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IBM chief on Red Hat deal: A hybrid cloud solution

Ginni Rometty, CEO of IBM, says the Red Hat deal will give clients a "safe, secure journey" with "all the benefits of the cloud."

Posted: Oct 30, 2018 12:02 PM
Updated: Oct 30, 2018 12:12 PM

Glee about a big tech merger sent stocks soaring Monday, but then dread about the threat of new tariffs on China sent them plunging. The Dow swung more than 900 points from its highs of the day to its lows and finished with a more than 245-point loss.

Stocks turned lower in the afternoon after Bloomberg reported that the White House is considering more tariffs on Chinese goods by December if the next round of negotiations between President Donald Trump and Chinese leader Xi Jinping do not go well.

"We'll see what happens," said White House Press Secretary Sarah Sanders on Monday about the meeting. "We're not going to get ahead of those conversations."

The S&P 500 fell 0.7% and the Nasdaq dropped 1.6%. The Dow, which had been up more than 350 points earlier Monday morning, is now more than 9% below its all time highs. Both the Dow and S&P 500 gave up their gains for the year as well.

The Dow was dragged lower in particular by Boeing (BA), which has significant exposure to China and also has the highest stock price in the Dow. Shares fell 6.6%. (The Dow is weighted by stock price, not market value like most other indexes.)

IBM's big acquisition of cloud computing software company Red Hat for $34 billion led to a short rally earlier Monday for tech stocks that quickly fizzled.

IBM (IBM) sank more than 4% to a new multi-year low. Other tech stocks struggled too. In addition to IBM, Big Blue rival Microsoft (MSFT) fell about 3%. Shares of Dow components Apple (AAPL), Intel (INTC) and Cisco (CSCO) all finished the day lower, too.

And the damage was even more brutal for members of the so-called FANG club of momentum tech stocks.

Shares of Facebook, which will report its earnings after the closing bell Tuesday, fell 2%. Amazon shares were down 6%, Netflix's stock fell 5% and Google owner Alphabet (GOOGL) dropped 4.5%.

Concerns that Big Blue may be paying too much for Red Hat (RHT), which soared 45%, may have hurt tech and the broader market. The IBM deal was also the main bit of news since there were no significant earnings or economic reports of note Monday.

Monday's roller coaster moves are discouraging, especially after last week's extreme volatility, when stocks fell for a variety of reasons.

Disappointing earnings and guidance from industrial bellwethers 3M (MMM) and Caterpillar (CAT) played a part, as did worries that tech giants like Netflix (NFLX) and Amazon (AMZN) were starting to look overvalued.

Weak housing market data hurt big bank stocks as well.

To top it all off, investors remain nervous about the trade tension with China, a stronger dollar eating into profits, and rising interest rates from the Federal Reserve.

But earnings take center stage later this week. Apple, Facebook (FB), General Electric (GE), General Motors (GM), Coca-Cola (KO), Starbucks (SBUX), Kraft Heinz (KHC), Chevron (CVX) and Exxon Mobil (XOM) are among the notable firms to report results.

Wall Street will also be watching Friday's jobs report very closely for signs of stronger wage growth and a possible uptick in inflation.

Indiana Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 35712

Reported Deaths: 2207
CountyConfirmedDeaths
Marion10037594
Lake3806202
Allen174371
Cass15927
Elkhart143529
St. Joseph132035
Hamilton118094
Hendricks118074
Johnson1120110
Madison59761
Porter55329
Clark52841
Bartholomew52238
Howard43734
LaPorte43624
Tippecanoe4214
Shelby39822
Jackson3942
Delaware38740
Hancock34928
Floyd32140
Boone31835
Vanderburgh2902
Morgan28324
Noble25121
Montgomery24417
Clinton2401
White2389
Decatur23031
Grant22123
Dubois2053
Harrison19622
Henry18412
Vigo1758
Greene17125
Dearborn17021
Monroe17012
Warrick16728
Kosciusko1661
Lawrence16524
Marshall1472
Miami1411
Putnam1377
Orange13122
Jennings1314
Scott1223
Franklin1158
Ripley1086
LaGrange1022
Daviess9516
Carroll933
Steuben872
Wayne865
Wabash802
Fayette797
Newton7810
Jasper701
Jay530
Clay522
Washington511
Rush503
Randolph503
Fulton501
Pulaski490
Jefferson471
Whitley443
DeKalb431
Starke393
Sullivan371
Owen341
Perry340
Huntington342
Brown331
Benton320
Wells320
Knox310
Blackford272
Tipton261
Crawford240
Fountain222
Switzerland210
Spencer211
Adams201
Gibson182
Parke180
Posey160
Ohio130
Warren121
Martin120
Vermillion100
Union90
Pike60
Unassigned0175

Ohio Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 36792

Reported Deaths: 2300
CountyConfirmedDeaths
Franklin6112290
Cuyahoga4669247
Hamilton2739164
Marion267931
Lucas2296256
Pickaway209537
Summit1487181
Mahoning1463188
Butler93333
Columbiana88952
Stark75299
Lorain70960
Montgomery69516
Trumbull58451
Belmont43914
Warren39021
Medina36623
Miami36230
Tuscarawas3604
Ashtabula34537
Delaware34414
Portage33257
Lake31812
Fairfield3108
Clark3067
Wood30348
Geauga29533
Wayne28851
Licking26510
Mercer2207
Clermont2165
Allen21433
Richland2093
Darke18423
Erie18216
Madison1627
Washington11819
Crawford1174
Morrow1071
Ottawa10217
Greene1025
Putnam9514
Sandusky8512
Monroe7914
Auglaize763
Ross732
Hocking705
Jefferson672
Hardin640
Huron601
Williams561
Union551
Muskingum521
Hancock511
Shelby463
Holmes463
Clinton451
Fulton450
Wyandot442
Coshocton400
Logan400
Fayette400
Preble391
Guernsey362
Defiance342
Carroll313
Brown301
Lawrence300
Champaign281
Highland261
Knox251
Seneca242
Vinton212
Ashland210
Perry191
Athens181
Henry170
Scioto170
Paulding140
Jackson140
Adams101
Harrison100
Pike90
Gallia81
Van Wert70
Noble60
Meigs60
Morgan50
Unassigned00
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