Stocks opened lower following poor economic data out of China, which sparked a selloff in other global markets. The averages saw their lows shortly after the open and began to drift higher. By noon, the averages had cut their losses by more than half and moved in a narrow trading range for most of the afternoon. The Nasdaq was the biggest loser, with a slide of nearly 1%, while the S&P and Dow were down less than half that amount. Investors are displaying caution ahead of the earnings season, which will kick off in earnest this week as some of the nation's largest banks follow Citi (C) with their reports.
ECONOMIC EVENTS: In the U.S., no economic data of note was reported.
In China, exports fell 4.4% in December from a year earlier, versus expectations for growth of 2%. A 7.6% drop in imports not only missed the consensus forecast for growth of 4.5% it was also the worst reading since 2016 amid the ongoing trade dispute with the U.S.
COMPANY NEWS: Citi kicked off earnings season for the big banks by reporting fourth quarter earnings, excluding the impact of tax reform, that topped expectations but revenue that missed the consensus forecast. Investors, relieved and responding to Citi's already-beaten down share price, bid the stock up 4% following the report.
PG&E Corporation (PCG) plunged 52% after it said that it and its regulated utility subsidiary, Pacific Gas and Electric Company, are "facing extraordinary challenges relating to a series of catastrophic wildfires" and has decided that commencing reorganization cases under Chapter 11 of the bankruptcy code is "appropriate, necessary and in the best interests of all stakeholders."
In M&A news, Newmont Mining (NEM) and Goldcorp (GG) announced they have entered into a definitive agreement to combine in a stock-for-stock transaction valued at $10B. Additionally, Gannett (GCI) confirmed that it has received an unsolicited proposal from MNG Enterprises to acquire the company for $12 per share in cash, which Gannett said it will review "consistent with its fiduciary duties."
Meanwhile, Comcast's (CMCSA) NBCUniversal announced plans to launch a new, ad-supported streaming service. The company said that the service will be available at no cost to NBCUniversal's pay TV subscribers in the U.S. and major international markets.
Additionally, CNet reported that Apple (AAPL) COO Jeff Williams testified that the company wanted to use Qualcomm's (QCOM) 4G LTE processors in its newest iPhones, but Qualcomm refused.
MAJOR MOVERS: Among the noteworthy gainers was Canopy Growth (CGC), which rose 11% after it said it will invest $100M-$150M in New York operations after being granted a licence by New York State to process and produce hemp. Also higher was Tilray (TLRY), which gained 4% ahead of its IPO lock-up expiration. Meanwhile, QEP Resources (QEP) was fractionally higher after Bloomberg reported that it hired a bank to explore a potential sale.
Among the notable losers was Tailored Brands (TLRD), which slid 18% after it lowered its Q4 and fiscal 2018 outlook due to Jos. A. Banks results. Also lower was Prestige Brands (PBH), which fell 9% after it reported lower than expected preliminary Q3 revenue and cut its outlook for fiscal 2019.
INDEXES: The Dow fell 86.11, or 0.36%, to 23,909.84, the Nasdaq lost 65.56, or 0.94%, to 6,905.92 , and the S&P 500 declined 13.65, or 0.53%, to 2,582.61 .
