Stocks opened in negative territory and stayed there for the remainder of the session. The averages continued in the red as trade tensions with China continue and after the New York Times reported that Robert Mueller will retire from the Justice Department, prompting a retaliatory tweet from President Trump. The indexes recovered somewhat from earlier losses but still ended the day broadly lower.
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. Following the news, President Trump tweeted, "Nothing changes from the Mueller Report. There was insufficient evidence and therefore, in our Country, a person is innocent. The case is closed! Thank you."
In trade news, CNBC's Eunice Yoon reported that a comment from a China state planner could mean that China could restrict sales of rare earth metals to the U.S. as a way to gain leverage in trade talks with the U.S.
TOP NEWS: Marvell (MRVL) shares were 3.1% higher 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.
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 4% 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.
Cypress Semiconductor (CY) shares jumped 12% after Bloomberg reported that the company is working with advisers to explore strategic options, including a potential sale.
Additionally, Axel Springer (AXELF) confirmed that it is in talks with KKR (KKR) as well as Friede Springer for a potential strategic investment of KKR in the German company. The announcement followed reports saying that KKR and the Springer family are preparing a bid to take Axel Springer private.
MAJOR MOVERS: Among the noteworthy gainers was Cara Therapeutics (CARA), which rose about 20% 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 11.7% after reporting quarterly results.
Among the notable losers was Dick's Sporting Goods (DKS), which slid 5.9% after it reported quarterly results and raised its guidance for fiscal 2019. Also lower after reporting quarterly results was Canada Goose (GOOS), which dropped 30.9%.
INDEXES: The Dow fell 221.36, or 0.87%, to 25,126.41, the Nasdaq lost 60.04, or 0.79%, to 7,547.31, and the S&P 500 declined 2,783.02, or 0.69%, to 19.37.
Marvell
+0.685 (+3.21%)
NXP Semiconductors
-0.435 (-0.49%)
SentinelOne
-0.11 (-1.59%)
T-Mobile
+0.29 (+0.38%)
Cypress Semiconductor
+1.87 (+12.15%)
Changed symbol to MDNT
+0.59 (+4.15%)
Axel Springer
+ (+0.00%)
KKR
-0.33 (-1.40%)
Cara Therapeutics
+3.57 (+19.82%)
Heico
+12.04 (+11.46%)
Dick's Sporting
-2.1 (-5.87%)
Canada Goose
-15.285 (-31.21%)