Stocks opened in negative territory with the Dow having slipped nearly 400 points just after noon. The averages have continued to be in the red following yesterday's losses, which occurred after President Donald Trump said over the long weekend that the U.S. was "not ready" to reach a trade deal with China and the Chinese government seized a bank for the first time in over 20 years.
ECONOMIC EVENTS: In the U.S., chain store sales rose 1.3% on the week ended May 25, according to The Retail Economist, up from the 0.1% gain previously. The U.S. Richmond Fed manufacturing index edged up 2 points to 5 in May after falling 7 points to 3 in April. The U.S. Department of the Treasury expanded its watchlist of trading partners to 21 from 12 and determined that 9 countries warranted close monitoring, including China, Germany, Ireland, Italy, Japan, Korea, Malaysia, Singapore, and Vietnam. The Treasury also did not name China or any of its trading partners a currency manipulator as the Treasury has determined that "direct intervention by the People's Bank of China in the last year has been limited."
Meanwhile, the New York Times reported that Robert Mueller said he will retire from the Justice Department, ending his two-year appointment as special counsel overseeing the Russia investigation.
TOP NEWS: Marvell (MRVL) shares are 2.3% higher after noon after the company entered into an agreement under which NXP (NXPI) will acquire Marvell's Wi-Fi Connectivity business in an all-cash, asset transaction valued at $1.76B. This transaction has been approved by the boards of directors of NXP and Marvell and is expected to close by calendar Q1 of 2020.
In other M&A-related news, CNBC's David Faber reported that Sprint (S) and T-Mobile (TMUS) continue to meet with the Department of Justice in Washington to figure out a path forward for their proposed tie-up. While Faber said it is unclear what the companies are willing to offer and what the DOJ is asking for in terms of getting the deal done, Reuters' Sheila Dang reported last night that the companies may sell Boost Mobile, which is expected to receive bids from a number of potential buyers, valuing the assets at as much as $3B.
Meanwhile, shares of FireEye (FEYE) rose 2.1% after the company acquired Verodin for approximately $250M in cash and stock. In connection with the deal, FireEye lowered its earnings and revenue outlook for the second quarter and fiscal 2019.
Additionally, Cypress Semiconductor (CY) shares jumped 11.1% after Bloomberg reported that the company is working with advisers to explore strategic options, including a potential sale.
MAJOR MOVERS: Among the noteworthy gainers was Cara Therapeutics (CARA), which rose 12.5% after announcing topline data from the KALM-1 pivotal Phase 3 trial of Korsuva Injection in hemodialysis patients with moderate-to-severe chronic kidney disease-associated pruritus. Also higher was HEICO (HEI), which gained 9.7% after reporting quarterly results.
Among the notable losers was Dick's Sporting Goods (DKS), which slid 6.4% after it reported quarterly results and raised its guidance for fiscal 2019. Also lower after reporting quarterly results was Canada Goose (GOOS), which dropped 26%.
INDEXES: At midday, the Dow was down 338.45, or 1.34%, to 25,009.32, the Nasdaq was down 84.54, or 1.11%, to 7,522.81, and the S&P 500 was down 33.90, or 1.23%, to 2,767.97.
Marvell
+0.41 (+1.92%)
NXP Semiconductors
-1.085 (-1.21%)
SentinelOne
-0.075 (-1.08%)
T-Mobile
+0.38 (+0.50%)
Changed symbol to MDNT
+0.28 (+1.97%)
Cypress Semiconductor
+1.69 (+10.98%)
Cara Therapeutics
+2.21 (+12.27%)
Heico
+9.73 (+9.26%)
Dick's Sporting
-2.14 (-5.99%)
Canada Goose
-13.03 (-26.61%)