Day Traders Diary

11/20/19

The major averages pulled back from record highs after Reuters reported a so-called phase one trade deal between China and the U.S. may not be completed by the end of 2019. The Dow Jones Industrial Average finished down 112 points, or 0.4% to close at 27,821. The S&P 500 slid 0.4% while the Nasdaq Composite dropped 0.5% to end the day at 8,526.

Reuters reported, citing trade experts and people close to the Trump administration, the completion of a partial trade deal could be pushed into 2020 as China seeks more extensive tariff rollbacks. That report came after The Wall Street Journal said, citing former Trump administration officials, that the ongoing trade talks could hit an impasse. Uncertainty around trade also grew after the Senate passed a bill supporting Hong Kong protesters. This led China to accuse the U.S. of interfering in domestic affairs.

Trades stocks like Apple dropped even as President Trump visited Apple's new campus in Auston Texas. Other trade stocks like Caterpillar were lower. Chip stocks pulled back with Broadcom down 1.9% while Analog Devices and Qualcomm both closed more than 2% lower.

In the retail space Target rose 14% while Lowe's rose 4%. Urban Outfitters, on the other hand, fell 15% on disappointing results.

U.S. Treasuries continued to benefit from a defensive mindset, which sent yields lower in a curve-flattening trade. The 2-yr yield declined two basis points to 1.57%, and the 10-yr yield declined five basis points to 1.74%. The U.S. Dollar Index increased 0.1% to 97.91