Tech Sell-Off Pushes Nasdaq to its Lowest Close
The Nasdaq Composite Index closed to its lowest level since July 5 on Monday. Its drop was attributed to the steady retreat of the popular technology stocks where they closed in the red for a third straight session. The tech-heavy index lost 107.41 points (-1.39%) to finish the session at 7,630.
The Dow Jones Industrial Average shed 144.23 points (-0.57%) as American Express Co. (AXP) dropped -2.89% to lead decliners among the blue-chip benchmark’s 30 components. The S&P 500 Index retreated 22 points (- 0.58%) with the tech sector falling -1.8%.
The historic fall of Facebook Inc. (FB) due to disappointing numbers last week was carried over at the start of this week. The shares of the social-media giant posted a peak last July 25 only to lose more than 20%. FB fell -2.19% to $171.06 that analysts are now saying the stock has officially entered bear territory.
Investors Hope Apple’s Earnings Can Renew Optimism
As the tech bloodbath continues, Apple Inc. (AAPL) is due to report quarterly earnings late Tuesday. Investors’ are hoping the tech giant can renew optimism with strong earnings. Wall Street has momentarily shaken off worries about trade disputes between the U.S. and its global partners to focus on the earnings season.
The Nasdaq has had three consecutive declines of 1% or more in nearly three years. The other so-called FAANG stocks to where Apple belongs – Facebook Inc. (FB), Amazon.com Inc. (AMZN), Netflix Inc. (NFLX) and Alphabet Inc. (GOOGL) — all ended in the red on Monday.
T-Mobile US and Nokia Seals First Big 5G Deal
A new wireless upgrade cycle is taking root after the world’s largest 5G deal has been sealed. T-Mobile US (TMUS) has chosen Nokia as its supplier of the next-generation 5G network gear. The two firms jointly announced the $3.5 billion deal on Monday.
As far back as April, T-Mobile has agreed to merger with Sprint Corp. (S) in order to form a worthy opponent to U.S. telecom giants like AT&T Inc. (T) and Verizon Communications Inc. (VZ). With the multiyear supply deal with Nokia, the No.3 U.S. mobile carrier will be able to deliver the first nationwide 5G services.
Tesla Eyeing to Build First Gigafactory in Europe
Although it is still in the early stages, Tesla Inc. (TSLA) is holding talks with German authorities and those from Netherlands to build its first major factory in Europe. The Wall Street Journal cited officials involved in the matter when they reported the ongoing talks on Monday.
America’s electric vehicle maker had preliminary discussions with two German states that are interested to host Tesla’s Gigafactory in Europe. They want a factory that can build cars and batteries under one roof.
Last June, Tesla Chief Executive Officer Elon Musk already intimated his preference for Germany as the location for its first factory in Europe.
Dunkin’ Introduces Gluten-Free Fudge Brownie
Dunkin’ Donuts first-ever gluten-free bakery product hit the stores on Monday. The company introduced and made available the gluten-free fudge brownie in all of Dunkin’s 8,500 U.S. stores.
Since 2015, the popularity of gluten-free food has been soaring. The company issued a statement saying it recognizes “the importance of providing alternative choices for people with dietary restrictions or who choose a gluten-free diet.”
The fudge brownie is the only gluten-free product among several new items on Dunkin’s menu. Some of the new items are the waffle-breaded chicken tenders, pretzel bites and ham and cheese roll-ups. All these food items are part of the chain’s new Dunkin’ Run menu at a price of $2 each.