Stocks Swing Higher on U.S.-China Trade Buzz
Morgan Stanley earnings weighed in early trading
Stocks started the day in negative territory, thanks to a dismal earnings report from Morgan Stanley (MS) and reports of a potential U.S. investigation into Chinese tech firm Huawei. However, the major indexes swung higher in afternoon trading, after a Wall Street Journal report suggested the U.S. is considering lifting tariffs on China to accelerate a potential trade deal. While the Dow, S&P 500, and Nasdaq finished off their intraday peaks after the Treasury Department refuted the report, all three closed higher for a third straight session.
Continue reading for more on today's market, including:
Why short-term bulls should target this Dow stock.Buyout buzz had Skechers options running hot.The best and worst stocks of MLK week.Plus, FAANG news lifts Fossil; 2 chips stocks with fresh "buy" ratings; and Cars.com could be up for sale.The Dow Jones Industrial Average (DJI - 24,370.10) was up 267 points at its intraday peak, before settling with a 162.9-point, or 0.7%, gain. DowDuPont (DWDP) paced the 24 advancers with its 3% climb, while Home Depot (HD) led the six decliners with its 1.2% drop.
The S&P 500 Index (SPX -2,635.96) added 19.9 points, or 0.8%, for a third straight close above its 40-day moving average, while the Nasdaq Composite (IXIC - 7,084.46) rose 49.8 points, or 0.7%.
The Cboe Volatility Index (VIX - 18.06) shed 1 point, or 5.1%, for its lowest settlement since Dec. 3.
5 Items on our Radar Today
The Food and Drug Administration (FDA) said it is streamlining the labeling process for naloxone, a prescription drug used to treat opioid overdoses, in order to encourage companies to develop over-the-counter versions of the costly treatment. In a statement, FDA Commissioner Scott Gottlieb said, "Increased availability of naloxone for emergency treatment of overdoses is an important step." (CNBC)President Donald Trump told U.S. House Speaker Nancy Pelosi to fly commercial for her planned trip to Belgium, Egypt, and Afghanistan, citing the partial government shutdown in a letter to the California Democrat. This follows Pelosi's request that POTUS reschedule the State of the Union address as the shutdown creates "security concerns." (Reuters; MarketWatch)A fresh FAANG partnership boosted Fossil stock.These 2 chip stocks nabbed new "buy" ratings today.Cars.com soared on news the company could put itself up for sale.
Data courtesy of Trade-Alert
Oil Falls After OPEC Data
Oil fell today, even as data showed the Organization of the Petroleum Exporting Countries (OPEC) cut production in December. February-dated crude futures gave back 24 cents, or 0.5%, to close at $52.07 per barrel.
Gold gave back a portion of Wednesday's gains following a batch of relatively upbeat economic data. Gold futures for February delivery fell $1.50, or 0.1%, to settle at $1,292.30 an ounce.