Stocks have been lower from the opening of trade after President Donald Trump told reporters in London that it might be better to wait until after the 2020 election to reach a trade deal with China. CNBC quoted the U.S. leader as having said: "In some ways, I like the idea of waiting until after the election for the China deal, but they want to make a deal now and we will see whether or not the deal is going to be right." When asked if he had a deadline for the deal, he added: "I have no deadline, no ... In some ways I think it is better to wait until after the election, if you want to know the truth." The comments have flamed trade worries that have been bubbling under the buoyant market for some time, prompting an extension of yesterday's selloff.
ECONOMIC EVENTS: In the U.S., no economic data of note were reported.
COMPANY NEWS: Shares of Dow member UnitedHealth (UNH) are down about 1% as the company holds its annual investor conference. In conjunction with the event, UnitedHealth guided to FY19 adjusted EPS "approaching $15.00," which is at the upper end of its latest forecast of $14.90-$15.00. It also guided to FY20 adjusted EPS $16.25-$16.55, compared to consensus of $16.46 per share.
In M&A news, Astellas Pharma (ALPMY) announced an agreement to acquire Audentes Therapeutics (BOLD) at a price of $60.00 per share in cash, representing a total equity value of approximately $3B. The offer price represents a premium of 110% to Audentes' closing share price of $28.61 on December 2.
Also, Cleveland-Cliffs (CLF) announced an agreement to acquire all of the issued and outstanding shares of AK Steel (AKS) in an all-stock merger transaction. Upon completion of the transaction, Cliffs shareholders will own approximately 68% and AK Steel shareholders will own approximately 32% of the combined company, respectively, on a fully diluted basis. Following the news, AK Steel shares are up 5% near midday, while Cliffs shares are down 11.5%.
MAJOR MOVERS: Among the noteworthy gainers was Viewray (VRAY), which surged 35% after disclosing collaboration agreements and investments from Elekta (EKTAY) and Medtronic (MDT). Also higher was Lands' End (LE), which gained 20% after reporting quarterly results.
Among the notable losers was Cara Therapeutics (CARA), which fell 29% after announcing results from its Phase 2 dose-ranging trial of oral Korsuva for the treatment of pruritus in patients with stage III-V chronic kidney disease. Also lower was e.l.f. Beauty (ELF), which slid 7.5% after a 3.4M share block trade priced at $15.90 per share. Additionally, Marathon Partners made public a letter to the company's board recommending the board seek a sale of the company through a strategic alternatives process.
INDEXES: Near midday, the Dow was down 375.16, or 1.35%, to 27,407.88, the Nasdaq was down 87.65, or 1.02%, to 8,480.34, and the S&P 500 was down 31.60, or 1.01%, to 3,082.27.
UnitedHealth
-1.93 (-0.69%)
Boundless Bio
+30.09 (+105.25%)
AKS
+
Cleveland-Cliffs
-0.97 (-11.52%)
ViewRay
+1.2 (+35.29%)
Medtronic
-0.12 (-0.11%)
Land's End
+2.34 (+19.90%)
Cara Therapeutics
-7.42 (-28.65%)
e.l.f. Beauty
-1.09 (-6.67%)