Day Traders Diary

11/21/19

The major averages pulled back once again on concerns over the US China trade deal. The Dow Jones Industrial Average finished down 54 points at 27,766. The S&P 500 and Nasdaq closed modestly lower. Today marked the third straight day of losses for the Dow, its longest losing streak since August. The S&P 500 posted its first three-day slide since September. Boeing and Procter & Gamble were the biggest losers in the Dow, falling more than 1% each.

"The U.S. and China don't know what they want to do on a trade deal," said Randy Frederick, vice president of trading and derivatives at Charles Schwab. "Every single day it's something different. They're close to a deal. Then they're not close to a deal."

During a phone call thought to have been made late last week, Chinese Vice Premier Liu He invited U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin to Beijing to sit down for further negotiations, according to a report from The Wall Street Journal.

The energy sector (+1.6%) was today's outright leader, as oil prices rose 2.9% on a report indicating that OPEC+ is likely to extend production cuts until June 2020. Eight of the 11 S&P 500 sectors finished lower.  

The big news of the day came from Charles Schwab up 7.3% on reports they are looking to acquire TD Ameritrade for around $26 billion, TD Ameritrade closed up 16%. Rival, E*Trade closed down 9%.

On the earnings front, the retail space remained in focus. L Brands rose 10% after lifting guidance. Macy's fell 2% and BJ's Wholesale fell 8% on discouraging results and guidance.

The recent advance in the Treasury market was halted, sending yields higher across the curve. The 2-yr yield increased four basis points to 1.61%, and the 10-yr yield increased three basis points to 1.77%. The U.S. Dollar Index was little changed at 97.98.