Here Are 3 Hot Things to Know About Stocks Right Now
- Losses for the Dow Jones Industrial Average gained steam Wednesday following a report that completion of a “phase one” U.S.-China trade pact could be delayed until next year.
- Target (TGT – Get Report) soared after the retail chain reported stronger-than expected third-quarter earnings and raised its full-year profit guidance. Target is Real Money’s Stock of the Day.
- Lowe’s (LOW – Get Report) climbed after the home-improvement retailer posted stronger-than-expected third-quarter earnings and lifted its full-year profit guidance.
Wall Street Overview
Stocks losses accelerated Wednesday following a report that completion of a “phase one” U.S.-China trade pact could be delayed until next year.
The Dow Jones Industrial Average sank 238 points, or 0.85%, to 27,695.85, and the S&P 500 slipped 0.84%. The Nasdaq, which finished at a record closing high Tuesday, dropped 0.69%.
Home Depot ( HD – Get Report) , Apple ( AAPL – Get Report) and 3M ( MMM – Get Report) were leading the Dow’s retreat.
Reuters reported that completion of the first phase of a U.S.-China trade agreement could slide into 2020, as Beijing pushes for more extensive tariff rollbacks while the White House makes additional demands of its own. The report noted that some experts are still optimistic a deal might come together in the coming weeks, and Trump said on Wednesday his team continues to talk with China.
Stocks had started Wednesday’s session in the red after China condemned a U.S. Senate resolution supporting human rights in Hong Kong, and President Donald Trump again threatened to increase tariffs if Washington and Beijing aren’t able to negotiate a near-term trade agreement.
The Senate resolution, known as the “Hong Kong Human Rights and Democracy Act,” comes at a sensitive time in the trade negotiations following reports from China-backed media that Beijing won’t accept an agreement that doesn’t include the cancellation of tariffs from Washington.
Chinese Foreign Ministry spokesman Geng Shuang said the Senate move was designed to “bolster anti-China, extremist and violent radicals who attempt to disrupt Hong Kong,” and cautioned that “all those attempts to interfere in or impede China’s development will be in vain.”
“China is going to have to make a deal that I like,” Trump said on Tuesday at a cabinet meeting. “If we don’t make a deal with China, I’ll just raise the tariffs even higher.”
Hu Xijin, editor of the Global Times, a state-controlled Chinese newspaper, said on Twitter that China is ready to dig in on the trade issue.
“Few Chinese believe that China and the US can reach a deal soon,” he wrote. “Given current poor China policy of the US, people tend to believe the significance of a trade deal, if reached, will be limited. China wants a deal but is prepared for the worst-case scenario, a prolonged trade war.”
Few Chinese believe that China and the US can reach a deal soon. Given current poor China policy of the US, people tend to believe the significance of a trade deal, if reached, will be limited. China wants a deal but is prepared for the worst-case scenario, a prolonged trade war. https://t.co/7KPp5cUOIQ
— Hu Xijin 胡锡进 (@HuXijin_GT) November 20, 2019
However, Jim Cramer, the founder of TheStreet, complained on Twitter that the Chinese “steal, they cheat, they dump fentanyl and they act as if we are the bad guys? They keep their markets close, ours are open and the mainstream media and China are lauded…”
They steal, they cheat, they dump fentanyl and they act as if we are the bad guys? They keep their markets close, ours are open and the mainstream media and China are lauded… https://t.co/DjlgulPZGP
— Jim Cramer (@jimcramer) November 20, 2019
Cramer added that “there has been remarkably little inflation from tariffs. The farmers will vote for Trump anyway. Stay focused.”
“What would China do without our market?” Cramer asked. “Give me a break.”
Trump and Apple (AAPL – Get Report) CEO Tim Cook are scheduled to tour an Apple manufacturing plant in Austin, Texas, on Wednesday, the same day that the tech giant announced it has begun construction on a new plant in the city. Shares were down 1.7% to $261.72.
Target (TGT – Get Report) soared 12.2% to $124.40 after the retail chain reported stronger-than expected third-quarter earnings and raised its full-year profit guidance. Target is Real Money’s Stock of the Day.
“Target has figured out how to manage the dot.com by actually making money using a brick and mortar warehouse with an arm of the operation that brings it to you,” Cramer wrote on Real Money. “Meanwhile the inner city stores use Shipt for delivery. The continually strong dot com sales show the power of this joint buy online pick up or deliver strategy.”
Lowe’s (LOW – Get Report) climbed 4.1% to $118.02 after the home improvement retailer posted stronger-than-expected third quarter earnings Wednesday, and lifted its full-year profit guidance.
Urban Outfitters (URBN – Get Report) tumbled 13.9% to $24.80 after the clothing retailer posted weaker-than-expected third-quarter earnings amid weakening sales for some of the nation’s largest clothing-focused store chains. This dismal news follows similar weakness from department store retailer Kohl’s (KSS – Get Report) , which slashed its full-year profit guidance after missing Wall Street forecasts for same-store sales and earnings growth.
Apple, Home Depot, Kohl’s and UnitedHealth are holdings in Jim Cramer’s Action Alerts PLUS member club . Want to be alerted before Jim Cramer buys or sells these stocks? Learn more now.