What's moving markets today: May 9, 2019

By CNN Business

Updated 11:55 p.m. ET, May 9, 2019
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12:42 p.m. ET, May 9, 2019

Scaramucci 'not in love' with Trump's Fed attacks

From CNN Business' Nathaniel Meyersohn

President Donald Trump has frequently criticized Federal Reserve Chairman Jay Powell. Anthony Scaramucci, the former White House communications director, says that's a mistake.

"I’m not in love with the public rebuke of the Federal Reserve chairman, where we’ve had 106 years of relative Fed independence," Scaramucci said on a panel today with former Obama White House advisor Valerie Jarrett at the SALT Conference in Las Vegas.

The one piece of advice Scaramucci would give Trump right now? "Same policies. Less crazy."

12:21 p.m. ET, May 9, 2019

Stocks remain weak at midday

From CNN Business' Anneken Tappe

At the half-way point of the trading day, we're still in the midst of a fear-driven sell-off.

The Dow is down 1.4%, or 354 points, having bounced back from a more than 400 point drop earlier. The S&P 500 and the Nasdaq are 1.1% and 1.2% lower, respectively. They are on track for their fourth down day.

Chevron (CVX) remains the only Dow stock in the green, up 2.3%.

The weakest constituents, all with a lot of exposure to China, are Intel (INTC), Boeing (BA) and Apple (AAPL).

All S&P sectors are in the red as well, as even the previously defensive utilities have given up earlier gains.

11:47 a.m. ET, May 9, 2019

Soybean futures get slammed

From CNN Business' Anneken Tappe

Soybean futures are getting clobbered again as investors fret about trade.

Soybeans are the United States' single biggest export to China, so prolonged negotiations and additional tariffs will hit the commodity hard.

Soybean futures for July, the most active contract, were down 2.4% at $8.08 a bushel, while futures for May dropped 2.2% to $7.96, according to Refinitiv. Its putting the two closest contracts on track to log their worst one-day drop since October.

11:12 a.m. ET, May 9, 2019

Industrials and technology stocks drag market lower

From CNN Business' Anneken Tappe

About an hour into trading, stocks are solidly in the red.

Industrial and technology stocks are the biggest drag on the Dow.

Chevron (CVX) and Pfizer (PFE) are the only Dow components that are trading in the green. Chevron is up 2.1% after officially walking away from the bidding war surrounding Anadarko Petroleum (APC), for which it pocketed a $1 billion break-up fee.

Intel (INTC), Boeing (BA) and Caterpillar (CAT) are leading Dow decliners.

In the S&P 500, utilities are holding up better than other sectors. In individual stocks, Tapestry (TPR) is up 10.5% after reporting earnings before the bell.

10:44 a.m. ET, May 9, 2019

Dow falls 400 points

The Dow has fallen 400 points as fear about disruption to a trade deal between the United States and China intensifies.

12:57 p.m. ET, May 9, 2019

Fitch warns trade war could be prolonged headwind to US companies

From CNN Business' Anneken Tappe

As trade tensions between the United States and China drag on, the headwinds posed by additional tariffs, retaliation and ongoing negotiations will continue to challenge American companies, said ratings agency Fitch.

The state of the US-China trading relationship is an important issue for US corporations, due to the size of the Chinese market, intricate global supply chains and the potential knock-on effects on the global economy," said Fitch.

Tech and industrial companies are most vulnerable to retaliatory action, as they depend on China as an end-market. Fitch noted that Boeing (BA), Intel (INTC) and Texas Instruments (TXN) make more than 20% of their revenues in China.

9:37 a.m. ET, May 9, 2019

Stocks open lower

From CNN Business' Anneken Tappe

US stocks started the day in the red amid continuing fears about US-China trade relations. While negotiations between the two are still ongoing, the rhetoric from both sides this week has thrown financial markets off the assumption that a trade deal was as good as done.

  • The Dow opened 0.9%, or 225 points, lower
  • The S&P 500 opened down 0.9%
  • The Nasdaq opened 1.1% lower

Chevron (CVX) shares were up 3% after the company officially walked away from the bidding war for Anadarko Petroleum (APC), pocketing a $1 billion break-up fee on the way out. Anadarko's shares were down 2.6%, while its prospective new owner Occidental Petroleum (OXY) fell 5.4%.

Shares of Intel (INTC) were down 2%. Yesterday, the company's CEO said he only expected single-digit growth over the next three years.

9:13 a.m. ET, May 9, 2019

Dow futures point to lower open as trade jitters continue

From CNN Business' Anneken Tappe

Dow futures are once again pointing to a lower open, with the latest developments in the US-China trade spat weighing on global markets.

Stock futures for the DowS&P 500 and Nasdaq are all more than 0.5% lower. On Wednesday, stocks staged a recovery from the fear-inspired selloff and the Dow finished in the green, albeit just barely. On Tuesday, US stocks recorded their worst one-day drop since January.

It's crunch time on the trade front with additional US tariffs on Chinese goods due to take effect after midnight on Friday.

During a rally in Florida late Wednesday, President Donald Trump said he decided to raise tariffs on some $200 billion worth of imports from China because Beijing "broke the deal." He threatened to up existing tariffs from 10% to 25% in a tweet on Sunday.

Read the full story on this week's market turmoil here.

9:15 a.m. ET, May 9, 2019

Oil merger saga comes to an end

From CNN Business' Charles Riley

Chevron (CVX) has conceded defeat in the battle for Anadarko Petroleum (APC).

The oil major said in a statement Thursday that it would not increase its offer for Anadarko, which puts rival Occidental Petroleum (OXY) in position to gain control of prized shale assets.

Winning in any environment doesn't mean winning at any cost," Chevron CEO Michael Wirth said in a statement. "We will not dilute our returns or erode value for our shareholders for the sake of doing a deal."

Here's where the stocks stand in premarket trading:

  • Chevron's stock is up more than 3%
  • Andarko shares are down 3%
  • Occidental's stock slid 5%

Read more about the deal here.