Wall Street closed mixed on Monday as invertors’ remained concerned about a partial trade between the United States and China. Moreover, political unrest in Hong Kong also dented market sentiment. The Dow ended in the green while both the S&P 500 and Nasdaq Composite finished in the negative territory. The bond market was closed on Monday on account of Veteran’s Day.
The Dow Jones Industrial Average (DJI) gained 10.25 points to close at 27,691.49. The S&P 500 decreased 0.2% to close at 3,087.01. Meanwhile, the Nasdaq Composite Index closed at 8,464.28, slipping 0.1%. The fear-gauge CBOE Volatility Index (VIX) increased 5.1% to close at 12.69. A total of 5.5 billion shares were traded Monday, lower than the last 20-session average of 6.8 billion. Decliners outnumbered advancers on the NYSE by a 1.36-to-1 ratio. On Nasdaq, a 1.17-to-1 ratio favored declining issues.
How Did The Benchmarks Perform?
The Dow closed in positive territory with 21 components of the 30-stock blue-chip index closing in the red while 9 ended in green. The Dow’s gained was primarily owing to 4.6% rise in the stock price of The Boeing Co. (BA - Free Report) following the news that the world’s biggest aircraft maker is expecting its troubled 737 Max fleet to return to commercial service in January 2020. The Boeing carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The S&P 500 closed in the red. Both the Utilities Select Sector SPDR (XLU) and the Energy Select Sector SPDR (XLE) lost 0.6%. The tech-laden Nasdaq Composite finished in the negative territory due to performance of large-cap tech stocks.
Trade Tussle Continues
On Nov 8, President Donald Trump told reports that he hasn’t agreed so far to roll back existing tariffs in phases that his administration imposed on Chinese over the past one and half years. Moreover, senior U.S. Trade Advisor Peter Navarro said that no formal agreement has taken place between the United States and China to remove tariffs on each other goods.
Notably, on Nov 7, Gao Feng, a spokesperson for China’s Commerce Ministry said that both United States and China have agreed to get rid of existing trade tariffs imposed in phases. Per Gao, both sides will simultaneously eliminate some of the existing tariffs in order to reach the phase one of the broader trade deal.
Political Crisis Deepens in Hong Kong
Political protest in Hong Kong turned violent on Monday and one protestor was in critical condition after police opened fire. On the other hand, police said “rioters” poured “flammable liquid” on a man and set him on fire.During the weekend anti-government agitation, protesters blocked roads and vandalized shopping malls across Hong Kong’s New Territories and Kowloon Peninsula on Nov 10. Meanwhile,Hong Kong is scheduled to hold local elections this month.
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