Stocks began the day in negative territory as investors continue to question whether an impactful trade deal with China can be reached and if a planned summit between the U.S. and North Korea will actually be held. While uncertainty about the U.S. relationship with both Asian nations, as well as other trade concerns with partners around the globe, are being pointed to as a reason for today’s mild weakness, the trading has been very quiet and the averages remain in the same range where they have recently languished. It is uncertain if the release of the Fed minutes later this afternoon will give investors a reason to buy, or sell, with more conviction. ECONOMIC NEWS: In the U.S., April New Home Sales were reported at 662,000 against a consensus of 677,000. In White House news, U.S. president Donald Trump tweeted that the country’s trade deal with China is “moving along nicely,” but may need a different structure. Investors are awaiting the minutes from the latest FOMC meeting, which are scheduled to be released at 2:00 pm ET. COMPANY NEWS: Comcast (CMCSA) shares were 1.7% lower after the media giant said it is “considering,” and in the advanced stages of preparing, a superior cash bid for the businesses that 21st Century Fox (FOXA) agreed to sell to Disney (DIS). Comcast said that any offer for Fox would be all-cash and at a premium to the value of the current all-share offer from Disney. 21st Century Fox class A shares are up 1.3% near noon after the news… On the earnings front, Lowe’s (LOW) shares surged 9.5% after home improvement retailer reported quarterly results and provided guidance for fiscal 2018. Of note, the company sees FY18 same-store sales increasing 3.5% year-over-year… Meanwhile, Target (TGT) shares were about 5.5% lower after the retail giant reported lower-than-expected quarterly earnings, provided guidance for the second quarter, and reaffirmed its guidance for fiscal 2018. Of note, Target chairman and CEO Brian Cornell said he sees “strong” earnings per share growth for the remainder of the year… Additionally, Barclays (BCS) shares fell nearly 2% in New York after the Financial Times reported that the bank was exploring a merger with rivals, including Standard Chartered (SCBFF). Reuters then reported, however, that Barclays is not looking into a potential merger with other banks, according to two sources close to the bank. MAJOR MOVERS: Among the noteworthy gainers was Cara Therapeutics (CARA), which surged 34.1% after it licensed worldwide rights, except in the U.S., Japan and South Korea, to commercialize Korsuva injection for the treatment of chronic kidney disease-associated pruritus in dialysis patients to a joint company of Vifor Pharma Group and Fresenius Medical Care (FMS). Also lower were Tiffany (TIF) and Ralph Lauren (RL), which gained a respective 19.9% and 15.9% after reporting quarterly results. Among the notable losers was Camping World (CWH), which slipped 10.8% after it disclosed that it had changed its registered public accounting firm. Also lower were Red Robin (RRGB) and HP Enterprise (HPE), which fell a respective 18.6% and 9.9% after reporting quarterly results. INDEXES: Near midday, the Dow was down 116.50, or 0.47%, to 24,717.91, the Nasdaq was down 2.91, or 0.04%, to 7,375.55, and the S&P 500 was down 7.50, or 0.28%, to 2,716.94.
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