Here Are 3 Hot Things to Know About Stocks Right Now
- The S&P 500 ended higher on Monday after closing Friday with a weekly gain of 2.4%, the index's biggest weekly increase since March.
- Verizon Communications Inc. (VZ) rose 0.9% after saying it would split its operations into three separate units as it moves into the 5-G arena.
- Amazon.com Inc. (AMZN) was down 2.5% on Monday after Donald Trump said his administration was looking into antitrust violations by the online retailer and others.
Wall Street Overview
Stocks traded mixed on Monday, Nov. 5, as stronger-than-expected U.S. jobs data reignited bets on faster Federal Reserve rate hikes and as investors looked ahead to the midterm elections on Tuesday, Nov. 6, that could change the composition - and direction - of Congress for at least the next two years.
With the U.S. economy adding 250,000 new jobs in October, and wages rising at the fastest pace in nearly a decade, investors now expect a full compliment of rate hikes from the Fed as it plots its path toward "neutral" in the months ahead. The Federal Reserve's monetary policymaking arm - the Federal Open Market Committee - is scheduled to meet on Wednesday, Nov. 7. While the Fed isn't expected to lift rates at the meeting, it is expected to do so at its meeting next month.
As for the elections, many prognosticators predict the House of Representatives will flip to the Democrats while Republicans will remain with a majority in the Senate.
The Dow Jones Industrial Average rose 191, 0.76%, to 25,462, the S&P 500 rose 0.56%, and the Nasdaq slumped 0.38%.
Apple Inc. (AAPL) fell 3% on a report from the Nikkei that said iPhone XR assemblers Foxconn and Pegatron were asked to halt new production capacity, with the former producing 100,000 fewer units each day than first anticipated in its Taiwan-based facility. Pegatron also was holding back on adding extra production lines until it gets more clarity on XR demand from Apple, the Nikkei reported, without saying where it got the information.
"We are looking at [antitrust] very seriously," Trump said in an interview with Axios that aired on Sunday. "Look, that doesn't mean we're doing it, but we're certainly looking and I think most people surmise that, I would imagine." Trump said he also was looking into possible violations by Facebook Inc. (FB) and Alphabet Inc. (GOOGL) .
Separately, Amazon has dropped the minimum amount shoppers need to spend to qualify for free shipping. Amazon shoppers usually have to spend $25 to qualify for free shipping. Amazon's offer started on Monday for orders that will arrive in time for Christmas.
Verizon Communications Inc. (VZ) said Monday it would split its operations into three separate units as it transitions its business toward the 5-G area amid a fierce battle for customers with rivals AT&T Inc. (T) , Sprint Corp. (S) and T-Mobile U.S. Inc. (TMUS) .
Verizon said the three new divisions will separate consumer and business operations as well as creating a third Verizon Media Group/Oath unit that will house its media, advertising and technology business. Shares rose 1%.
Lowe's Cos. (LOW) said Monday it planned to close 20 underperforming stores in the U.S. and 31 in Canada. The home-improvement retailer said the closures would reduce fiscal 2018 earnings by 28 cents to 34 cents a share. Lowe's traded flat on Monday.
SeaWorld Entertainment Inc. (SEAS) posted third-quarter earnings on Monday of $1.10 a share, beating forecasts by 2 cents. Revenue was $483.2 million vs. estimates of f $472.1 million. SeaWorld said third-quarter attendance at its parks rose 9.7%. The stock fell 4%.
MGM Resorts International (MGM) has hired Morgan Stanley and law firm Weil, Gotshal & Manges to start studying the idea of a merger with Caesars Entertainment Corp. (CZR) , the New York Post reported, citing a gaming source close to the situation. No offer was on the table, however, sources told the Post.
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