President Xi suggested China will not be a pushover in trade negotiations
The Dow Jones Industrial Average (DJI) has explored both sides of breakeven today, as traders digest mixed messages on the U.S.-China trade front. While both President Donald Trump and Chinese President Xi Jinping waxed optimistic about a "phase one" trade deal, the latter also said that Beijing would "fight back," if necessary, to ensure an "agreement on the basis of mutual respect and equality." At last check, the Dow and the S&P 500 Index (SPX) were holding modestly higher, while the Nasdaq Composite (IXIC) was in the red -- with all three indexes putting their weekly win streaks at risk.
Bank of America Corp (NYSE:BAC) is seeing unusual options volume today, with roughly 45,000 calls on the tape -- 1.2 times what's typically seen at this point. Trade-Alert highlights a 6,100-contract block of March 33 calls that was likely bought to open for an initial cash outlay of $1.08 million (number of contracts * $1.77 premium paid * 100 shares per contract). If this is the case, breakeven for the call buyer is $34.77 (strike plus premium paid). BAC stock was last seen trading up 1% at $33.16, bringing its year-to-date advance to 34.5%.
Nordstrom, Inc. (NYSE:JWN) is the best stock on the S&P 500 this afternoon, after the department store chain's beat-and-raise was met with a round of bullish brokerage notes. JWN is up 9% at $37.42, bouncing sharply off its 80-day moving average, and reclaiming its 40-day trendline.
Intuit Inc. (NASDAQ:INTU) is at the bottom of the SPX, as the financial software firm's lower-than-expected current-quarter profit guidance offset a fiscal first-quarter beat. INTU stock is down 4.1% at $259.93, set to close back below its 40-week moving average.