Here Are 3 Hot Things to Know About Stocks Right Now

  • The Dow Jones Industrial Average ended near the day's lows Tuesday as investors returned from the long holiday weekend to comments from President Trump that the United States is "not ready to make a deal" with China.
  • Shares of Italian-American carmaker Fiat Chrysler Automobiles (FCAU - Get Report) and France's Renault rose after Fiat Chrysler proposed the companies merge in a deal that would create the world's third-biggest automaker.
  • Chinese e-commerce giant Alibaba (BABA - Get Report) is considering raising $20 billion through a second listing in Hong Kong.

Wall Street Overview

Stocks closed sharply lower Tuesday as investors returned from the long Memorial Day holiday weekend to comments from President Trump that the United States is "not ready to make a deal" with China and that tariffs on Chinese imports could go up "substantially."

Adding to investor worries the yield curve inversion steepened as the yield on the benchmark 10-year Treasury note fell to around 2.26%, a 19-month low.

The Dow Jones Industrial Average lost 238 points, or 0.93%, to 25,348, the S&P 500 dropped 0.84%, and the Nasdaq lost 0.39% to end at 7,607.

Leading the Dow retreat were Intel (INTC - Get Report) , down 2.4%, ExxonMobil (XOM - Get Report) , down 2.1%, and Procter & Gamble  (PG - Get Report) , down 1.9%.

JPMorgan Chase (JPM - Get Report) CEO Jamie Dimon said that the escalating U.S.-China trade dispute is a "real issue" that could damage corporate confidence, CNBC reported, warning during a conference in New York that "trade has gone from being a skirmish to being far more important than that."

Meanwhile, Morgan Stanley Chief U.S. Equity Strategist Michael Wilson warned in a report that recent economic data "suggest US earnings and economic risk is greater than most investors may think." Wilson added that "numerous leading companies may be starting to throw in the towel on the second half rebound."

In addition, a Bloomberg Economics study found that the tariffs so far could reduce China's quarterly gross domestic product by 0.5%, while the U.S. and the rest of the world would see a 0.2% reduction in 2021.

Shares of Italian-American carmaker Fiat Chrysler Automobiles (FCAU - Get Report)  and France's Renault rose Tuesday after Fiat Chrysler proposed the companies merge in a deal that would create the world's third-biggest automaker. Fiat Chrysler climbed 7.2% to $13.78.

Chinese e-commerce giant Alibaba (BABA - Get Report) is considering raising $20 billion through a second listing in Hong Kong, according to Bloomberg, which cited people with knowledge of the matter. Shares dipped slightly to $154.81.

FedEx  (FDX - Get Report)  issued an apology for mishandling packages destined for Huawei Technologies amid accusations that it deliberately diverted four parcels addressed to the Chinese tech giant's offices in Asia. Shares ended off nearly 1% to $158.45.

Electronic payment technology company Global Payments ( GPN - Get Report) said it agreed to buy credit card transaction firm Total System Services ( TSS) in an all-stock deal valued at $21.5 billion. Global Payments fell 3% to $148.87, while Total System Services climbed 4.8% to $118.84.
 
Nio ( NIO)  shares rose after the Chinese clean-energy carmaker and Tesla  ( TSLA - Get Report)  rival posted stronger-than-expected first-quarter earnings even as subsidies for its flagship sedan waned. Shares of Nio advanced 3.6% to $4.
 
In economic news, the Conference Board said consumer confidence improved in May, following an increase in April, rising to 134.1 from April's figure of 129.1. Analysts were expecting the index to rise to 130.
  
Lynn Franco, senior director of economic indicators at the Conference Board, said in a statement that consumer confidence "is now back to levels seen last Fall when the Index was hovering near 18-year highs."
 

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