Market Brief: Stocks Slump on Trade Worries (30th Time We’ve Written That Title!)
Matt Weller, CFA, CMT November 20, 2019 4:03 PM
See a summary of the top market themes and trends from today's US trading session!
View our guide on how to interpret the FX Dashboard.
- A Reuters report midday suggested that the much-ballyhooed “Phase One” trade deal between the US and China may not be completed this year, driving risk assets lower across the board. Later comments from the White House that “progress is being made” stemmed the selloff, but traders are getting increasingly fed up with rhetoric and will increasingly want to see action as we move into December.
- The FOMC minutes from the central bank’s October meeting showed most policymakers viewed interest rates as appropriate barring a material change to the economic outlook – steady as she goes for the world’s largest central bank!
- FX: The US dollar was the strongest major currency on the day; the aussie brought up the rear.
- Commodities: Oil surged 3% on the day on the back of a smaller-than-expected build in inventories. Gold was essentially flat on the day.
- US indices closed roughly -0.5% lower across the board on worries over the US-China trade deal timeline.
- Energy (XLE) was the strongest sector on the day; materials (XLB) brought up the rear.
- Stocks on the move:
- Retailer Target (TGT) exploded 14% higher on the day after reporting an earnings trifecta (beat on earnings, beat on revenues, raised guidance).
- Lowe’s (LOW) gained 4% on better-than-expected earnings.
- See our report on the “streaming wars” and the potential impact on the stocks of Walt Disney (DIS) and Netflix (NFLX)
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.