US open: Losses at the bell following news of Apple's planned production cuts
Trading on Wall Street kicked-off with across-the-board losses on Monday as news of Apple's production cuts hit both the Dow Industrials and the tech-heavy Nasdaq, even as investors continued to eye Sino-US trade relations.
At 1525 GMT, the Dow Jones Industrial Average was down 0.55% to 25,273.88, while the S&P 500 had lost 0.48% to trade at 2,723.01 and the Nasdaq Composite was trading 1.25% weaker at 7,157.41.
Relations between the US and China were in focus again as Donald Trump said on Friday that he may not impose further tariffs on Chinese goods. However, over the weekend, US Vice President Mike Pence said at the Asia Pacific summit that there would be no end to US levies on $250bn of Chinese goods unless China changes its ways.
Joshua Mahony, market analyst at IG, said US-China relations "remain just as icy as ever, despite recent hopes of an impending trade deal between the two sides".
"Unfortunately, there are precious few signs of a shift in tone from either sides, and with issues such as IP theft remaining a topic that seems to have no solution (due to Chinese rejection that it occurs), some issues seem destined to remain a roadblock to future progress," he said.
As always, investors were also keenly watching the ongoing battle that has been the UK's departure from the European Union.
In corporate news, Apple slipped 2.56%, shaving about 30 points off the Dow's price, following a report that said the tech giant had slashed production orders for all three of its new iPhones following weaker-than-expected demand for the devices.
According to the Wall Street Journal, Apple has had a hard time predicting the number of components and handsets it will need of late following its decision to offer more models.
Nissan was down 7.86% after its chairman Carlos Ghosn was arrested in Japan under suspicion of "significant acts" of financial misconduct.
Resolute Energy rallied 10.46% at the open after it agreed to be bought by Cimarex Energy for $1.6bn. Cimarex shares dropped 4.24%.
Elsewhere, Spectrum Brands tumbled 15.87% after the consumer products company's fourth-quarter earnings and sales missed analysts' expectations.
Colfax lost 8.56% as it agreed to buy orthopaedic device marker DJO Global Inc from Blackstone for $3.2bn in cash. Blackstone was down 1.23% in early trade.
On the data front, sentiment among US housebuilders deteriorated more than expected in November amid growing affordability concerns, according to data released on Monday.
The National Association of Home Builders/Wells Fargo housing market index fell eight points from October to 60, missing expectations for a much smaller drop to 67 but remaining in positive territory.
The component gauging current sales conditions declined seven points to 67, while the component measuring expectations over the next six months dropped 10 points to 65. Meanwhile, the gauge measuring buyer traffic fell eight points to 45.
According to the NAHB, builders have continued to see signs of consumer demand for new homes but customers are taking a pause due to concerns over rising interest rates and home prices.
NAHB chief economist Robert Dietz said: "The decline of builder confidence should be noted by policymakers. Recent statements on economic conditions have lacked commentary on housing, even as housing affordability has hit a 10-year low. Given that housing leads the economy, policymakers need to focus more on residential market conditions."