The markets were lower to start the week following news of many of the chip makers as well as Google which began to confirm that they would not be working with Chinese phone giant Huawei.
The Dow 30 sold off 84 thanks in part to Intel. The S&P 500 sold off 19 and the tech heavy Nasdaq closed the day lower by 113. Tomorrow, investors will digest a slew of retail earnings both before and after market hours.
Sector News
Oil was higher overnight as well as today as Saudi Arabia says they are likely to continue with more cuts in production. In addition to that, President Trump warned Iran that they could face their "end" if they threaten the U.S. again. This comes after a rocket landed just shy of the U.S. Embassy in Baghdad. Both Saudi Arabia and the U.S. now have made clear that avoiding war is up to Iran.
Semiconductors sold off sharply today as investors responded to news that many chipmakers are ceasing business with Huawei. Qualcomm (QCOM ), Broadcomm (AVGO ) and Intel (INTC ) are among those that have confirmed they will not do business with the firm. According to Evercore, Huawei buys approximately $20 billion in chips each year.
Stock News
Tesla (TSLA ) shares sold off again today, breaking below the $200 area early in the morning. The company sold off on analyst comments from Wedbush which raised concerns about profitability in the second half of this year. The analyst cited an "uphill battle" wich caused them to lower their forecast for the stock from $275 to $230.
Lyft (LYFT ) shares were in the news again today as the company is being sued by a group of investors claiming that the company made "false and misleading" statements which helped support an "inflated" share price. Shares of Lyft remain near lows, losing about 30% from it's opening price.
T-Mobile (TMUS ) and Sprint (S ) shares were both higher today as they got the backing of the FCC Chairman for their merger. The company announced the concessions they were willing to make to appease the Justice Department which may just be enough to win approval. Later in the day shares of Sprint were halted on news that the Justice department may not approve the deal.
