Stocks opened sharply lower as the threat of tariffs weighed on the market after President Trump said if China does not respond to his trade demands, he expects the U.S. will impose a 25% tariff on all Chinese imported goods. Despite the rough start, stocks moved of their lows, with the Nasdaq eventually crossing into positive ground. The Dow is being weighed down by shares of United Technologies, which were down after the company said it would split itself in three.
ECONOMIC EVENTS: In the U.S., the Case Shiller 20-city home price index dipped 0.02% to 213.76 for September. The FHFA home price index rose 0.2% to 266.9 in September. The Conference Board's consumer confidence index declined to 135.7 in November, down from 137.9 in October.
COMPANY NEWS: Along with the announcement that it had completed the acquisition of Rockwell Collins, United Technologies on Monday confirmed its intention to split into three separate companies. The split, expected to be completed in 2020, will see the newly-formed Collins Aerospace Systems and Pratt & Whitney as part of the United Technologies company, while the other two companies will be Otis, an elevator manufacturer, and Carrier, which is engaged in heating, refrigeration and HVAC systems. Shares of the Dow member, which expects separation costs of $2.5B-$3B, have declined nearly 6% following the announcement.
Amazon (AMZN) announced that Cyber Monday was the single biggest shopping day in the company's history, stating that more products were ordered worldwide than any other day, but declining to give more detail on growth percentages or dollar figures. Adobe released its 2018 online shopping data for Cyber Monday as well, stating that the day is projected to hit $7.9B, which would make it the largest online shopping day of all time in the U.S. In addition to market leader Amazon, other publicly traded companies with a large U.S. e-commerce presence include eBay (EBAY), Walmart (WMT), Target (TGT), Macy's (M) and Best Buy (BBY).
Apple (AAPL) was swept up in the broader tariff concerns as after President Trump told the Wall Street Journal in an interview that it is possible that iPhones made in China could be hit with 10% tariffs. Near noon, Apple shares were down about 0.5%, which was improved from the stock's earlier session lows.
MAJOR MOVERS: Among the noteworthy gainers was Spirit Airlines (SAVE), which rose 15% after the company increased fourth quarter guidance. Also higher was Diamondback Energy (FANG), which gained 1% after it was named to enter the S&P 500 index.
Among the notable losers was G1 Therapeutics (GTHX), which slid 19% after phase 2 trilaciclib trial data showed no statistical difference from placebo. Also lower was Wyndham Destinations (WYND), which fell 2% after Goldman Sachs analyst Stephen Grambling downgraded the stock to Neutral from Buy and cut his price target to $47 from $54.
INDEXES: Near midday, the Dow was down 31.56, or 0.13%, to 24,608.68, the Nasdaq was up 4.47, or 0.06%, to 7,086.32, and the S&P 500 was little changed at 2,673.58.
