What's moving markets today: June 3, 2019

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12:03 p.m. ET, June 3, 2019

Google falls nearly 6% over worries of a DOJ investigation

From CNN Business' Anneken Tappe

Shares of Google (GOOGL) are down nearly 6%, on Monday, as the Department of Justice is laying the foundation of a possible antitrust probe into the tech giant.

The exact scope of the possible investigation is unclear, but it could related to the company's search business.

Read more about the DOJ probe here.

The stock was down 5.8% in midday trading. That slide is weighing on the Nasdaq Composite and Nasdaq 100, which are 0.5% and 0.8% lower, respectively.

11:15 a.m. ET, June 3, 2019

Only six Dow stocks are in the red right now

From CNN Business' Anneken Tappe

About an hour and a half into the trading day, stocks are mixed.

  • The Dow is up 0.3%
  • The S&P 500 is up 0.2%, having recovering some from Friday's drop
  • But the tech-heavy Nasdaq is down 0.5%

Only six Dow components are in the red. They are Boeing (BA), Microsoft (MSFT), UnitedHealth (UNH), Visa (V), Goldman Sachs (GS) and McDonald's (MCD).

Walgreens Boots Alliance (WBA) is the biggest gainer in the Dow, up 2.4%, followed by Verizon (VZ), up 2%.

11:32 a.m. ET, June 3, 2019

Manufacturing barometer drops to lowest level since October 2016

From CNN Business' Anneken Tappe

The ISM manufacturing index dropped to 52.1 in May, marking its lowest level since October 2016.

The number undercut a consensus estimate of 53, according to Refinitiv.

In April, the index, which is an important data point in assessing the US economy, also underperformed expectations.

In other economic data this morning, construction spending for April was flat, undercutting consensus estimates of a 0.4% increase.

11:23 a.m. ET, June 3, 2019

Bank of America cuts earnings estimates

By CNN Business' Anneken Tappe

The ongoing trade spat between the United States and the nations it buys from and sells to has caused enough damage to slash earnings estimates, according to analysts at Bank of America (BAC).

The bank cut its 2019 estimated earnings per share by 1.2% and its 2020 earnings estimates by 2.2%.

"We estimate a 1% earnings per share hit from increased China tariffs. From tariffs on Mexico, we estimate a 0.6% drag in 2019 and 1.5% in 2020."

On top of that, a stronger US dollar could also weigh on the company's earnings.

"Globalization has benefited S&P 500 margins for decades, and protectionism coupled with rising wages and input costs, pose risks to peak margins," the analysts said.

BofA has lowered its net margin assumption by 10 basis points to 12% this year and by 20 bps to 12.2% in 2020, compared with 12.5% last year.

11:30 a.m. ET, June 3, 2019

AMD shares jump 7% on Samsung deal

From CNN Business' Jordan Valinsky

AMD (AMD) has inked a new deal with Samsung (SSNLF) to use the company's chips in its mobile devices, including smartphones.

The deal sent AMD's stock up nearly 7% in early trading.

AMD said Samsung will pay the chipmaker royalties and licensing fees, but terms of the multiyear partnership weren't disclosed.

The stock is up 60% for the year.

9:38 a.m. ET, June 3, 2019

Stocks open mixed as trade war goes into next round

From CNN Business' Anneken Tappe

Stocks opened mixed at the start of the week and the first trading day of June, as investors digested developments on the trade front that took place last week and over the weekend.

These included China vowing it wouldn’t “back down” from trade pressures, as well as the threat of import tariffs on Mexican goods.

  • The Dow edged higher at the open, up 40 points, or 0.2%.
  • The S&P 500 kicked off little changed in negative territory before turning modestly positive, up 0.2%.
  • The Nasdaq opened little changed.

Last week, the Dow posted its longest weekly losing streak since June 2011. All three stock indexes fell in the month of May but remain higher for the year.

9:09 a.m. ET, June 3, 2019

Chewy sets terms for its upcoming IPO

From CNN Business' Jordan Valinsky

Chewy, the online retailer that sells pet supplies, is ready to do some tricks for investors as it begins its roadshow.

The PetSmart-owned company rolled out details of its IPO, valuing it at $7.6 billion. It's planning to sell 41.6 million shares at a price range between $17 to $19 per share.

Chewy will soon trade on the New York Stock Exchange under the ticker "CHWY." It pulled in $3.5 billion in 2018, around a 65% increase from the year prior.

8:00 a.m. ET, June 3, 2019

Twitter buys startup that identifies fake news in milliseconds

From CNN Business' Paul R. La Monica

Fake news is a huge problem for social media giants. But Twitter (TWTR) is hoping to get a leg up on rivals like Facebook (FB) and Google's (GOOGL) YouTube with a new acquisition.

Twitter announced Monday that it was buying Fabula AI, a London-based startup that uses algorithms and machine learning technology to identify false information. In a blog post about the deal, Twitter did not use the term "fake news." It simply said that Fabula's tech would "improve the health of the conversation," "stop spam" and "help people feel safe."

But make no mistake. This deal is about trying to help Twitter combat the fake news problem. When you search Fabula AI on Google, the first result shows the website with the following SEO title. "FABULA AI - FACT NOT FAKE."

And Fabula announced in February that by focusing on the difference between how fake news and real news spreads, it has been better able to flag erroneous reports. Fabula said it can detect fake news with greater than 93% accuracy within milliseconds of processing an article and as little as 2 hours after it has started to spread.

7:16 a.m. ET, June 3, 2019

Economists' fears of a 2020 recession in the US surge

From CNN Business' Rich Barberi

America's business leaders are growing more worried that the United States will enter a recession by the end of 2020. Their primary fear: protectionist trade policy.

That is the topline finding of a report released Monday by the National Association for Business Economics. The survey, based on responses by 53 economists, is a leading barometer of where the US business community thinks the economy is headed.

"Increased trade protectionism is considered the primary downwide risk to growth by a majority of the respondents," Gregory Daco, chief US economist for Oxford Economics, said in a statement.

The report found what it called a "surge" in recession fears among the economists.

The report comes as the United States ratchets up its trade war with China and has gone after other major trading partners, including Mexico and India.

Read more from the report here.