U.S. stocks, in what was a volatile session, fell sharply on Monday with losses steepening in the final hour of trading.
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President Trump, upon landing in Arizona, blamed House Speaker Nancy Pelosi for not wanting to do a stimulus bill, despite her outward efforts to reach a deal by Tuesday. She is expected to speak with Treasury Secretary Mnuchin today.
The Dow Jones Industrial Average fell over 400 points or 1.5%, while the tech-heavy NASDAQ Composite and S&P 500 also dropped by 1.6% each.
|I:DJI||DOW JONES AVERAGES||29910.37||+37.90||+0.13%|
|I:COMP||NASDAQ COMPOSITE INDEX||12205.846315||+111.44||+0.92%|
Consumer discretionary stocks, which would benefit from a stimulus bill including Walmart and Amazon, dipped.
In deal-making, Conoco Phillips is buying Concho Resources for $9.7 billion as consolidation continues in the U.S. energy sector. The deal makes the new company the "largest independent oil and gas company with pro forma production of over 1.5 million barrels of oil equivalent per day" according to the companies.
|CXO||CONCHO RESOURCES INC.||62.02||-1.35||-2.13%|
ECONOMICS IN SPOTLIGHT
In global economics, China said its economy expanded at a 4.9% rate in the July-to-September period, according to official data released from the Chinese government. Analysts surveyed by Refinitiv had expected an expansion rate of 5.2%.
In a panel being held by the International Monetary Fund, Federal Reserve Chairman Jerome Powell said the Fed is evaluating the benefits of a digital currency.
Federal Reserve Vice Chairman Richard Clarida said that additional fiscal and monetary support would be needed to aid the struggling U.S. economy, noting it could take another year before the economy returns to pre-pandemic levels.
European Central Bank President Christine Lagarde urged the European Union to consider the $878 billion recovery fund as a permanent tool.
HOUSING MARKET HOT
The U.S. housing market, which continues to be buoyed by record-low interest rates, remains red hot.
The NAHB Housing Market Index for October hit a fresh record high with a reading of 85, above analysts' estimates of 83.
EARNINGS BACK IN FOCUS
Earnings are back in focus, as oil-services company Halliburton Company reported another quarterly loss but CEO Jeff Miller signaled the industry is stabilizing.
|IBM||INTERNATIONAL BUSINESS MACHINES CORP.||124.35||+0.15||+0.12%|
After the close, traders will look at results from IBM, which recently announced plans to spin-off its infrastructure services unit into a new publicly-traded company.
Microsoft Corp., which competes with IBM in the cloud computing space, is in focus after Jefferies raised its price target on the tech giant to $260 a share, the highest on Wall Street.
Tesla Inc. said on Monday it would start to export Model 3 cars that are made in China to a number of different European countries.
West Texas Intermediate crude oil closed slightly lower at $40.83 a barrel, while gold climbed to $1,906.40 an ounce.