Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average rebounded to end in positive territory Monday after a volatile start to the day.
- The S&P 500 also ended near even on the day after closing Friday with a weekly decline, its second straight.
- The bond market is closed for Columbus Day.
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Wall Street Overview
The Dow Industrials rebounded from a morning slide to end the day higher on Monday, Oct. 8. The S&P 500 ended only slightly lower and the Nasdaq trimmed earlier losses.
The Dow Jones Industrial Average I:DJI rose 40 points, or 0.15% to 26,487 after earlier trading as low as 26,223. The S&P 500 ended down 1 point at 2,884.50. The Nasdaq trimmed earlier declines to trade down 0.07%.
Big tech names were weak. Apple Inc. (AAPL) - Get Apple Inc. Report declined 0.1%, and Amazon.com Inc. (AMZN) - Get Amazon.com, Inc. Report was down 1%. Alphabet Inc. (GOOGL) - Get Alphabet Inc. Class A Report slid 1% after The Wall Street Journal reported Google exposed the user data of hundreds of thousands of users of the Google+ social network and failed to disclose the issue this spring.
Stocks in the U.S. closed lower Friday, Oct. 5, after investors digested a weak U.S. payrolls number and grew concerned over a three-day surge in bond yields. The 10-year bond yielded 3.233% on Friday. The bond market is closed Monday for Columbus Day.
"Last week's concerns of higher interest rates are weighing on the markets again Monday," said Jeff Marks, senior portfolio analyst at Action Alerts PLUS. "We are seeing a nice bounce in some consumer discretionary names, but technology and FANG are lagging and oil is falling on lower commodity prices."
Shares in Shanghai tumbled Monday after the Chinese government injected extra money into its cooling economy and as Wall Street feared a further jump in long-term bond yields.
China injected money into its economy by reducing bank reserve levels. Economists said the change would free up about 1.2 trillion yuan ($175 billion) for additional lending. The tariff battle with the United States has pressured growth in the world's second-largest economy. The Shanghai Composite Index fell 3.7%.
The Department of Homeland Security said it has "no reason to doubt the statements" from Apple and Amazon.com that denied their systems were compromised following a report from Bloomberg last week that said attempts were made by the Chinese military to insert spying chips on server motherboards ultimately used by many U.S. companies.
"The Department of Homeland Security is aware of the media reports of a technology supply chain compromise," the agency said on Saturday, Oct. 6. "At this time we have no reason to doubt the statements from the companies named in the story."
Apple's top security officer told Congress in a letter that the tech giant found no sign of suspicious transmissions or other evidence that it had been penetrated in a sophisticated attack on its supply chain, Reuters reported.
General Electric (GE) - Get General Electric Company Report rose 3% to $13.55 on Monday after analysts from Barclays boosted their price target on the stock as the industrial conglomerate attempts to realign its restructuring plans under new CEO Larry Culp.
Ford Motor Co. (F) - Get Ford Motor Company Report was up 1.5% after the automaker said it would reorganize its salaried workforce worldwide, flatten its business operations and create a more efficient company that results in fewer white collar jobs.
Ford said it was in the "early stages of reorganizing" its global salaried work force. The automaker said the reorganization "will result in headcount reduction over time and this will vary based on team and location." Ford has 201,000 employees globally, including an estimated 70,000 salaried workers.
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Ensco PLC (ESV) and Rowan Cos. (RDC) said Monday they reached an agreement to merge in an all-stock deal with an enterprise value of $12 billion. Rowan shareholders will receive 2.215 Ensco shares for each Rowan share they own under terms of the deal. Ensco rose 3.5% and Rowan gained 4%.
Walmart Inc. (WMT) - Get Walmart Inc. Report said Monday it was partnering with movie studio Metro Goldwyn Mayer to create content for its Vudu video-on-demand service, where monthly viewership remains well below that of competitors like Netflix Inc. (NFLX) - Get Netflix, Inc. Report and Hulu LLC. Walmart rose 1.5%.
Arconic Inc. (ARNC) - Get Arconic Corp. Report gained 7% after Reuters reported Blackstone Group LP (BX) - Get Blackstone Inc. Report , Carlyle Group LP (CG) - Get Carlyle Group Inc Report , Onex Corp. and Canada Pension Plan Investment Board have joined forces in a bid to acquire the aluminum products maker. Reuters cited people familiar with the matter.
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