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What to watch today: Dow to fall again, Trump slams London mayor, and Mexico set to talk

BY THE NUMBERS

It's a new month for Wall Street, but so far it appears it will begin the same way the old one ended — with losses. The Dow has now fallen for six consecutive weeks for the first time in eight years, while the S&P 500 and Nasdaq have posted four straight weekly declines, as ongoing tariff tensions with China and now Mexico as well as U.S. economic uncertainty loom. (CNBC)

* Market drop in May felt serious, but it is normal for stocks (CNBC)

The Dow's Friday close was its lowest since Jan. 29, while the S&P 500 and Nasdaq closed at their lowest since March 8. And although the Nasdaq is still up more than 12% for the year, it is moving closer to correction with a nearly 9% decline from its May 3 record closing high. (CNBC)

Goldman Sachs (GS) sees increased risks of escalations of U.S. trade disputes with China and Mexico. There is now a 60% chance of the U.S. placing a new 10% tariff on the final $300 billion of Chinese imports. There is now a 70% chance of Trump imposing 5% duties on Mexican goods and a 50% chance that goes to 10%. (CNBC)

* US-China trade deal isn't likely at the G-20 summit this month, JP Morgan and Morgan Stanley say (CNBC)
* Morgan Stanley sees global recession 'in three quarters' if Trump escalates trade war (CNBC)

Top officials from the U.S. and Mexico are set to begin talks today over tariffs and border safety. "Mexico is sending a big delegation to talk about the Border," the president tweeted. "Problem is, they've been 'talking' for 25 years. We want action, not talk." (AP)

On the economic calendar, at 10 a.m. ET, both the May ISM manufacturing index and April construction spending are out. Some of the nation's automakers issue May sales today, although Ford (F) and GM (GM) only report on a quarterly basis. There are no major earnings this morning. Box (BOX) releases its quarterly number after today's closing bell.

IN THE NEWS TODAY

President Donald Trump arrived for his first state visit to Britain today. Cracks are starting to appear in the transatlantic relationship, with political analysts concerned that his "off-the-cuff" and "impulsive" leadership style could make matters worse over the coming days. (CNBC)

* Trump calls London Mayor Sadiq Khan a 'stone cold loser' (CNBC)
* Everything you need to know about Trump's state visit (CNBC)

Trump tweeted that White House Council of Economic Advisers Chairman Kevin Hassett will "shortly" leave his post, but did not provide a reason. It's unclear who's set to takeover, in a time of drama between the U.S., China and Mexico. (Reuters)

Secretary of State Mike Pompeo said the White House's Mideast peace plan is possibly "unexecutable" and might not "gain traction," according to an audio recording of the private meeting obtained by The Washington Post.

* Trump administration says it will negotiate with Iran with 'no preconditions' (NY Times)

More than 300 Boeing (BA) 737 jets, including the Max, may have faulty wing parts that don't meet strength and durability standards, the FAA said, following a joint investigation with the aircraft manufacturer. The agency plans to order airlines to remove and replace the parts if their aircraft are affected. (CNBC)

Alphabet's (GOOGL) Google unit is the subject of an upcoming antitrust probe by the Justice Department, according to multiple reports. The probe will focus on Google's search and other businesses. (CNBC)

Apple (AAPL) is expected to launch the latest version of iOS, its software for the iPhone and iPad, today at its annual Worldwide Developers Conference.The company has launched a new version of its iPhone software at WWDC every year since 2009, and analysts and reports don't expect this year to be any different. (CNBC)

Facebook (FB) has been in contact with the Commodity Futures Trading Commission about rolling out a digital currency, according to the Financial Times.

SoftBank's bid to raise a $100 billion fund is off to a rocky start, the Wall Street Journal reports. Some of the world's biggest money managers plan to make limited or no contributions to the Japanese technology giant.

Fiat Chrysler (FCAU) is discussing an improved bid for French carmaker Renault, according to Reuters, in order to win backing from the French government for a deal.

Goldman Sachs (GS) is buying Capital Vision Services, manager of the MyEyeDr optometry practices, from a private equity firm and a Canadian pension fund for $2.7 billion, including debt, according to the Wall Street Journal.

STOCKS TO WATCH

Cypress Semiconductor (CY) will be bought by Germany's Infineon for $23.85 per share in cash, a 34% premium over Friday's close. The deal is valued at $10.1 billion including assumed debt.

Blackstone Group (BX) is buying industrial warehouse assets from Singapore logistics provider GLP For $18.7 billion, in which Blackstone said is the largest-ever private real estate transaction.

Merck (MRK) and AstraZeneca (AZN) reported upbeat study results involving their Lynparza drug. The treatment successfully stalled the advance of pancreatic cancer in certain patients.

Wynn Resorts (WYNN), Las Vegas Sands (LVS) and other casino operators in Macau may see their stocks benefit after gaming revenue in Macau hit a five month high in May.

Waste Management (WM) was upgraded to "outperform" from "sector perform" at RBC Capital, which cited the company's unique positioning within its sector.

WATERCOOLER

"Rocketman," the biographical movie about Elton John, opened this weekend to rave reviews and grossed $25 million in its first weekend. But the movie has stiff competition, being released the same time as "Godzilla: King of the Monsters" and shortly before "Dark Phoenix" and "Toy Story 4." (CNBC)