Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average
ended lower Tuesday after the blue-chip index fell 0.7% in the previous session, coming off its record high reached last week.
- Michael Kors Holdings Ltd. (KORS) reached a deal to buy to buy Italian fashion house Gianni Versace SpA for $2.12 billion.
- Facebook Inc. (FB) shares largely recovered from an early selloff after Instagram's co-founders announced they will leave the company.
Wall Street Overview
Stocks ended mixed on Tuesday, Sept. 25, amid concerns over the fate of U.S.-China trade talks, rising oil prices and ahead of Wednesdays decision on interest rates by the Fed.
President Trump, addressing the United Nations on Tuesday, targeted China, saying the U.S. would no longer tolerate unfair trade deals.
"The U.S. will not be taken advantage of any longer," Trump said, adding that those days were over and the U.S. will "no longer tolerate such abuse."
China on Monday accused the U.S. of "trade bullyism" soon after the U.S imposed tariffs on $200 billion in Chinese goods. China countered with tariffs on $60 billion in U.S. products.
The Dow Jones Industrial Average
The Federal Reserve began a two-day meeting on Tuesday. It's expected the central bank will raise interest rates for the third time in 2018 in an effort to prevent the economy from growing too fast. An announcement from the Fed will be made at 2 p.m. ET on Wednesday, Sept. 26.The co-founders of photo-sharing app Instagram will leave parent company Facebook Inc. ( FB) in the coming weeks.
The departure of Kevin Systrom and Mike Krieger, who co-founded Instagram eight years ago, was first reported by The New York Times. Systrom confirmed the news in a statement that said, "We're planning on taking some time off to explore our curiosity and creativity again."
Systrom, Instagram's CEO, and Krieger, who serves as chief technical executive, launched the app in 2010. It was bought by Facebook in 2012 for $1 billion. Some estimates have pegged its value at more than $100 billion today if it was a stand-alone company.
Facebook closed slightly lower Tuesday, largely recovering from an early selloff on the departure news.
"We must increase the velocity of innovation that is relevant to our customers, inspires our partners, and is meaningful to our business," CEO Kevin Johnson said in a memo to employees viewed by Bloomberg. "To accomplish this, we are going to make some significant changes to how we work as leaders in all areas of the company."
Johnson added that "starting next week and into mid-November there will be leadership shifts and non-retail partner impacts as we evolve the direction of teams across the organization in size, scope and goals."
Starbucks shares rose 0.4%.
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Sonic Corp. (SONC) will be acquired by Inspire Brands, the owner of Arby's and Buffalo Wild Wings, for $2.3 billion, or $43.50 a share. Sonic shares jumped 19%.
Michael Kors Holdings Ltd. (KORS) confirmed Tuesday it reached a deal to buy Italian fashion house Gianni Versace SpA for $2.12 billion. Michael Kors rose 2%.
Ascena Retail Group Inc. (ASNA) jumped 11% after the retailer, which owns chains Lane Bryant and Ann Taylor, topped fiscal fourth-quarter earnings and sales forecasts.
Jabil Inc. (JBL) posted fiscal fourth-quarter adjusted earnings of 70 cents, 2 cents ahead of estimates. The global manufacturing services company said it expects first-quarter adjusted earnings of between 79 cents to 99 cents a share; analysts expect 88 cents. The stock declined 7%.
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