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Dow Ends Higher on Tentative China Trade Optimism

Ahead of this weekend's G-20 summit, Kudlow tempered Trump's tough talk on trade

Digital Content Manager
Nov 27, 2018 at 4:34 PM
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The Dow opened lower today -- pressured in part by losses for tariff target Apple (AAPL) ahead of this weekend's much-anticipated G-20 meeting -- but the index eventually clawed higher after exploring a 334-point range on both sides of breakeven. Traders showed some cautious interest in defensive names after Fed Vice Chair Richard Clarida predicted a likely "gradual policy normalization" in 2019, and National Economic Council Director Larry Kudlow walked back some of President Donald Trump's hawkish China trade talk. Meanwhile, the S&P capitalized on freshly reclaimed chart support in the wake of Monday's rally, extending its lead above the 2,650 half-century level and its 80-week moving average

Continue reading for more on today's market, including:

  • What sparked SAVE's comeback
  • Today's UTX sell-off could be a buying opportunity.
  • Why it's game over for entertainment names TTWO and ATVI. 
  • Plus, ATHN and BIIB get bear notes; UAL stock rallies; and one options trader bets millions on RACE. 

The Dow Jones Industrial Average (DJI - 24,748.73) made gains today, tacking on 108.5 points, or 0.4%. Twenty-one of the 30 Dow stocks were up today, with Verizon (VZ) in the lead with a 2.5% gain and United Technologies (UTX) bringing up the back with a 4.1% loss. 

The S&P 500 Index (SPX - 2,682.20) rose 8.8 points, or 0.3%, while the Nasdaq Composite (IXIC - 7,082.70) edged 0.9 point higher, or 0.01%. 

The Cboe Volatility Index (VIX - 19.02) put on 0.1 point, or 0.6%.

Closing Indexes Summary Nov 27

NYSE and Nasdaq Stats Nov 27

5 Items on our Radar Today

  1. Mark Luckie, a former employee of Facebook, published a note stating that the social media name has a "black people problem." Luckie elaborated, saying the inclusive outlook that Facebook projects is not representative of the company's actual lack of diversity and everyday racial bias. (CNBC)
  2. The Federal Bank of Minnesota just released a chart showing a spike in farm bankruptcies in the Upper Midwest. According to the central bank, the amount of bankruptcies in Wisconsin and adjacent states has more than doubled since 2014. (MarketWatch)
  3. Analysts are over these 2 struggling healthcare stocks
  4. What UAL's recent stock surge could mean for options bears. 
  5. The options bull who just placed a huge bet on RACE stock

Corporate Earnings Nov 27

Unusual Options Activity Nov 27

Data courtesy of Trade-Alert

Oil, Gold Back Down as Dollar Firms

Oil prices were little changed today, inching only a few cents lower as a stronger U.S. dollar overshadowed expectations for a possible forthcoming production cut from the Organization of the Petroleum Exporting Countries (OPEC). Crude futures for January delivery lost 7 cents, or 0.1%, to settle at $51.56 per barrel. 

Dollar-denominated gold futures also finished lower today. December-dated gold dropped $9, or 0.7%, to settle at $1,213.40 an ounce. 

 

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