Technical traders got their wishes today as the 200-day moving average has once again acted as a true resistance area to note. Add to that the short-term overextension of many areas of the markets, a little geopolitical and economic news, and you have a recipe for a pullback. The Dow 30 closed lower on the day by 220, the S&P 500 lost 25, and the Nasdaq closed down on the day by 86.
Concerns over the China trade deal extending beyond the deadline, more signs of a global economic slowdown, and US politicians trying to extend the deadline on Trump's shutdown have all caused more concern from investors in the short-term.
Sector News
Semiconductors gave back gains seen yesterday as the sector was, and is still, overbought in the short-term. Investors took their profits today as many of the underlying stocks in the sector are simply overbought.
Oil traded back into its recent comfort zone today losing about 3%. A 1.3 million-barrel rise in inventory was blamed for the decline today. For the year Oil is still higher by about 14%, but today's decline held back the energy sector as a whole.
Banking stocks sold off today after hinting at weakness yesterday. The banks have been showing signs of slowing recently as trading volume has gradually declined over the last few days.
Stock News
SunTrust (STI ) and BB&T (BBT ) announced that they will join forces today in an all stock merger. Both companies feel they can offer better service together, as well as put a heavier focus on their digital platform. In the merger, SunTrust stock owners will end up with 1.3 shares of BB&T, which makes the deal worth about $66 billion.
Twitter (TWTR ) shares fell hard today despite the company reporting earnings and revenue that came in better than expected. The company saw their shares sell off on forward Q1 guidance that came in at the lower range of what Wall Street was expecting. The company also announced they will not provide data on monthly active users and their operating expenses are higher by 20%. Since their August 2018 earnings report, the stock has been in a sideways range between $35 and $25.
Dunkin Brands (DNKN ) shares sold off today as the company reported earnings better than expected but light revenue. The company also missed their sales targets, which came in under estimates. The company announced an increase in their dividend to 37.5 cents per share from 34.75 cents.
Chipotle (CMG ) shares blasted to highs today as the company reported earnings of $1.72 per share, which was $0.35 cents higher than expected. Revenue was also much better than expected as the company saw strong sales growth. Online orders which were higher by 65% was a noted factor in growth. Shares are now higher by about 40% on the year.
