Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average declined sharply on Monday after finishing last week with a gain of 2.8%.
- Apple Inc. (AAPL - Get Report) fell 5% on Monday after a key supplier issued a profit warning, increasing investor concerns that iPhone demand may be waning.
- Alibaba Group Holding Ltd. (BABA - Get Report) generated a record $30.8 billion in sales on Singles' Day - the 10th anniversary of the sales event.
Wall Street Overview
Stocks ended sharply lower on Monday, Nov. 12, as shares of Apple Inc. (AAPL - Get Report) tumbled, sending technology issues sharply lower. Concern about a mounting trade war with China also weighed on stocks.
Apple fell Monday after a key supplier issued a profit warning, increasing investor concern that iPhone demand may be waning heading into the key holiday sales period.
Lumentum Holdings Inc. (LITE - Get Report) , which supplies 3D chips for Apple iPhone's facial recognition system, said its current quarter sales would come in $20 million weaker -- at $335 million -- than originally forecast thanks to a reduction in shipment requests from an unnamed customer. Lumentum also slashed its earnings forecast to a range of $1.15 to $1.34 from a previous estimate of $1.60 to $1.75 a share. Lumentum sank 33%.
- Apple Extends Slump After iPhone Parts Supplier Lumentum Issues Profit Warning
- Lumentum Sinks After It Cuts Earnings and Revenue Outlook
The Dow Jones Industrial Average fell 602 points, or 2.3%, to 25,387, the S&P 500 declined 2%, and the tech-heavy Nasdaq slid 2.8%.
However, the annual sales growth rate for Singles' Day fell to 27% from 39%, the smallest rate in the event's 10-year history, according to Reuters.
American depositary receipts of Alibaba fell 17%.
Athenahealth Inc. (ATHN) will be acquired by private-equity firms Veritas Capital and Evergreen Coast Capital, a subsidiary of Elliott Management, for $5.7 billion cash, confirming rumors of a potential sale that were reported over the weekend.
The two firms purchased the Massachusetts-based healthcare software company for $135 a share. That's well above Friday's close of $120.35, but lower than the $160 a share that Elliott offered for the company in May. Athenahealth rose 10% to $131.97 on Monday.
Qualtrics last week filed for an initial public offering. Qualtrics said in a regulatory filing that it has more than 9,000 customers including more than 75% of Fortune 100 companies.
SAP fell 6%.
California utilities fell sharply for a second session, as the deadliest wildfires in the state's history raised fears of company liability charges. PG&E Corp. (PCG - Get Report) fell $6.95, or 17%, to $23.97, it's lowest close in more than 10 years. Edison International (EIX - Get Report) fell $7.45, or 12.2%, to $53.55.
The U.S. dollar index, which tracks the greenback against a basket of six global currency peers, traded past a 16-month high overnight at 97.50 as both the euro and the pound drifted lower and investors raised bets on faster rate hikes from the Federal Reserve, which is essentially the only major central bank pushing a hawkish monetary policy stance.
Global oil prices spiked Monday after Saudi Arabia said it would trim exports by around half a million barrels a day next month in order to address the market's steep October declines while a meeting of OPEC's monitoring committee hinted at extending production cuts into next year.