Stocks Sell Off on Troubling Trade Headlines
Oil prices are pulling back today
The Dow Jones Industrial Average (DJI) is sharply lower at midday. Global economic concerns initially sent the index down triple digits, and losses were exacerbated after White House economic advisor Larry Kudlow told Fox Business there is "sizable difference" between the U.S. and China on any sort of trade deal. Additionally, a CNBC report suggested a meeting between President Donald Trump and Chinese leader Xi Jinping is unlikely to happen ahead of a March 1 trade deadline. Elsewhere, investors are digesting a sharp drop in weekly jobless claims, while March-dated crude futures are down 3.2% at $52.24 per barrel.
Continue reading for more on today's market, including:
Chipotle stock is surging after earnings.This drug stock is down 65% today.Plus, pre-earnings bulls try on Skechers; GRUB buried by earnings once again; and Cardinal Health climbs past a key trendline.
There's notable options activity surrounding Skechers USA Inc (NYSE:SKX) ahead of the shoe retailer's fourth-quarter earnings report, due after the close tonight. More than 5,400 calls have changed hands, four times the average intraday amount. The weekly 2/8 28-strike calls are the most popular, and it looks like new positions are being purchased. SKX is down 1% to trade at $27.40 today, but has already gained 21% in 2019.
GrubHub Inc (NYSE:GRUB) is one of the worst stocks on the New York Stock Exchange (NYSE) today, down 18.4% to trade at $68.48, though well off its earlier annual low of $66.62. The meal delivery company's fourth-quarter earnings and sales missed estimates, thanks to heavy competition from Amazon Restaurants and Uber Eats. GRUB is known for its volatile earnings history, and has now erased its gains from 2019.
Cardinal Health Inc (NYSE:CAH) is up 6.9% to trade at $54.20, after the healthcare giant's fiscal second-quarter earnings beat expectations. The company cited increased strength from its pharma business as a catalyst for the upbeat report. CAH now boasts a 20% gain in 2019, and is set to close above its 200-day moving average for the first time since early December.
