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© Reuters. Traders work on the ground at the NYSE in New York
By Aparajita Saxena
(Reuters) – Major Wall Street indexes rose on Monday after the United States abandoned plans to impose tariffs on Mexican goods, while a multi-billion dollar deal in the industrial sector added to the optimistic conviction.
Mexico on Friday agreed to intensify its efforts to curb the flow of illegal migrants from Central America, following threats by US President Donald Trump to impose import duties. 5% off all Mexican products as of Monday.
"The US economy and the Mexican economy would have been worse off if tariffs had been imposed," said David Kass, a professor of finance at the University of Maryland.
"Investors are also optimistic today in the hope that the trade war with China will also be resolved in the near future," Kass said.
Industries and industries reached their highest level in a month, after their strongest weekly rise Friday since the end of November. The benchmark is down 2% from its early May record.
US manufacturers, who have been building vehicles in Mexico for a long time, traded higher, with General Motors Co (NYSE 🙂 gaining 2.1% and Ford Motor (NYSE 🙂 Co 1.3%. Beer maker Corona Constellation Brands (NYSE :), with a strong showing in Mexico, advanced 2.1%.
United Technologies Corp (NYSE 🙂 has agreed to consolidate its aerospace business with defense contractor Raytheon (NYSE 🙂 Co) to create a new company worth about $ 121 billion.
"It's not just the market, it's the underlying economy that is not likely to weaken if you have these signs of optimism," Willie said. Delwiche, investment strategist at Robert W. Baird in Milwaukee.
Shares of United Technologies, however, fell 1.7% after Trump said he was "not worried" about their merger as this could hurt competition in the sector. Raytheon rose 2.2%.
Technology stocks advanced 1.7% and were the largest increase among the top nine sectors of S & P.
Large cap companies, including Apple Inc. (NASDAQ :), Microsoft Corp (NASDAQ :), Amazon.com (NASDAQ 🙂 and JPMorgan Chase (NYSE :), grew between 1.6% and 4.4%. At 11:39 ET, the Dow was up 176.68 points, or 0.68%, to 26,160.62, the S & P 500 up 26.30 points, or 0.92%, to 2,899, 64 and the increase of 135.47 points, or 1.75%, to 7,877.58.
In another contract, Salesforce.com Inc. (NYSE 🙂 announced the purchase of Big Data Company, Tableau Software, for $ 15.3 billion. Salesforce.com shares declined 4.5%, while those in Tableau jumped 34.9%.
Among the sectors, only defensive public services, consumer staples and real estate traded lower.
Chemical marker LyondellBasell Industries (NYSE 🙂 rose 4.9%, the highest of all S & P companies, following a 37 million share buyback program launched on Monday.
Kraft Heinz (NASDAQ 🙂 Co gained 4.6% after the packaged food company said that the financial figures restated last month were accurate as a result of an internal investigation.
Increasing issues outnumbered by a ratio of 2.13 to 1 on the NYSE and 2.37 to 1 on the Nasdaq.
The S & P index posted 58 new highs over 52 weeks and no new lows, while the Nasdaq recorded 84 new highs and 34 new lows.
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