Here Are 3 Hot Things to Know About Stocks Right Now
– The S&P 500 and the Nasdaq rose on Monday after falling 1% and 2.6%, respectively, last week.
– CBS Corp. (CBS) fell 3.4% after longtime CEO Les Moonves resigned amid new allegations of sexual harassment.
– Apple Inc. (AAPL) was down 1% after the iPhone maker said said some of its products could be hit in the next round of tariffs on China-made goods.
Wall Street Overview
Stocks fluctuated on Monday, Sept. 10, as investors reset their focus on developments in the ongoing trade war between Washington and Beijing.
The Dow Jones Industrial Average slipped 6 points, or 0.03%, to 25,910, the S&P 500 was up 0.27%, but the Nasdaq moved higher by 0.23%.
Donald Trump went after China at the end of last week, saying he was ready to impose tariffs on essentially all of the goods imported from the country. China’s trade surplus with the U.S. widened to a record $31 billion in August as exports surged despite the first round of tariffs targeting $50 billion in China-made goods.
Trump over the weekend also pushed Ford Motor Co. (F) and Apple Inc. (AAPL) to move their manufacturing operations to the U.S. to avoid the tariffs.
Ford said it wouldn’t begin building the Focus Active hatchback in the U.S., despite a tweet from Trump that suggested the company could do so instead of importing it from China.
“It would not be profitable to build the Focus Active in the U.S. given an expected annual sales volume of fewer than 50,000 units,” Ford said Sunday.
Ford shares rose 1.2%.
Ford Drives Higher After Refuting the President on Building Focus Active in U.S.
Apple fell 1% on Monday after a weekend tweet from Trump that warned consumers would be forced to pay higher prices for Apple’s iPhones and computers once fresh tariffs on China-made imports were imposed by the White House.
Apple said Friday, Sept. 7, that the current tariff proposal, which targets $200 billion in China-made goods, could impact pricing for AirPods and the Apple Watch, but didn’t specifically mention the iPhone in a letter to the U.S. government.
“Our concern with these tariffs is that the U.S. will be hardest hit, and that will result in lower U.S. growth and competitiveness and higher prices for U.S. consumers,” Apple said.
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Les Moonves, the longtime chairman and CEO of CBS Corp. (CBS) , resigned Sunday, Sept. 9, after more than two decades with the broadcaster amid new allegations of sexual harassment and inappropriate conduct.
The ouster of Moonves followed new revelations in the Sunday edition of the New Yorker magazine, which included allegations from six different women who claimed Moonves used physical intimidation and violence as part of a pattern of abusive sexual behavior, all of which he denied.
Joseph Ianniello, the company’s chief operating officer, will serve as interim CEO while a formal search for Moonves’ replacement is conducted.
CBS shares declined 3.4%.
CBS Ousts Les Moonves Amid New Allegations of Sexual Harassment
Jack Ma, co-founder and executive chairman of Alibaba Group Holding Co. (BABA) , said Monday he would step down as chairman of the e-commerce giant in exactly one year on Sept. 10, 2019. He will remain on the company’s board until 2020.
Alibaba CEO Daniel Zhang will succeed Ma in 12 months. Zhang, who has been CEO since 2015, will continue in that role. Zhang is the architect of Alibaba’s “Singles’ Day,” the one-day internet shopping extravaganza.
American depositary receipts of Alibaba fell 3% on Monday.
What’s Worse: Trump Attacking Apple or Alibaba’s Jack Ma Stepping Aside?
Alibaba Shares Dip as Billionaire Co-Founder Jack Ma Plans Leadership Handover
Snap Inc. (SNAP) declined 2.5% after the company announced that Imran Khan, chief strategy officer, would be leaving to pursue other opportunities. Khan is just the latest in a string of departures at the parent company of messaging app Snapchat.
Science Applications International Corp. (SAIC) said it would buy Engility Holdings Inc. (EGL) in a stock deal valued at $2.5 billion, including the repayment of debt. The agreement values Engility at $40.44 a share. Engility fell 3% on Monday to $35.03.
United Rentals Inc. (URI) gained 5.3% after it said it would buy privately held equipment rental company BlueLine Rental in a cash deal valued at $2.1 billion.
Fred’s Inc. (FRED) jumped 62.6% after Walgreens Boots Alliance Inc. (WBA) said it would acquire pharmacy patient prescription files and related pharmacy inventory of 185 Fred’s stores in 10 Southeastern states.