Here Are 3 Hot Things to Know About Stocks Right Now

  • With a sharp decline Tuesday, the Dow Jones Industrial Average  turned lower for 2018.
  • The Dow is now more than 2,200 points below its all-time high reached in late January.
  • Stocks in Italy fell 2.65% amid a political crisis in the eurozone's third-largest economy.

Wall Street Overview

Stocks fell sharply Tuesday, May 29, as a political crisis in Italy rocked markets across the globe.

The Dow Jones Industrial Average    tumbled 391 points, or 1.58%, to 24,361. The S&P 500  declined 1.16% and the Nasdaq  was down 0.50%.

Laggards on the Dow included General Electric Co. (GE) , JPMorgan Chase & Co. (JPM) , American Express Co. (AXP) and Goldman Sachs Group Inc. (GS) .

Stocks briefly had come off lows earlier Tuesday after consumer confidence in May rose to 128 from a revised 125.6 in April, the Conference Board said.

European stocks fell on Tuesday after Italy President Sergio Mattarella appointed a caretaker government, led by a former International Monetary Fund official, and paved the way for new national elections in the fall that could be fought over Italy's eurozone membership. Stocks in Italy fell 2.65%.

"The economic recovery in the United States and around much of the world appears to be intact and the Italian situation seems to be more of a temporary political problem and not something larger, however, crises and contagion often start in a small way and then move in unpredictable ways, so some caution is warranted," said Chris Zaccarelli, chief investment officer, Independent Advisor Alliance.

Oil prices in the U.S. were lower Tuesday following reports that Saudi Arabia may lead an effort to pump more crude into the market in an effort to offset lost production from OPEC member state Venezuela, which may come under international sanctions following the disputed election of President Nicolas Madura. West Texas Intermediate crude fell 1.7% to settle at $66.73 a barrel.

Starbucks Corp. (SBUX)  closed 8,000 stores Tuesday afternoon for four hours to complete racial bias training after facing significant criticism for its response to discrimination issues in recent weeks.

The coffee chain came under fire in April after two black men were arrested simply for waiting in a Philadelphia Starbucks store without ordering anything.

Shares of Universal Display Corp. (OLED) jumped 3.9% on a report Apple Inc. (AAPL) plans to use OLED screens in new iPhone models planned for 2019, according to South Korea's Electronic Times. 

Kinder Morgan Inc. (KMI)  rose 0.98% after the company agreed to sell the Trans Mountain Pipeline project to the government of Canada for C$4.5 billion.

Chinese authorities were set to approve Qualcomm Inc.'s (QCOM) planned $44 billion acquisition of NXP Semiconductors NV (NXPI) in the next few days, The Wall Street Journal reported, citing people familiar with the matter.

China's State Administration for Market Regulation, which has been conducting the antitrust review, held a meeting on the matter Monday, according to the people. They said a contingent of Qualcomm's legal team arrived in Beijing over weekend to hammer out final details, the Journal reported.

Shares of Walt Disney Co. (DIS)  fell 2.4% after box office sales for "Solo: A Star Wars Story" came in well below expectations, making just $83.3 million at the North American box office in the Han Solo spinoff's opening weekend. The company's bad day was compounded by its decision to cancel sitcom 'Roseanne' after racist tweets from star Roseanne Barr. 

JPMorgan, Apple and Goldman Sachs are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells JPM, AAPL or GS? Learn more now.

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