The tech-focused Nasdaq Composite closed 1.6% lower on Monday — now 10% from the index's record high — as reports about heightened antitrust scrutiny for Apple, Facebook, Amazon and Alphabet hit those companies' share prices.
Growth investors have been winning the battle over value investors for some time, but a new report from Bank of America-Merrill Lynch shows that evaluating a company's price-earnings ratio may be losing its value altogether.
The big picture: "Low P/E remains the most popular factor for the 14th year running despite its weak performance for most of this bull market (the factor lagged by 46ppt since 2010)," Bank of America Merrill Lynch's equity and quantitative strategist Savita Subramanian said in a note to clients.
Leveraged buyout experts Apollo Global Management made the latest move into the red-hot global watch market, taking its Watches of Switzerland brand — an official Rolex retailer that also sells luxury imprints Patek Philippe, Cartier and Longines — public.
Why it matters: Watches of Switzerland's successful IPO shows the skyrocketing popularity of luxury watches is not lost on financial markets. The stock debuted Thursday on the London Stock Exchange at an IPO price of 270 pence (about $3.41) and rose as much as 17%.
The evening news broadcasts for both ABC and NBC will take their broadcasts to Normandy this week as David Muir and Lester Holt anchor special editions for the 75th anniversary of D-Day.
Details: Muir will also head "Return to Normandy," a weeklong series airing on both "World News Tonight" and "Nightline," as he accompanies "a half dozen World War II veterans from all over the country" who are heading back to France to mark the occasion.
President Trump said that if Americans stopped "using or subscribing" to AT&T that "big changes" might occur at CNN, which is owned by the telecommunications giant, in a Monday tweet.
The big picture: The AT&T-Time Warner merger — approved earlier this year after a Justice Department attempt to block it — spurred a great deal of antitrust rhetoric from both the Trump administration and the president himself. Trump's tweet came as he complained that he was forced to watch CNN as "the primary source of news available from the U.S." while in London for a state visit.
Democratic presidential candidate Rep. Tim Ryan (D-Ohio) told a CNN town hall Sunday "our farmers are getting hammered" because of President Trump's tariffs on China.
"Trump does not have a big strategy. He has a tactic that gets him on TV because he sends a tweet out — tariffs are on, tariffs are off — and the media runs with it all the time and it changes the subject and he can look tough. We're getting our clock cleaned."
Abercrombie & Fitch stock plunged 25% on Wednesday. JCPenney stock is trading at $0.80 per share, down from a high of $80 in early 2007. And Dressbarn is closing down entirely.
What to watch: Now comes the trade war. Hallmark doesn't expect to be able to exempt greeting cards from the next tranche of Chinese tariffs, according to an internal memo seen by Axios' Dan Primack.
"Don't say we didn't warn you." With these words, China has signaled that its next step in the trade war might be to cut off America's access to rare earth minerals — a key component in everything from cellphones to missile systems.
The impact: China exports about 80% of the rare earths imported by the U.S., and a boycott could cripple much of American high-tech manufacturing.
If Trump's 5% tariff on Mexican goods takes effect later this month, the president's trade policies would constitute a bigger tax hike than Bill Clinton’s in 1993.
By the numbers: Tariffs already in place against Mexico will increase revenues by $69 billion, the Tax Foundation estimates — or about 0.32% of GDP. Add in the threatened 5% tax on Mexican imports, and that rises to about 0.40% of GDP.
The U.S. is in the middle of a full-blown trade war with China, our largest source of imports. There's broad bipartisan consensus that even if the Trump administration's tactics are misguided, China achieved its dominant trade position unscrupulously, being selective as to which international trade norms it would accept.
GoPro will move some production from China to Mexico to avoid Trump tariffs.
— Silicon Valley Business Journal headline, May 14
Republican lawmakers are voicing their concerns and grievances following President Trump's Thursday announcement of new tariffs against Mexican goods.
Why it matters: While Republicans still argue that border security and immigration are top policy issues, some are worried Trump's sanctions could jeopardize plans to pass the United States-Mexico-Canada Agreement (USMCA).
White House chief of staff Mick Mulvaney said on "Fox News Sunday" that President Trump is "deadly serious" about his threat to impose a 5% tariff on all Mexican goods crossing the border until the "illegal immigration problem is remedied," adding that he believes "American consumers will not pay for the burden of these tariffs."
