.Rite Aid and Conagra Brands soared after earnings today.Plus, 2 gold stocks in focus; bearish bets on Skyworks stock; and another bull note for Target stock.The Dow Jones Industrial Average (DJI - 26,891.12) recorded a 79.6-point, or 0.3%, loss. Nike (NKE) once again had the best day of the 12 blue-chip gainers, finishing up 1.5%, while UnitedHealth (UNH) once more led the 18 laggards with its 3% loss.
The S&P 500 Index (SPX - 2,977.62) logged a 7.3-point, or 0.2%, loss, while the Nasdaq Composite (IXIC - 8,030.66) closed down 46.7 points, or 0.6%.
The Cboe Volatility Index (VIX - 16.07) tacked on 0.1 point, or 0.7%.
5 Items on our Radar Today
In the latestdata point that signals a rallying housing sector, pending home sales in the U.S. increased by a larger-than-expected margin last month. The National Association of Realtors index rose 1.6% in August, handily topping the estimated 0.9% gain, thanks to a drop in mortgage rates. (Reuters)On the other hand, the final reading of second-quarter gross domestic product (GDP) confirmed at an annual rate of just 2%.The ongoing trade fight with China overshadowed a bump in consumer spending. (MarketWatch)These 2 gold stocks could catch bears off-guard.Bearish betting on Skyworks stock ramped up today. Cowen is "incrementally more upbeat" toward Target stock.
Data courtesy of Trade-Alert
Oil Logs Third Straight Loss
Oil prices fell for the third straight day today, but pared sharper losses from earlier after the U.S. agreed to deploy military equipment to Saudi Arabia, following attacks on oil facilities earlier this month. November-dated crude futures shed 8 cents, or 0.1%, to settle at $56.41 per barrel.
Gold rebounded today in the wake of the tame GDP data from the morning. Gold for December delivery added $2.90, or 0.2%, to settle at $1,515.20 an ounce.