The markets were sharply lower to start the day as President Trump stated at a rally in Florida that China "Broke the deal" and that they would pay for doing so. This caused investors to worry there would likely be no deal of any kind by tomorrow's deadline. Later in the day more comments from Trump showed promise of an eventual deal, which pulled the Dow 200 points off lows.
The Dow 30 closed the day lower by 140, the S&P 500 lost 8, and the Nasdaq closed the day down sharply, losing 32. Tomorrow, investors will not only be searching for any news on trade but will also focus on the IPO of ridesharing company Uber (NYSE: UBER).
Sector News
Semiconductors were one of the worst performing areas of the markets today, as they got hit with a double whammy of sorts. Chip stocks sold off on Intel news, along with being stuck in the crosshairs of the trade war playing out on the public stage. Though the sector is now in correction territory with this recent pullback, it is still higher on the year by about 25%.
Technology stocks were also weak today and have now pulled back about 7% over the last 2 weeks. Goldman Sachs (NYSE: GS) analysts offered a note to clients that investors should stick with tech stocks more focused in the service industry rather than the product industry to avoid as much of the trade war issues as possible.
Stock News
Disney (NYSE: DIS) shares were in the news today as the company reported earnings that beat expectations along with revenue that came in better than expected as well. One investor concern was their direct-to-consumer segment, which saw growth in the first quarter but operated at a loss as the company continues to invest to compete with the likes of Netflix.
Intel (NASDAQ: INTC) sold off sharply just before the market close yesterday and today suffered a sharp down day as the company offered revenue guidance well below expectations. The company was also downgraded today at BMO on concerns about margin performance in the industry.