The daily business briefing: November 13, 2018

1. Amazon to announce HQ2 split between New York City and Virginia

Amazon is expected to announce Tuesday that it has decided to divide its new, second headquarters between New York City and Northern Virginia, several news organizations reported Monday night. The headquarters will be split between Long Island City in the New York borough of Queens and Crystal City, Virginia, with about 25,000 employees at each location. Amazon began the search for a second headquarters equal to its base in Seattle in September 2017. Cities across the country tried to lure the company with tax breaks and other incentives. Reports of the plan to split the new headquarters, dubbed HQ2, emerged last week. Some analysts say the decision makes sense, because it would be hard to find 50,000 qualified workers in a single region.

The Washington Post Politico

2. Trump blames Democrats for stock market troubles

President Trump on Monday blamed the stock market's plunge on the prospect of investigations of his administration by Democrats when they take control of the House of Representatives when the new Congress convenes in January. "The prospect of Presidential Harassment by the Dems is causing the Stock Market big headaches!" Trump tweeted. U.S. stocks dropped sharply on Monday on concerns that technology stocks were in trouble. The Dow Jones Industrial Average fell by 2.3 percent, the S&P 500 dropped by 2 percent, and the tech-heavy Nasdaq Composite plummeted by 2.8 percent. Analysts said the market's volatility had nothing to do with politics.

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The Washington Post

3. Apple shares plunge after supplier reports reduced orders

Apple shares fell by 5 percent Monday after a key supplier slashed its financial outlook, stoking concerns about sagging iPhone demand. Lumentum Holdings, which provides facial recognition technology used in the newest iPhones, cut its revenue expectations by $70 million, saying a major customer had reduced its orders. Lumentum did not mention Apple by name, but the tech giant accounted for 30 percent of its fiscal 2018 revenue. The drop in Apple shares fueled a broader market selloff. Lumentum shares plummeted by more than 30 percent.

Fox Business

4. Home Depot blasts past expectations

Home Depot shares rose by 2.3 percent in pre-market trading on Tuesday after the home-improvement retailer reported quarterly earnings and revenue that exceeded analysts' expectations. The company also raised its full-year outlook. Net income for the quarter rose to $2.51 per share from $1.84 in the same period last year. The FactSet consensus was $2.27 per share. Home Depot's unexpectedly strong earnings report helped lift U.S. stocks after Monday's nosedive. Dow Jones Industrial Average futures rose early Tuesday, pointing to gains of 150 points at the open after Monday's 602-point drop.

MarketWatch CNBC

5. U.S., China discuss easing trade tensions

Treasury Secretary Steven Mnuchin has resumed discussions with his Chinese counterpart, Vice Premier Liu He, about easing trade tensions between the world's two biggest economies. They spoke by telephone Friday, officials said Monday, as President Trump and Chinese President Xi Jinping prepare to meet at the end of the month. The U.S. is demanding that China make a concrete offer on a trade deal before negotiations start, but Chinese officials want to start discussions first, reportedly fearing they will lose leverage once they put an offer on the table. The Friday conversation did not produce a breakthrough.

MarketWatch