The Dow and S&P 500 are each down over 1% and the Nasdaq is down nearly 1% as persistent concerns over the U.S.-China trade war are again making for a cautious, risk-averse session. India's central bank and New Zealand's central bank each cut rates by more than expected while the Bank of Thailand, which had been expected to make no change, also eased policy, prompting an angry tweet from the president. President Trump stated in his tweet that "our problem is not China [...] our problem is a Federal Reserve that is too proud to admit their mistake of acting too fast and tightening too much (and that I was right!)," adding that the Federal Reserve "must Cut Rates bigger and faster, and stop their ridiculous quantitative tightening NOW."
ECONOMIC EVENTS: In the U.S., EIA inventory data showed a 2.4M barrel rise in crude stocks, versus forecast for a 2.5M barrel weekly decrease. Nymex crude prices which were down amid growth fears prior to the data, took a further leg down after it. Near noon, WTI crude is down over 5% to trade near $51 a barrel.
TOP NEWS: Shares of Disney (DIS) are under pressure, sliding 6% after the company missed expectations for earnings and revenue for the third quarter, and showed increased losses in its streaming segment due to investments in Disney+, ESPN+ and Hulu. Despite the company's disappointing quarterly results, both JPMorgan and Morgan Stanley reiterated buy-equivalent ratings on the stock, with JPMorgan analyst Alexia Quadrani calling the selloff a "great" buying opportunity.
CVS Health (CVS) reported better than expected earnings and revenue and raised its full-year profit outlook, sending its shares up 6% near noon. The retail pharmacy operator and pharmacy benefit manager said all of its businesses performed at or above its expectations in Q2. Meanwhile, peer Walgreens Boots Alliance (WBA) said in a regulatory filing this morning that it plans to close approximately 200 locations in the United States.
MAJOR MOVERS: Among the noteworthy gainers was Cambrex (CBM), which rose 47% after announcing that it has signed a definitive agreement to be acquired by an affiliate of the Permira funds in a transaction valued at approximately $2.4B, including Cambrex's net debt, or $60 per share. Also higher were WW (WW) and Match Group (MTCH), which gained a respective 40% and 28% after reporting quarterly results.
Among the notable losers was Athenex (ATNX), which fell 22% after reporting earnings and announcing results from the phase 3 trial of Oraxol in metastatic breast cancer patients. Also lower after reporting quarterly results were Entercom (ETM) and New Relic (NEWR), which dropped 43% and 33%, respectively.
INDEXES: Near midday, the Dow was down 331.30, or 1.27%, to 25,698.22, the Nasdaq was down 56.38, or 0.72%, to 7,776.89, and the S&P 500 was down 28.97, or 1.01%, to 2,852.80.
