STREAMING NOW: Watch Now

CNN Business Before the Bell

CNN's Christine Romans has the day's top business headlines before the opening bell on Wall Street on Monday, December 17.

Posted: Dec 18, 2018 9:43 AM
Updated: Dec 18, 2018 9:45 AM

The US stock market sank deeper into the red following sluggish economic reports on Monday and bad news from a couple of blue chip giants.

The Dow fell more than 200 points before bouncing back a bit. The S&P 500 hit its lowest level of the year. And the Nasdaq joined the Dow & S&P 500 in negative territory for 2018. All three indexes have plunged more than 6% so far this December.

A weaker reading from the New York Federal Reserve about manufacturing in the Empire State and a drop in confidence from the nation's homebuilders weighed on the markets.

"Investors are zeroing in on this idea of slower growth for 2019," said Michael Arone, chief investment strategist at State Street Global Advisors. "More people are worried about a recession in late 2019 or 2020."

The political noise in Washington isn't helping either. President Trump, in a tweet Monday morning, repeated his criticism of the Federal Reserve for its recent rate hikes. The Fed meets Wednesday and is widely expected to raise rates again.

But Trump tweeted that "it is incredible that with a very strong dollar and virtually no inflation, the outside world blowing up around us, Paris is burning and China way down, the Fed is even considering yet another interest rate hike. Take the Victory!"

The Fed is supposed to be politically independent. Any evidence that it might be swayed by attacks from Trump could unnerve the markets.

"If the Fed doesn't raise rates it will look like it's succumbing to the bullying of Trump's tweets," Arone said.

Investors had more to worry about than the economy and politics though.

The Dow's losses were led by a continued drop in healthcare and consumer products giant Johnson & Johnson.

J&J (JNJ) plunged 10% Friday following a bombshell report by Reuters alleging that J&J was aware its trademark baby powder contained asbestos. J&J has said the Reuters report is factually incorrect. But the stock still fell nearly 2% more Monday.

Dow component UnitedHealth (UNH) fell 2% after a federal judge in Texas ruled late Friday that the individual mandate of the Affordable Care Act, aka Obamacare, was unconstitutional.

This is unlikely to affect health coverage for Americans for quite some time, but it does lead to further uncertainty about the ultimate fate of the landmark law.

Shares of rival insurer Cigna (CI) -- which is in the process of merging with pharmacy benefits manager Express Scripts (ESRX) -- and drugstore giant CVS (CVS), which recently acquired insurer Aetna -- were lower Monday as well.

And Dow component Goldman Sachs (GS) was weighing on the broader market too. The Wall Street investment banking giant is in the middle of a scandal in Malaysia.

The Malaysian government filed criminal charges against Goldman Sachs Monday due to its involvement with investment fund 1MDB.

Malaysia has accused Goldman Sachs of misleading investors about bond sales for the fund that were underwritten by Goldman Sachs. The Fed is said to be looking into Goldman Sachs' ties to 1MDB as well.

Shares of Goldman Sachs fell 2% Monday and are now down nearly 35% this year, making the stock the Dow's worst performer of 2018.

New York Coronavirus Cases

County data is updated nightly.

Cases: 2523560

Reported Deaths: 56130
CountyCasesDeaths
Kings33405310847
Queens31536810288
Suffolk2395573605
Nassau2143703293
Bronx2076626751
New York1681074636
Westchester1436362340
Erie1064171949
Richmond889441935
Monroe842971188
Orange57538920
Rockland53112779
Onondaga52054761
Dutchess35615499
Albany30838390
Oneida28644589
Broome24451405
Niagara24031397
Saratoga20287200
Ulster17273278
Schenectady16731227
Rensselaer14808167
Putnam1249298
Chautauqua12428175
Oswego11668113
Chemung10932156
St. Lawrence10524127
Steuben10133173
Ontario9352110
Jefferson888076
Cayuga8658107
Sullivan847383
Wayne816784
Cattaraugus7732115
Genesee7013132
Herkimer6806128
Clinton672540
Tompkins650459
Fulton6331104
Madison6187102
Montgomery5966141
Livingston572771
Warren546084
Cortland534279
Tioga509471
Columbia5009111
Chenango468986
Allegany461597
Washington461367
Otsego457555
Wyoming439358
Greene438586
Orleans434187
Franklin428020
Lewis360338
Delaware356047
Seneca274163
Essex230731
Schoharie229521
Yates164728
Schuyler153817
Hamilton4383
Unassigned14426
Out of NY0317
Utica
Cloudy
57° wxIcon
Hi: 55° Lo: 50°
Feels Like: 57°
Oneonta
Cloudy
51° wxIcon
Hi: 56° Lo: 50°
Feels Like: 51°
Herkimer
Cloudy
57° wxIcon
Hi: 57° Lo: 51°
Feels Like: 57°
Old Forge
Cloudy
57° wxIcon
Hi: 54° Lo: 49°
Feels Like: 57°
WKTV Radar
WKTV Temperatures
WKTV Severe Weather
Game Day Deals - New Deals Each Week
Chapter Aesthetic October Giveaway
Cool To Be Kind 2021
Looking for work or looking to hire? Check out the WKTV Job Fair!
Saluting Those Who Are Proud 2 Serve