The markets suffered a strong pullback today as investors continue to adjust following the trade concerns that started late Sunday when President Trump tweeted he would be raising tariffs to 25% on existing goods and considering raising on the rest of all Chinese goods "shortly." This comes as the deadline for a deal is this Friday and reports show the Chinese have backtracked on part of the existing deal terms.
Every Dow 30 stock was lower today and at one point the index was lower by 600+ points. Thanks to some last-minute buying, the Dow closed the day off its lows but still lost 472 on the day. The S&P 500 sold off 48 and the Nasdaq lost 159, which made it the biggest loser of the major indices. The Russell 2000 was the biggest loser overall, selling off 2.31% on the day.
Sector News
Oil was a weak spot today as the escalating trade war put pressure on the commodity. Oil pulled back to one-month lows as President Trump vows to place new tariffs on almost all Chinese goods on Friday. For the year oil has had an impressive 30% rally off lows as OPEC cut production and Iranian sanctions have helped support prices.
Semiconductors were also a weak area of the markets today as they continue to be directly in the middle of the trade war between China and the US. The sector completely erased all attempts to rally off lows yesterday and is now lower by over 3% just this week alone.
Healthcare rejected yesterday's rally as the sector erased most of the impressive bounce. Healthcare stocks shot higher yesterday on comments from a hedge fund manager who said many of them have been oversold by investors. The price activity in the last two days makes this a crucial moment for the sector as price resistance is above but yesterday's rally won't immediately be forgotten.
Stock News
Anheuser-Busch InBev (NYSE: BUD) shares were lower on the day as the company missed on earnings by 6 cents yet again. The company has now missed earnings expectations 11 out of the last 15 quarters. Revenue did come in higher than expected and the company announced a potential Asian IPO. Shares are now lower by about 6% since hitting highs just 2 weeks ago.
Hertz (NYSE: HTZ) beat on earnings for the third quarter in a row as the company lost 36 less than expected on revenues that were as expected. This initially sent shares higher in the aftermarket, but today's market weakness pulled shares lower on the day.
AIG (NYSE: AIG) shares were higher on the day as the company reported earnings that came in about 50 cents better than expected. Revenue beat expectations thanks to a profit in their underwriting division. Shares broke to new highs on the year after mostly consolidating for 2019.