Stocks opened little changed after rallying in the pre-market trading session upon the release of the monthly jobs data. The report showed less than expected job growth and added another data point as the Fed considers it rate plans for this month's upcoming meeting and in 2019. The averages drifted during the first hour of trading, but the sellers soon gained control. The selling intensified during the afternoon, pushing the market to session lows amid continued concerns about the trade war with China and the slowing of global growth.
ECONOMIC EVENTS: In the U.S.:
In energy news, AFP reported that Iraq said OPEC and its partners have agreed on 1.2M bpd output cut. In addition, Baker Hughes reported that the U.S. rig count is down 1 from last week to 1,075 rigs.
COMPANY NEWS: Shares of Cronos Group (CRON) surged 21.7% after Altria (MO) announced it will invest $1.8B for a roughly 45% stake in the Canadian cannabis company. Meanwhile, Altria also said it will discontinue its MarkTen and Green Smoke e-cigarette products and its Verve oral nicotine.
On the earnings front, Broadcom (AVGO) rose 0.6% after the company reported better than expected fourth quarter results, raised its target dividend 51% to $2.65 for fiscal 2019, and announced an additional $6B share repurchase authorization.
Bayer (BAYRY) shares were in focus after Reuters reported that Elliott Management has taken a stake in the company. Bloomberg later reported that the activist investor thinks Bayer should consider splitting up into separate pharmaceutical and agricultural chemical companies.
In IPO news, biotech company Moderna (MRNA) opened at $22 per share after its initial public offering was priced at $23 per share. Shares of the messenger RNA technology company, which was valued at roughly $7.5B based on its IPO price, closed at $18.60.
MAJOR MOVERS: Among the noteworthy gainers was American Outdoor Brands (AOBC), which gained 15.4% after reporting quarterly results.
Among the notable losers was Akorn (AKRX), which dropped 23.8% after Delaware's Supreme Court upheld a lower court ruling that allowed Fresenius SE (FSNUY) to terminate its planned $4.3B buyout of the generic drugmaker. Also lower were United Natural Foods (UNFI) and Big Lots (BIG), which fell 24.6% and 23%, respectively, after reporting quarterly results.
INDEXES: The Dow fell 558.72, or 2.24%, to 24,388.95, the Nasdaq lost 219.01, or 3.05%, to 6,969.25, and the S&P 500 declined 62.02, or 2.3%, to 2,633.46.
Cronos Group
+2.29 (+21.96%)
Altria Group
-0.22 (-0.40%)
Broadcom
+1.88 (+0.83%)
Bayer
+ (+0.00%)
Moderna
+ (+0.00%)
Changed to SWBI
+1.92 (+15.78%)
Akorn
-1.34 (-23.97%)
Fresenius SE
+ (+0.00%)
United Natural Foods
-4.88 (-24.73%)
Big Lots
-9.3 (-23.08%)