Stocks opened sharply lower and saw their lows a short time after the open. The early weakness was attributed to comments last night from President Trump threatening to add new tariffs on Chinese imports and to raise the level of existing tariffs. The market was able to shake off its early weakness and close a bit higher as economic adviser Larry Kudlow echoed some of the president's earlier sentiments but also said that Trump still believes a trade deal with China is possible.
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. In trade news, White House Director of the National Economic Council Larry Kudlow said that U.S. President Donald Trump and China's President Xi Jinping plan to meet for dinner Saturday at the G-20 Meeting. Kudlow said that Trump is "very disappointed" in the progress with China on trade talks, adding that the president sees a "good possibility" that a trade deal with China can still be made.
COMPANY NEWS: Shares of United Technologies (UTX) fell about 4% after the conglomerate announced 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.
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 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. At the close, Apple shares were down fractionally, though that was improved from the stock's earlier session lows.
Meanwhile, General Motors (GM) shares fell about 2.5% after President Trump tweeted that he is "very disappointed" with the car maker and CEO Mary Barra for "closing plants in Ohio, Michigan and Maryland." The president added that he is now looking at cutting all GM subsidies, including for electric cars.
MAJOR MOVERS: Among the noteworthy gainers was Spirit Airlines (SAVE), which rose 15% after the company increased fourth quarter guidance. Also higher was Vertex Pharmaceuticals (VRTX), which gained 5% after the company announced 4-week efficacy and 12-week safety data from two TripleRx Phase 3 trials of VX-659 plus Symdeko in people with cystic fibrosis.
Among the notable losers was G1 Therapeutics (GTHX), which slid 11% after phase 2 trilaciclib trial data showed no statistical difference from placebo. Also lower was Papa John's (PZZA), which fell 10% after the Wall Street Journal reported that Trian Fund Management has decided not to pursue a deal to acquire the pizza chain. The Journal noted that some bidders remain interested in potentially taking a stake in Papa John's, but none is currently weighing buying the whole company.
INDEXES: The Dow rose 108.49, or 0.44%, to 24,748.73 , the Nasdaq gained 0.85, or 0.01%, to 7,082.70 , and the S&P 500 advanced 8.75, or 0.33%, to 2,682.20 .
