Stocks opened in negative territory and lost additional ground throughout the session. The losses were led by the Nasdaq, which lost more than 2.5% and was under extreme pressure all day due to a pullback in Apple (AAPL) shares and those of several of its suppliers. One of those suppliers, Lumentum (LITE), said it was notified by its biggest customer to cut production, which led to the 3D sensor maker lowering its near-term outlook. The report caused a cascade of selling in the tech sector, which now has 70% of its companies in correction territory. The losses today also put the Nasdaq underwater for the month after it had began November with a major rally. The Dow and S&P fared little better, as each also fell more than 2% for the day.
ECONOMIC EVENTS: In the U.S., no economic data of note was reported. In energy news, crude oil prices initially rose in reaction to a report that OPEC nations plan to cut production. However, West Texas Intermediate oil for December finished the day 0.4% lower at $59.93 a barrel, marking WTI's first settlement below $60 a barrel since February and a record 11 straight session declines.
COMPANY NEWS: Shares of Apple fell 5% after supplier Lumentum Holdings cut its outlook. While Lumentum did not call out Apple by name, its mention of a request from one of its "largest Industrial and Consumer customers for laser diodes for 3D sensing" to "materially reduce shipments" is widely believed to be referring to the iPhone maker. Meanwhile, shares of Lumentum plunged 33% following the profit warning.
Alibaba (BABA) reported $30.8B in gross merchandise value for its latest Singles Day, which is a new record for the selling festival but also represents a deceleration to 27% year-over-year growth from the 39% growth rate reported last year.
Shares of PG&E (PCG) and Edison International (EIX) declined 17% and 12%, respectively, as wildfires rage on in California. The Camp Fire, which began in the former's service territory, has now claimed the lives of over 30 people, according to media reports.
In M&A news, SAP (SAP) announced a deal to acquire Qualtrics, a provider of experience management software that had been set to come public via an IPO later this week, for $8B in cash. Athenahealth (ATHN) agreed to be acquired by Veritas Capital and Evergreen Coast Capital for $135 per share in cash, or approximately $5.7B.
Meanwhile, Comcast (CMCSA) was in focus after the American Cable Association asked the U.S. Department of Justice to investigate the business practices of the media giant. The announcement gained attention following a tweet from President Donald Trump saying that the ACA has "big problems" with Comcast. In response, Comcast told CNBC that it believes the letter from ACA is "without merit and constitutes an inappropriate attempt to gain leverage in the commercial marketplace."
MAJOR MOVERS: Among the noteworthy gainers was Apptio (APTI), which rose 51% after it agreed to be acquired by Vista Equity Partners for $38 per share. Also higher was Opko Health (OPK), which gained 21% after reporting quarterly results.
Among the notable losers was British American Tobacco (BTI), which slid 9% after the Wall Street Journal reported that the FDA is planning to propose a ban on menthol cigarettes. Also lower was GNC Holdings (GNC), which fell 19% after reporting quarterly results.
INDEXES: The Dow fell 602.12, or 2.32%, to 25,387.18 , the Nasdaq lost 206.03, or 2.78%, to 7,200.87 , and the S&P 500 declined 54.79, or 1.97%, to 2,726.22 .
Apple
-10.155 (-4.97%)
Lumentum
-18.445 (-32.97%)
Alibaba
-2.09 (-1.44%)
PG&E
-6.94 (-17.40%)
Edison International
-7.45 (-12.22%)
SAP
-6.91 (-6.38%)
Athena Technology Acquisition
+11.52 (+9.57%)
Apptio
+12.8 (+51.53%)
Opko Health
+0.615 (+19.81%)
British American Tobacco
-3.66 (-8.77%)
GNC Holdings
-0.83 (-19.62%)
Comcast
-0.32 (-0.83%)
Comcast
+ (+0.00%)