Dow Runs Streak to 6 Sessions
Stocks rose on Monday, extending last week’s big gains, after the U.S. reached an agreement with Mexico on tariffs, easing some of the trade concerns which have weighed on the market since early May.
The Dow Jones Industrial Average rose for a sixth straight session, climbing 99.99 points to close Monday at 26,083.93
The S&P 500 hiked 13.39 points to 2,886.73, and is now a little more than 2% from its intraday all-time high hit on May 1.
The NASDAQ Composite jumped 81.07 points, or 1.1%, to 7,823.17, led by Amazon.
President Donald Trump announced Sunday that proposed tariffs on Mexican imports would be suspended indefinitely. Trump said in a Twitter post that he has “full confidence” that Mexico will crack down on migration from Central America, after the two neighbors reached a consensus.
Shares of GM and Ford, two companies that had a lot to lose in a trade battle with Mexico because of their production there, gained ground Monday. GM shares picked up 1.5%, while Ford forged ahead 0.6%,
Meanwhile, investors are closely monitoring the development in the U.S.-China trade war. Trump told reporters on Monday that he believes China will make a deal with the U.S. "because they’re going to have to."
Trump and Chinese leader Xi Jinping are set to meet at the G-20 Summit later this month after both countries slapped tariffs and made tit-for-tat threats
The White House acting budget chief is reportedly seeking to delay the restrictions on Chinese telecom giant Huawei, which would halt its ability to purchase U.S.-made chips. Chipmakers Nvidia added 2.8%, and Advanced Micro Devices gained 4% on Monday following the news.
Adding to the bullish sentiment on Monday was a blockbuster deal in the aerospace industry. Raytheon and United Technologies agreed to an all-stock merger that would create a combined company with $74 billion in annual sales. Both shares surged in pre-market trading. Shares of Raytheon rose 0.7%, while shares of United Technologies fell about 3%.
Salesforce.com announced its acquisition of big data company Tableau Software on Monday. The $15.3-billion all-stock deal marks the biggest purchase in the company’s history. Tableau’s stock surged 37% on Monday and Salesforce.com fell more than 5%.
Prices for the benchmark 10-year U.S. Treasury sagged, lifting yields to 2.15% from Friday’s 2.08%. Treasury prices and yields move in opposite directions.
Oil prices dropped 66 cents to $53.33 U.S. a barrel.
Gold prices dropped $13.90 at $1,332.20 U.S. an ounce.