What's moving markets today: June 3, 2019

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7:34 a.m. ET, June 3, 2019

Christine Romans: White House is making the case that rules of economics don't apply to Trump

From CNN Business' Christine Romans

Investors start the week with a sour mood. Trade tensions are again the chief reason. But what is new about the trade tumult, you ask? Sharp comments over the weekend from China

And there is also a growing realization that the Trump Administration is comfortable waging trade wars on multiple front including China, Mexico, India. The White House even considered raising tariffs on aluminum from ally Australia, according to the New York Times,

The administration is trying to make the case that the rules of economics don't apply in the Trump economy. Acting Chief of Staff Mick Mulvaney told Fox News that contrary to almost every serious analysis, consumers will not feel tariffs, as seen in the clip below:

For major stock averages, June is beginning the same way May ended. For the month, the Dow fell 6.1%, the S&P 500 lost 5.8% and the Nasdaq fell 7.4%.

It was the worst May for the Nasdaq since 2010 and the Dow's weekly losing streak — six down weeks in a row — is the longest since June 2011.

9:32 a.m. ET, June 3, 2019

Google shares slip after reported antitrust probe

From CNN Business' Brian Fung and Jordan Valinsky

The US Justice Department is laying the foundation for a potential antitrust investigation of Google, sending shares down 4% in early trading.

Three people familiar with the matter tell CNN Business that the government agency is zeroing in on the company as policymakers around the globe are calling for tougher regulation of an increasingly embattled industry.

Negotiations between DOJ and the Federal Trade Commission in recent weeks have resulted in the Justice Department gaining control over a possible investigation of the tech giant.

Google (GOOGL), which has said healthy and thriving markets are in everyone's interest, declined to comment on the potential probe. The Justice Department and FTC also declined comment.

Read more here.

6:33 a.m. ET, June 3, 2019

China is investigating FedEx after it diverted packages to the US

From CNN Business' David Goldman

The Chinese government is investigating FedEx after Huawei said the delivery company diverted to the United States two packages intended for the company's offices in China.

Already on edge about Huawei and relations with the United States, Chinese government authorities issued a strong statement: FedEx's action has "seriously harmed the legitimate rights and interests of its client, and violated Chinese laws and regulations on the express delivery sector."

FedEx (FDX) slid 3% in premarket trading.

Read more here.

6:17 a.m. ET, June 3, 2019

Boeing shares slide after it said some of its 737 Max planes might have defective parts

From CNN Business' David Goldman

Boeing (BA) said some of its 737 planes, including many 737 Max aircraft, may have faulty parts on their wings. It's the latest problem Boeing faces as it tries to get its most important and popular airplane, the grounded 737 Max, back in the air.

Working with the Federal Aviation Administration, Boeing said it has reached out to airlines that fly 737 planes, advising them to inspect their slat track assemblies on Max and NG aircraft. The 737 NG series includes the 737-600, -700, -800 and -900 planes.

Shares fell 1.3% in premarket trading.

6:26 a.m. ET, June 3, 2019

Say hello the latest multibillion-dollar chip deal

From CNN Business' Julia Horowitz

 OLIVER LANG/AFP/Getty Images
 OLIVER LANG/AFP/Getty Images

Germany's Infineon Technologies said it's buying US chipmaker Cypress in a deal that values the company at $10 billion.

The tie-up could help Infineon become a bigger player in chips used to power connected devices such as cars. But the price of the merger is raising eyebrows. 

  • Infineon (IFNNF) shares fell more than 6% in early trading.
  • Cypress (CY) soared 24% in early trading.
6:14 a.m. ET, June 3, 2019

Apple's developer conference begins Monday

From CNN Business' Julia Horowitz

Apple's annual developers conference, known as WWDC, kicks off Monday afternoon in California.

Apple (AAPL) is expected to preview new software features coming to iPhones, iPads, Macs and the Apple Watch. That could include improved health tracking tools and a dark mode on iOS devices.

Here's what else Apple fans can expect.

6:17 a.m. ET, June 3, 2019

Checking in on global markets

From CNN Business' Julia Horowitz

The trade war between the US and China is heating up just as President Trump threatens new tariffs on goods from Mexico and also takes aim at India.

For markets, that's a tough pill to swallow.

  • US stock futures point to a difficult start to the week after the Dow finished below 25,000 for the first time in four months on Friday. Dow futures were down 120 points today, or 0.5%. The S&P 500 is poised to drop 0.4%, while the Nasdaq could shed 0.5%.
  • US stock declines would follow losses in Asia. Hong Kong's Hang Seng index finished flat on Monday, but the Shanghai Composite index dipped 0.3%. Tokyo's Nikkei lost 0.9%.
  • European markets also opened down. Britain's FTSE 100 was off 0.9% and Germany's DAX dropped 0.5%.

Investors continue to flee to the safety of US government debt, driving the 10-year Treasury yield down to 2.09%, the lowest level in nearly two years.