Trading kicked off with a loss because of ongoing trade concerns.
China Trade War Round 3:
The White House is considering banning as many as 5 Chinese companies, including video surveillance equipment Hikvision.
And in a CNBC interview, U.S. Treasury Secretary Mnuchin said: “the U.S has no plans to go to Beijing to resume trade negotiations.”
In spite of the rough start, stocks experienced a small rally and the S&P turned positive mid-morning.
But right after the push higher, stocks pulled back and moved sideways ahead of today’s FOMC Minutes release.
At 2pm ET, the minutes from April’s meeting showed that the Fed is still considering a “patient approach” to raising rates. But the minutes didn’t reveal any real surprises.
There was a small rally after the release. But by the end of the day, the S&P was back below pre-report levels.
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Three Simple Trend Lines
Here’s where the major indices ended the day:
- The S&P finished with a 0.3 loss. Down 8 points, the S&P ended at 2,856.
- The DOW ended lower by 0.4%. Dropping 101 points, the DOW closed at 25,777.
- The NASDAQ was down 0.5%. With a 35 point loss, the NASDAQ finished at 7,750.
Crude Oil (CL) opened lower and continued to drop. Down 2.8%, CL ended at $61.39 a barrel. Today’s Crude Oil Inventories showed a 4.7 million barrel increase in U.S. stockpiles compared to the 1.2 million barrel drop expected.
Apple (AAPL) finished the day with its lowest close in over 2 months. Today’s 2.1% loss had a lot to do with ongoing trade concerns. According to Goldman Sachs, Apple earnings would drop 29% if China banned Apple products.
Qualcomm (QCOM) was another loser that has ties to Huawei. But today’s drop was mostly due to an anti-trust ruling. The stock finished the day with a 10.9% loss.
Retailers had a rough day after some weak earnings reports.
Lowes (LOW) dropped 11.9% and Nordstroms (JWN) was down 9.3%. But Target (TGT) bucked the trend and finished 7.8% higher after reporting better than expected numbers.
Here is the economic calendar for the week:
Real Time Economic Calendar provided by Investing.com.
Source: RockwellTrading by Markus Heitkoetter | Original Link