Here Are 3 Hot Things to Know About Stocks Right Now
- Stocks fell broadly Monday, with the tech-heavy Nasdaq faring the worst of the three major indexes on fallout from the blacklisting of China's Huawei.
- Google (GOOGL) - Get Report suspended business with Huawei and prevented the company from accessing critical portions of its Android mobile phone platform.
- Sprint (S) - Get Report and T-Mobile US (TMUS) - Get Report surged after U.S. Federal Communications Commission Chairman Ajit Pai said he would approve their $26 billion merger plans.
Wall Street Overview
Stocks ended down Monday as chipmakers took a hit amid the fallout from the blacklisting of China's Huawei Technologies.
The Dow Jones Industrial Average fell 84 points, or 0.33%, to 25,680, the S&P 500 slipped 0.67% and the Nasdaq sank 1.46%.
The U.S. Commerce Department last week added Huawei and dozens of its affiliates to an "Entity List" that would greatly restrict its ability to buy components from U.S. companies.
Google (GOOGL) - Get Report has suspended business with Huawei, at least in part, and prevented the company from accessing critical portions of its Android mobile phone platform. Google parent Alphabet was down 2.1% to $1,144.66.
In addition, several U.S. companies, including Broadcom (AVGO) - Get Report , Qualcomm (QCOM) - Get Report , Intel (INTC) - Get Report and Xilinx (XLNX) - Get Report , will no longer supply Huawei with the components it needs to continuing building 5G networks around the world. Broadcom fell 6%, Qualcomm was down 6%, Intel slumped 3% and Xilinx fell 3.6%.
Lumentum Holdings (LITE) - Get Report shares fell 4.1% to $44.42 after the chipmaker and key Apple (AAPL) - Get Report supplier cut its current quarter revenue outlook after saying it discontinued all shipments to Huawei.
"Escalating trade uncertainty and the threat of more tariffs are huge wild cards for corporate profits," said LPL Chief Investment Strategist John Lynch. "We are hopeful that significant progress can be made on the trade front next month, when President Trump and China's President Xi are expected to meet at the G20 summit. A prolonged impasse that lasts through the summer would make mid-single-digit earnings growth difficult to achieve in 2019."
Apple (AAPL) - Get Report shares led the Dow downward, falling 3.1% to $183.09 after analysts at HSBC cut their price target on the tech giant amid concerns that potential tariffs on imports from China could force it to pass on increased iPhone costs to U.S. consumers.
Sprint (S) - Get Report and T-Mobile US (TMUS) - Get Report shares surged after U.S. Federal Communications Commission chairman Ajit Pai said he would approve their $26 billion merger plans. Sprint climbed 18.8% to $7.34, while T-Mobile advanced 2.9% to $79.29.
Ford (F) - Get Report will eliminate about 7,000 jobs, or 10% of its global salaried workforce, as it looks to save $600 million a year. Shares were off slightly to $10.28. By the time Ford finishes these layoffs in September, about 800 positions will be eliminated in the U.S. Five hundred U.S. jobs are expected to be cut this week.