The major averages had a mixed performance as the Dow was weighed down by a post-earnings slide in Home Depot (HD) but tech stocks' outperformance pushed the Nasdaq higher. In trade news, CNBC reported that U.S. President Donald Trump threatened higher tariffs on Chinese goods if the country does not make a deal on trade, but the market largely shrugged off the news as a continuation of threats that have been present for some time amid the trade negotiations.
ECONOMIC EVENTS: In the U.S., housing starts rebounded 3.8% to a 1.314M unit pace in October. Building permits bounced 5.0% in October to a 1.461M unit rate.
COMPANY NEWS: Home Depot shares slid 5% after the home improvement retailer reported slightly better than expected earnings in the third quarter and backed its full-year profit outlook, but also posted lower than expected sales and trimmed its same-store sales growth guidance.
Kohl's (KSS) shares suffered even more than Home Depot's, falling nearly 20% after the department store operator reported worse than expected third quarter earnings and cut its profit view for the fiscal year.
In M&A news, Bloomberg's Ed Hammond, Nabila Ahmed and Dinesh Nair reported that Medicines Co. (MDCO) has attracted takeover interest from companies including Novartis (NVS), which has been holding talks about a potential acquisition. Following the report, Medicines Co. shares jumped about 20%.
Meanwhile, the Los Angeles Times reported that California Governor Gavin Newsom has blocked the approval of new hydraulic fracking in the state until the permits for such projects can be examined by an independent panel of scientists. Following the news, KeyBanc analyst said he expected shares of Berry Petroleum (BRY) to react negatively to the report. Shares of Berry Petroleum closed 21.5% lower, although the company issued a statement that this moratorium will not impact the company's 2019 financial performance and only potentially impacts its future thermal diatomite wells.
MAJOR MOVERS: Among the noteworthy gainers was Myovant Sciences (MYOV), which surged 113% after it said that the primary efficacy endpoint was met in its Phase 3 HERO study. Also higher was TJX (TJX), which gained 2% as the discount retailer reported better than expected quarterly results in a break from its high-profile peers.
Among the notable losers was Macy's (M), which fell 11% amid the reports from its rivals and after The Next Web reported that the company's website was hacked in October with malicious scripts in an attempt to steal customers' payment information. Also lower was Slack Technologies (WORK), which slid 8% after Microsoft (MSFT) said that its Teams communication app now has over 20M daily active users.
INDEXES: The Dow fell 102.20, or 0.36%, to 27,934.02
, the Nasdaq gained 20.72, or 0.24%, to 8,570.66
, and the S&P 500 declined 1.85, or 0.06%, to 3,120.18