China vowed to 'hit back forcefully' against additional U.S. tariffs
U.S. stocks continue to fall due to growing fears of a trade war with China, sinking the Dow Jones Industrial Average (DJI) more than 350 points. Not only did President Trump propose an additional $100 billion in tariffs on Chinese imports, but Beijing has already promised to "hit back forcefully." This news has Caterpillar (CAT) and Boeing (BA) near the bottom of the Dow once again, while tech stocks also suffer heavy losses. A lackluster nonfarm payrolls report could be adding onto the risk-off backdrop, with the S&P 500 Index (SPX) and Nasdaq Composite (IXIC) turning negative for the week.
Continue reading for more on today's market, including:
- The strike Valeant put traders keep targeting.
- Analyst: 2 defense stocks headed for record highs.
- Plus, NetApp calls hot; the chip stock staring at its worst losing streak in a year; and inside the Incyte sell-off.
One name seeing unusual options activity
is NetApp Inc. (NASDAQ:NTAP), after the company boosted its dividend and the stock received a round of bullish analyst attention. Calls are extremely popular, accounting for the 10 most active strikes, with volume surpassing the daily average already. One of the more popular options is the front-month April 63 call, where new positions are being opened. NTAP stock was last seen trading up 2.1% at $64.23.
Nvidia Corporation (NASDAQ:NVDA) is underperforming again on the Nasdaq, down another 2.1% at $216.70. The semiconductor stock is on pace for a third straight weekly loss -- something we haven't seen in a year -- and its lowest weekly close since early January. Considering the company's heavy exposure to China, the trade tensions have weighed on NVDA shares, which recently sunk below a trendline connecting higher lows since early 2017. The stock is attempting to find support atop its 32-week moving average, though.
Another big Nasdaq loser is
Incyte Corporation (NASDAQ:INCY), after the company's experimental cancer drug failed to work in combination with Merck's (MRK) Keytruda in a study with skin cancer patients. Adding salt to the wound, Guggenheim downgraded the stock to "neutral" from "buy," and several other brokerage firms have cut their price targets. INCY shares have plummeted 18.1% today to trade at $68, earlier hitting a two-year low of $63.81. The biotech has experienced a relentless downtrend since peaking above $150 in March 2017.