Dow Rocked as Wall Street Digests Rising Risk of No-Deal Brexit, Crypto Coins News

The Dow Jones attempted to drive higher on Tuesday amid an eerie period of trade war calm, only to falter in late afternoon trading.

Assisting the stock market rally, Boeing, the Dow’s most heavily weighted stock, bounced 2% on positive 737 Max news,erasing a 4.6% drop from McDonald’sand offsetting a punishing capitulation from Travelers stock post-earnings.

A sharp correction dashed those gains late in the session after Brexit worries resurfaced when Boris Johnson lost a vote on the Brexit timetable, and a no-deal outcome reemerged as a possibility. Dow Lifted by Boeing, Pounded by Brexit

Flipping the script from Monday, theDow Jones Industrial Averagewas the top-performing primaryUS stock market index, inching 13. 64 points or 0. 05% higher to 26, 841. 28

The Nasdaq and S&P 500 slipped into the red, falling 0. 57% and 0. 19%, respectively.

Gold edged 0. 17% higher to $ 1, 490, while theoil price jumped than 1.7%as the cautiously optimistic mood gave way on Wall Street.

Brexit Vote Hammers Dow Late in Session

Brexit progress has hit a snag in the UK Parliament, and Prime Minister Boris Johnson is threatening to pull his bill and call a snap election.

The risk mood had been calm for much of the day, and the British pound rose slightly against the US dollar after Johnson finally won a Brexit vote in Parliament, but the pound quickly plunged more than 0. % when Johnsonlost a subsequent vote on the timeline to debate the Brexit bill

The damage to the Dow was done by thePM’s comments that no-deal preparations would be accelerated:

“And we now face further uncertainty and the EU must make up their minds over how to answer parliament’s request for a delay. And the first consequence, Mr. Speaker, is that the government must take the only responsible course and accelerate our preparations for a no-deal outcome. ”

Trump Stirs Racial Tensions as Trade Talks Languish in Holding Pattern

While there has been little functional progress in President Donald Trump’s trade war, stock bulls are still hoping that a timeline remains in place to get a deal done before the 2020 election.

Dominating headlines, Trump’s use of the racially charged term “lynching” in a tweet hasboth Republicans and Democrats pushing back against the president.

While Trump’s tweet did not directly affect the market, it’s important to note that impeachment odds currently sit at their yearly highs. Pushback from Republican senators could increase the probability of his actual removal from office, which would likely increase market volatility. That’s particularly true sinceElizabeth Warren continues to poll among the front runners for the Democratic nominationin 2020.

Further pressuring the Dow, more bad data was seen on Tuesday morning whenUS housing sales data missed expectations. This adds togrowing evidence of a consumer slowdown, alongside existing weakness in US manufacturing data .

Dow Stocks: Boeing and Disney Lead Rally

TheDow 30was once again mixed, but a strong performance from Boeing helped to carry some momentum in the index. Some evidence of progress in the aerospace manufacturer’sefforts to get the 737 Max back in the airhelpedbrighten the mood for BA stock, whilea mysterious order for its (Dreamliner) added to the better atmosphere in the Dow Jones’ most expensive component.

Disney was 2% higher after Verizon announced it would begiving away the former’s new streaming service for free as a promotion. This had the knock-on effect of sending Nasdaq stock Netflix sharply lower.

McDonald’s fell 4.6% aftera miss in its earnings release, though it did not appear to be an entirely negative report. Procter & Gamble and United Technologies both enjoyed strong rallies aftertheir earnings beat expectations.

It might have been a huge day for the Dow Jones, had it not been for a whopping 8.4% drop in Travelers Companies stock. Asizable miss in earningssent the insurance giant plummeting, knocking plenty of points off the index.

This article was edited byJosiah Wilmoth

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Last modified (UTC): October 22, 2019 (**********************************************************************: