What's moving markets today: June 3, 2019

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

Twitter buys startup that identifies fake news in milliseconds

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

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.

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

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

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

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

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


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.