 Happy Monday and welcome back to On The Money. I'm Sylvan Lane, and here's your nightly guide to everything affecting your bills, bank account and bottom line. See something I missed? Let me know at slane@thehill.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://bit.ly/1NxxW2N. Write us with tips, suggestions and news: slane@thehill.com, vneedham@thehill.com, njagoda@thehill.com and nelis@thehill.com. Follow us on Twitter: @SylvanLane, @VickofTheHill, @NJagoda and @NivElis. THE BIG DEAL–Stock market slumps again after morning rally: From CNBC: "Stocks closed lower on Monday, giving up sharp gains from earlier in the day amid the possibility of more U.S.-China tariffs coupled with a decline in tech shares. "The Dow Jones Industrial Average fell 245.39 points to 24,442.92, erasing a 352-point gain, as Boeing dropped 6.6 percent. The 30-stock index also briefly dipped into correction territory, down 10 percent from a record high reached only earlier this month. "The Nasdaq Composite fell 1.6 percent to 7,050.29. The S&P 500 closed 0.7 percent lower at 2,641.25 after gaining more than 1 percent earlier in the day; it also closed in correction." The big picture: The stock slide is raising concerns that the market is headed for a large correction. That may also put a dent in the economic message in the closing weeks of the midterm campaign by President Trump and Republicans. The Dow wiped out the entirety of its 2018 gains last week, while the S&P 500 dipped into correction territory, falling 10 percent below its September peak. Economists warn that the falling stock market may not simply bounce back, as it has several times this year. The market, they say tends to be an early predictor of economic performance, and may presage worse economic news around the corner. - Statistics released by the government on Friday showed the economy growing at a healthy 3.5 percent rate in the third quarter. That was down, however, from 4.2 percent in the second quarter.
- Third-quarter GDP growth was powered primarily by consumer spending and retail inventories, which typically reflect short-term confidence in the economy. Business investment and capital expansion fell over the past three months, warning signs that the Trump boom could be past its prime.
- "It is an actual sugar rush. This is what it looks like when you have a sudden surge of income into households," said Daniel Alpert, managing partner of investment firm Westwood Capital.
The Hill's Niv Elis and I explain more here.
LEADING THE DAY Trump planning more China tariffs if Xi talks flop: From Bloomberg: "The U.S. is preparing to announce by early December tariffs on all remaining Chinese imports if talks next month between presidents Donald Trump and Xi Jinping fail to ease the trade war, three people familiar with the matter said. "An early-December announcement of a new product list would mean the effective date -- after a 60-day public comment period -- may coincide with China's Lunar New Year holiday in early February. "The list would apply to the imports from China that aren't already covered by previous rounds of tariffs -- which may be $257 billion using last year's import figures, according to two of the people." Survey: Most firms haven't accelerated hiring or investments as a result of GOP tax cuts: That's the finding from a new survey by the National Association for Business Economics (NABE). Eighty-one percent of NABE members surveyed said the 2017 law, known as the Tax Cuts and Jobs Act, hasn't led their firms to make changes to hiring or investment plans. Previous surveys by NABE found that about two-thirds of respondents had no plans to make changes. Survey respondents who work in the goods-producing sector -- a category that includes agriculture, mining, construction and manufacturing -- were most likely to say that their firms have made changes to hiring and investment due to the tax law, with 15 percent of them reporting accelerated hiring and 38 percent reporting accelerated investments. The Hill's Naomi Jagoda breaks it down here.
Why does this matter: Expanded business investment was the primary goal of the massive corporate tax cut the GOP passed in 2017. Without it, the tax cut is unlikely to have its intended impact on U.S. economic growth and productivity. GOOD TO KNOW ODDS AND ENDS - The UK on Monday announced that it would be moving forward with a new digital services tax targeting tech giants.
- The Commerce Department announced Monday that it is restricting U.S. exports to the Chinese semiconductor firm Fujian Jinhua Integrated Circuit Company over concerns the firm could be "involved in activities that are contrary to the national security interests of the United States."
- The American Medical Association is urging the Federal Trade Commission to take action against drug companies they say are contributing to high prices for insulin.
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