Here Are 3 Hot Things to Know About Stocks Right Now
- The Nasdaq Composite index, heavily weighted towards tech stocks, fell sharply Monday on reports Alphabet and Facebook are facing Federal probes of their business practices.
- Alphabet (GOOGL - Get Report) sank on reports of an anti-trust probe and an issue that caused traffic congestion across key parts of its network over the weekend.
- Facebook (FB - Get Report) fell after the Federal Trade Commission reportedly won jurisdiction over the company, clearing the way for a potential investigation into the social media giant's competitive practices.
Wall Street Overview
The Dow Jones Industrial Average, swung wildly before crawling into positive territory and ending up 5 points, or 0.02%, to 24,820, the S&P 500 lost 0.28% and the tech-heavy Nasdaq was down 1.61%. The Nasdaq entered correction territory as the index traded more than 10% below its record high set in late April.
Over the weekend, China published details of its trade stance with the United States, suggesting that Beijing was digging in for a prolonged dispute with the U.S.
The white paper also included plans for a so-called Unreliable Entities list of U.S. companies, similar in nature to a collection of Chinese companies targeted by the U.S. Commerce Department, in the coming weeks.
"U.S. and Chinese leadership continue to take a hardline stance in public, reiterating a willingness to engage in a protracted dispute, while also expressing openness and a seeming expectation of striking an eventual deal," Jason Pride, chief investment officer of private wealth for Glenmede, said in a company newsletter. "Markets remain fixated on the twists and turns of each speech and tweet. Officials close to the situation have indicated to multiple news outlets that the two sides have agreed on some key substantive areas, even including intellectual property rights and penalties, but remain at odds most recently over implementation details."
Mexico officials, meanwhile, will meet with their American counterparts in Washington to discuss the current immigration crisis along the southwestern U.S. border, which triggered a move by President Trump last week to impose escalating tariffs on goods heading into the United States from its southern neighbor.
Alphabet (GOOGL - Get Report) fell 6.1% to $1,038.74 following a weekend issue that caused traffic congestion across key parts of its network and a report that suggested it may face a federal antitrust probe over its search engine. Alphabet is the Real Money Stock of the Day.
Facebook (FB - Get Report) , which was leading the Nasdaq's retreat, slid more than 7.5% to $164.15 after the Federal Trade Commission reportedly won jurisdiction over the company, giving it the green light to begin a potential investigation into the social media giant's competitive practices.
FedEx (FDX - Get Report) shares fell 1.3% to $152.29 following a report from China's state-run news agency that the company will be investigated for allegedly re-routing packages destined for Huawei Technologies.
Germany's Infineon Technologies (IFNNY) will acquire Cypress Semiconductor (CY - Get Report) in a deal with an enterprise value of €9 billion ($10.1 billion). Shares of Cypress Semiconductor soared 23.8% to $22.07, while Infineon Technologies feel 7.2% to $16.50.
"Respondents expressed concern with the escalation in the U.S.-China trade standoff, but overall sentiment remained predominantly positive," said Timothy R. Fiore, ISM chairman. "The PMI continues to reflect slowing expansion."