The Dow Jones Industrial Average was down 0.24%, the S&P 500 fell 0.22%, and the Nasdaq slid 0.88% on Monday, Sept. 25. The Nasdaq posted its worst daily performance since Sept. 5.
Apple dragged the rest of the tech sector lower on reports of sluggish demand for its iPhone X. A report in Digitimes said that Apple has ordered its suppliers to ship just 40% of original iPhone X production plans and hold the remainder. Apple is reportedly waiting for pre-sale orders to begin on Oct. 27 to assess how to go forward in deliveries. When the iPhone 7 was in the pipeline last year, Apple ordered 60% of the total production plans. The iPhone X is Apple's flashier model with a $1,000 price tag.
Monday's losses were just the latest to hit Apple. Last week, the world's largest company was under pressure on reports of weak sales of its iPhone 8 and connectivity issues with its next-generation smartwatch.
In a report Friday, Nomura noted signs of weakness in preorders of the iPhone 8 as slower promotional activities and the launch of the company's special edition iPhone X potentially cannibalize sales.
Apple confirmed that the new watch had encountered connectivity problems earlier last week. The Apple Watch Series 3 is the first model to link to networks independently rather than through an iPhone. In a statement to The Verge, Apple said the problems occurred when the watches were already using unauthenticated WiFi networks without connectivity. Apple said it was "investigating a fix for a future software release."
Apple shares were down 0.88% on Monday, their fourth down day in a row. Shares have dropped more than 5% since Wednesday, Sept. 20.
Semiconductor names such as Nvidia Corp. (NVDA) - Get Report , Advanced Micro Devices (AMD) - Get Report and Ambarella Inc. (AMBA) - Get Report fell, while the S&P Semiconductor SPDR ETF (XSD) - Get Report declined more than 2%.
Industry peers such as Alphabet Inc. (GOOGL) - Get Report , Facebook Inc. (FB) - Get Report , Microsoft Corp. (MSFT) - Get Report , and Alibaba Group Holding Ltd. (BABA) - Get Report were also lower. The Technology Select Sector SPDR ETF (XLK) - Get Report skidded 1.1%.
Concerns over warfare with North Korea increased, adding to markets' instability to begin the week. North Korean Foreign Minister Ri Yong Ho told reporters on Monday that the U.S. had "declared war on our country" and that it had the "right to make all self-defensive counter measures, including the right to shoot down the United States strategic bombers at any time even when they are not yet inside the aerospace border of our country."
In an appearance at the U.N. General Assembly on Saturday, Ri said that a missile attack on the U.S. mainland had become "inevitable" after U.S. President Donald Trump issued a series of threats to destroy the country and called North Korean leader Kim Jong-un "rocket man."
In response, Trump tweeted, "Just heard Foreign Minister of North Korea speak at U.N. If he echoes thoughts of Little Rocket Man, they won't be around much longer!"
Trump addressed the U.N. General Assembly last week and called Kim the head of a "depraved" regime, and said the U.S. is "ready, willing and able" to use military force. He promised to "destroy" the country if the U.S. is forced to act.
The authoritarian country has conducted a number of missile tests in recent weeks, with two of the devices flying over Japan, and has threatened to bomb U.S. territory Guam. The face-off has unsettled markets since it returned to headlines in early August.
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Further information on the Trump administration's highly coveted tax reform plans will be made public on Wednesday. President Trump will lay out "new details" in a speech on Wednesday, White House press secretary Sarah Huckabee Sanders told reporters on Monday afternoon.
The Big Six -- a group of officials from the White House and Capitol Hill -- will likely scrap a previous plan to cut the corporate tax rate to 15% and instead aim for a rate between 20% to 23% in final legislation, according to Politico. The Big Six group includes Treasury Secretary Steven Mnuchin, House Speaker Paul Ryan, and McConnell.
In deal news, General Electric Co. (GE) - Get Report agreed to sell its industrial solutions unit to ABB Ltd. (ABB) - Get Report , the Swiss robotics and energy grid conglomerate, for $2.6 billion. ABB will pay just under one times GE Industrial Solutions sales of $2.7 billion and about 12 times the unit's earnings before interest, taxes, depreciation and amortization of $208 million.
For GE, the sale is the first big disposal by new CEO John Flannery, who has promised to cut costs and sell operations in a bid to reverse lackluster performance that has dragged GE's share price down almost 17% over the past year.
Genuine Parts Co. (GPC) - Get Report agreed to purchase European peer Alliance Automotive Group for $2 billion, including debt. The deal, expected to close in the fourth quarter, should deliver $2.3 billion in gross annual billings and is expected to boost profit-per-share by 45 cents to 50 cents in fiscal 2018.
In other stock news, D.R. Horton Inc. (DHI) - Get Reportslashed its fourth-quarter guidance as the recent hurricanes caused delays in its pipeline. The largest U.S. homebuilder anticipates to generate roughly $150 million of cash flow from operations over its fiscal year, down from its previous guidance of $300 million. Its fourth-quarter backlog conversion rate is expected to slip to 85% from a previous target of 88% to 90%.
Allergan PLC (AGN) - Get Report rose over 3% on Monday after authorizing a new share buyback program and announcing that its chief financial officer, Tessa Hilado, would retire once a replacement has been found. The drugmaker approved a $2 billion stock repurchase program, around 2.9% of share outstanding at current levels. The company called its stock "substantially undervalued." Allergan also committed to paying down $3.75 billion in debt next year.
Under Armour (UAA) - Get Report rose 1.7% on Monday after analysts at Keybanc upgraded its rating to overweight from sector weight with a $20 price target. The firm said the recent appointment of Patrik Frisk, the former CEO of the footwear company Aldo, as its new COO is a positive and that the athletic apparel brand has "a renewed focus on improving financial performance" in the near-term.
Colgate-Palmolive Co. (CL) - Get Report rose nearly 3% after Morgan Stanley upgraded its rating to overweight from equal weight and upped its price target to $84 from $75. Analyst Dara Mohsenian anticipates sales beats in coming quarters given easy comparables and said the markets was "mispricing" the company's strategies.
Updated from 2:40 p.m. ET, Monday, Sept. 25.
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