The Nasdaq slumped 1% in early trade, the S&P 500 gave back 0.5% and the Dow Jones eased 0.2%.
Biotech Alkermes (ALKS) plunged 20% after the Food and Drug administration rejected the company’s application for a depression drug.
Walmart (WMT) underperformed in the Dow. Shares fell 2% on news the retail giant is in talks with health insurer Humana about deepening its existing partnership or possibly a takeover, according to multiple reports. Shares of Humana (HUM) jumped 7%
Meanwhile, China tariffs on about $3 billion of U.S. imports went into effect Monday.
Tesla Stock Hit Again
Tesla stock slumped nearly 7% in early trading, hurt by news late Thursday the company is recalling more than 100,000 Model S sedans for a power steering problem. Separately, Tesla confirmed Friday that Autopilot was engaged during a recent Model X crash in California that killed the driver.
Tesla is expected to report Q1 production and delivery figures for the Model 3, Model S and Model X sometime this week. Last week, Moody’s downgraded Tesla over its heavy cash burn and Model 3 production woes.
Trump Goes After Amazon Again
Meanwhile, President Trump’s Twitter attack on Amazon.com (AMZN) continued Saturday when he tweeted the U.S. Post Office loses on average $1.50 for each package it delivers for the online retailer. Shares of Amazon fell 4% in early trading.
It’s a busy week of economic data with the ISM manufacturing index due today at 10 a.m. ET. Factory orders and the ADP employment report will be out Wednesday, and the March jobs report will be released Friday. Economists expect nonfarm payrolls to increase by 167,000, down from 313,000 in February, with the unemployment rate ticking lower to 4%.
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