Stocks tumbled on Monday, Jan. 29, as bond yields spiked.
The Dow Jones Industrial Average declined by 177 points, or 0.67%, to 26,439. The S&P 500 also declined by 0.67% and the Nasdaq slid 0.52%. Leading the Dow lower on Monday were Caterpillar Inc. (CAT - Get Report) and Apple Inc. (AAPL - Get Report) .
Apple fell 2% following a report from Nikkei that said the tech giant was cutting iPhone X production because of weaker demand.
The Dow, S&P 500 and Nasdaq all finished at new highs on Friday, Jan. 26.
Benchmark 10-year U.S. Treasury yields rose to a near four-year high of 2.71% on Monday amid increasing concerns over faster inflation readings in the world's biggest economy. Two-year notes were also on the move, rising to 2.15%, the highest since 2008.
Besides digesting the spike in bond yields, Wall Street was preparing Monday for a busy week of earnings reports, Donald Trump's "State of the Union" address and Janet Yellen's last Federal Reserve meeting as chair of the central bank.
Dr Pepper Snapple shareholders will receive $103.75 a share in a special cash dividend and retain 13% of the combined company. Keurig will take over a controlling 87% stake. The new company, which will be called Keurig Dr Pepper, is expected to rake in $11 billion in annual revenue.
Lockheed Martin Corp. (LMT - Get Report) reported fourth-quarter adjusted earnings of $4.30 a share on revenue of $4.04. Analysts expected earnings of $4.04 a share on sales of $14.73 billion. The defense contractor also said it expects 2018 profit of $15.20 to $15.50 a share; analysts predicted $14. Shares rose 1.8%.
Wynn Resorts Inc. (WYNN - Get Report) fell 9% on Monday after Chairman and CEO Steve Wynn resigned Saturday, Jan. 27, as finance chairman of the Republican National Committee amid allegations of sexual harassment and assault.
The deal would likely be the biggest deal in tech industry history, according to CNBC.
VMware shares fell 16% on Monday. Last week it was reported that Dell was conducting a review of its strategic options including a possible initial public offering and the acquisition of the remaining portion of VMware that it doesn't already own.
Trump is scheduled to deliver his first "State of the Union" address on Tuesday, Jan. 30, and he is expected to highlight immigration and national security issues, discuss trade deals and reveal some of his infrastructure plans.
As for Yellen, she will preside over her final meeting as Fed chair on Tuesday and Wednesday, Jan. 31. She will hand the reins to her successor, Jerome H. Powell. The Fed isn't expected to raise rates at the meeting but economists expect the central bank to lift rates when it next meets in March.
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