The major averages were mixed and trading in a tight range for most of the morning prior to a Reuters headline that said a senior U.S. official believes the signing of the "phase one" trade deal between the U.S. and China could be pushed out to December as the sides continue to negotiate terms and a signing venue. That headline sunk the averages, but they have since recovered most of those losses and the S&P and Dow are only modestly lower in early afternoon trading while the Nasdaq lags.
ECONOMIC EVENTS: In the U.S., a 0.3% decline was reported in productivity in the third quarter, which undershot estimates, though Q2 productivity growth was revised higher to a 2.5% pace from 2.3%. Unit labor costs rose 3.6% in the third quarter after a downwardly revised 2.4% gain in Q2.
In trade news, a senior Trump administration official reportedly told Reuters that a meeting between U.S. President Donald Trump and Chinese President Xi Jinping to sign a "phase one" trade deal could be delayed until December as talks continue over terms and venue.
TOP NEWS: Shares of HP Inc. (HPQ) have jumped 10% to trade near $20 per share after Cara Lombardo of The Wall Street Journal reported that Xerox (XRX) is considering making a cash-and-stock takeover offer for the rival PC and printer maker. CNBC's David Faber subsequently added, based on his own sources, that Xerox has already put forward a cash-and-stock takeover offer to HP that includes a "real premium" to the current share price. Xerox is in "full bear hug mode" and is committed to a deal, Faber added. The Journal came back with its own addition to the story, reporting that it has been told by sources that Xerox's bid values HP Inc. at less than $23 per share.
In other M&A news, Aircastle (AYR) announced a deal to be acquired by a newly-formed entity controlled by affiliates of Marubeni and Mizuho Leasing. Under the terms of the merger agreement, Aircastle shareholders will receive $32.00 in cash for each common share of Aircastle, representing a total valuation of approximately $2.4B, or approximately $7.4B including debt. Additionally, Taylor Morrison Home (TMHC) announced an agreement to acquire rival homebuilder William Lyon Homes (WLH) in a cash and stock deal that values William Lyon Homes at $21.45 per share, or $2.4B including assumption of debt.
MAJOR MOVERS: Among the noteworthy gainers was Constellation Pharmaceuticals (CNST), which surged nearly 100% higher after it reported better than expected third quarter results as well as new data on CPI-0610, its experimental treatment for myelofibrosis. Also higher after reporting quarterly results were Boingo Wireless (WIFI) and LendingClub (LC), which gained a respective 25% and 14%.
Among the notable losers was Supernus (SUPN), which slid 31% after it reported quarterly results and said its Phase 3 P301 trial of SPN-810 for the treatment of IA in children with ADHD did not meet its primary endpoint. Also lower after reporting quarterly results were Fluidigm (FLDM) and Poly (PLT), which fell 50% and 39%, respectively.
INDEXES: Near midday, the Dow was down 43.10, or 0.16%, to 27,449.53, the Nasdaq was down 42.48, or 0.50%, to 8,392.20, and the S&P 500 was down 4.64, or 0.15%, to 3,069.98.
HP Inc.
+1.79 (+9.73%)
Xerox
+0.58 (+1.59%)
Aircastle
+4.63 (+16.82%)
Acquired by TMHC
+1.555 (+8.45%)
Taylor Morrison
-1.61 (-6.80%)
Constellation Pharmaceuticals
+15.04 (+102.17%)
Boingo Wireless
+2.43 (+25.08%)
Symbol changed to POLY
-15.325 (-38.88%)
Fluidigm
-2.565 (-50.05%)
Supernus
-9.075 (-31.14%)
LendingClub
+1.795 (+13.60%)