Stock Market Update Monday, May 6th, 2019
Things looked UGLY this morning!
Stocks were down big after President Trump sent out 2 tweets threatening to increase tariffs on Chinese imports.
Traders thought a trade deal was pretty much wrapped up, just needing to be finalized.
But over the weekend, Trump said that he will raise tariffs to 25% (from 10%) on $200 billion worth of Chinese imports. The increase is set for Friday.
With new trade concerns, the S&P opened the day with a 1.3% loss and the NASDAQ was down 2.2%. The sell-off wasn’t just in the U.S. either. The Chinese Shanghai Composite lost 5.6% on the news.
But after the initial shock, stocks rallied on news that a Chinese delegation is coming to the U.S. this week to talk about trade.
With traders wondering if the tweets were more of a negotiation “tactic” than anything, the fear in the morning wore off, and the major indices worked their way higher for most of the day.
Although the major indices finished with a loss, it could have been a lot worse! The DOW made an impressive 405 point reversal off of today’s lows and finished lower by just 66 points.
Here’s where the major indices ended the day:
- The S&P finished with an 0.5% loss. Down 13 points, the S&P ended at 2,932.
- The DOW ended lower by 0.3%. Dropping 66 points, the DOW closed at 26,438.
- The NASDAQ was down 0.5%. With a 41 point loss, the NASDAQ finished at 8,123.
Crude Oil (CL) started the day with losses but bounced back just like stocks. Up 0.6%, CL ended at $62.30 a barrel.
Lyft (LYFT) will report earnings tomorrow after the bell. It’s the first time Lyft will report earnings since it became a publicly traded company.
We’ll also hear from Anheuser Busch (BUD), Crocs (CROX), and Mylan (MYL).
Here is the economic calendar for the week:
Real Time Economic Calendar provided by Investing.com.
This Stock Market Update was provided by Rockwell Trading Services LLC.