U.S. stocks closed sharply lower on Monday, as an early lift from a strong retail sales report succumbed to a jump in Treasury yields and concerns about rising geopolitical tensions between Iran and Israel.
Market Snapshot
The Dow Jones Industrial Average fell 248.13 points, or 0.65%, to 37,735.11, the S&P 500 lost 61.59 points, or 1.20%, to 5,061.82 and the Nasdaq Composite lost 290.07 points, or 1.79%, to 15,885.02.
Market Movers
Trump Media & Technology Group fell 18% to $26.61 after the parent company of the Truth Social website filed to issue more stock following the issue of warrants. The company filed to issue up to 21.5 million new common shares and for the sale of up to 146.1 million shares by selling stockholders.
Tesla fell 5.6% after the electric-vehicle company planned to lay off more than 10% of its global workforce, according to a company update sent by CEO Elon Musk. “There is nothing I hate more, but it must be done,” wrote Musk, according to multiple reports. “This will enable us to be lean, innovative, and hungry for the next growth phase cycle.” Tesla shares have declined 34% this year.
Goldman Sachs reported first-quarter earnings of $11.58 a share, topping analysts’ estimates of $8.73 a share, and revenue of $14.21 billion beat forecasts of $12.9 billion. Investment-banking revenue rose 32% to $2.09 billion from $1.58 billion a year earlier. The stock rose 2.9%.
Salesforce is in advanced talks to acquire data-management software provider Informatica, The Wall Street Journal reported, citing people familiar with the matter. Informatica has a market capitalization of more than $11 billion. According to the Journal, the price being discussed is below Informatica’s closing stock price on Friday of $38.48 a share following a recent jump in the shares. Informatica was falling 10% to $34.59 while Salesforce fell 7.3%.
Apple declined 2.2% after it was supplanted by Samsung Electronics as the top smartphone provider in the first quarter, according to preliminary data from research firm International Data Corp. Apple shipped 50.1 million smartphones in the first quarter, down 9.6% from a year earlier. Samsung’s shipments fell 0.7% to 60.1 million units, making it the No. 1 seller of smartphones worldwide.
Charles Schwab reported first-quarter adjusted earnings of 74 cents a share, beating estimates of 73 cents a share. Revenue of $4.7 billion met analysts’ expectations. Schwab’s total client assets hit a record $9.1 trillion, up 20% from the same period a year ago. The stock was up 1.7%.
M&T Bank rose 4.7% and the stock was the best performer in the S&P 500 on Monday. Quarterly earnings slumped on exposure to the commercial real estate sector but the regional lender said it intends to pull back from that business.
Reports are expected later in the week from Bank of America, UnitedHealth, Johnson & Johnson, Morgan Stanley, PNC Financial, Bank Of New York Mellon, United Airlines, ASML Holding, Abbott Laboratories, Taiwan Semiconductor Manufacturing, Netflix, Intuitive Surgical, Blackstone, D.R. Horton, Procter & Gamble, American Express, and Schlumberger.
Medical Properties Trust, the nation’s largest hospital landlord, rose 19% after announcing late Friday the sale of its interests in five Utah hospitals to a new joint venture for $886 million.
Logitech, the maker of computer peripherals such as headphones, mice, and webcams, fell 6.4% after Morgan Stanley analyst Erik Woodring downgraded the stock to Underweight from Equal Weight, saying he expects revenue growth below company expectations.
Market News
Tesla Executive Baglino Leaves as Musk Loses Another Top Deputy
Two of Tesla Inc.’s top executives have left in the midst of the carmaker’s largest-ever round of job cuts, as slowing electric-vehicle demand leads the company to reduce its global headcount by more than 10%.
The cuts could reach closer to 20% in some divisions, two people familiar with the matter say.
JPMorgan CEO Dimon sells about $33 mln shares, completes planned sale
JPMorgan Chase CEO Jamie Dimon has sold about $33 million of his shares in the bank, a regulatory filing showed on Monday, completing a previously disclosed plan to sell 1 million shares.
Last October, JPMorgan had said Dimon and his family intended to sell 1 million of their 8.6 million shares, the first time Dimon was selling shares since becoming the CEO of the largest U.S. lender in 2005.
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