U.S. stock indexes opened lower Monday and then widened the losses sharply near midday. Dow Jones stocks were unable to follow up on their leadership Friday. Meanwhile, President Trump's trade war with China spread further.
XThe Nasdaq dropped 2.2%, while the S&P 500 and the Dow Jones industrial average each fell 1.3%. Small caps also struggled as the Russell 2000 carved off 1.1%.
Volume faded on both major exchanges, as the stock market headed toward Thursday's Thanksgiving holiday. Big price moves in lower volume have been common recently.
China Gets Rough
China cranked up the trade war with actions that market watchers weren't taking at face value. The Financial Times reported that China accused Micron Technology (MU) and Apple suppliers South Korean Samsung Electronics and SK Hynix of monopoly practices. But some analysts regard China's action against Micron as a negotiating chip.
About two weeks ago, Bloomberg News reported that the U.S. Justice Department accused Fujian Jinhua Integrated Circuit — a state-owned company in China — of conspiring to steal secrets from Boise, Idaho-based Micron.
Trump has made intellectual property theft a central issue in his standoff with China.
Micron fell 3.5% in below-average volume in late morning trade.
Dow Jones In Red
Blue chips were mostly lower. In the Dow Jones industrial average, losers led winners by a 3-to-2 ratio. Big losers included Boeing (BA), down 3%; Apple (AAPL), off 3.5%; and Caterpillar (CAT), down 1.7%. Stocks posting gains included Verizon (VZ), up 1%, and Johnson & Johnson (JNJ), up 0.7%.
In the growth camp, the Innovator IBD 50 ETF (FFTY) sagged 3% and the Innovator IBD Breakout Opportunities ETF (BOUT) slipped 0.8%.
Breakouts were sparse Monday but still included a handful of stocks. Outdoor products maker Yeti (YETI) jumped 5% as it cleared a short IPO base. Software stock Micro Focus (MFGP) rose 0.4% as it tried to hold above a buy point. Waste Management (WM), One Gas (OGS) and Oracle (ORCL) also were trying to make their breakouts stick.
Tesla (TSLA), meanwhile, cleared a cup-with-handle base with a 357.68 buy point. Volume was only slightly above average.
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