Dow overcomes the collapse of Boeing to close 200, Apple goes to upgrade



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  • The Dow Jones Industrial Average index closed higher on Monday despite a sharp decline in Boeing shares (BA) after the deadly crash of a 737 MAX 8 jet over the weekend.
  • Nvidia (NVDA) will buy the Israeli company Mellanox Technologies (MLNX) for about $ 7 billion, beating rival Intel (INTC) in chips manufacturing for the semiconductor specialist in cloud computing.
  • Apple (AAPL) climbed 3.5% after Bank of America Merrill Lynch analysts improved their rating on the technology giant, citing the stability of its global supply chain.

Wall Street: overview

Inventories closed on Monday, March 11 for the first time in six days.

The Dow Jones Industrial Average closed up 200.64 points, or 0.79%, to 25,650, despite a sharp decline in heavyweight shares of the Boeing Index (BA); the S & P 500 closed up 1.47% and the Nasdaq 2.02%. At its lowest level in the session, the Dow Jones lost 242 points.

Boeing (BA) shares fell 5.36% to $ 399.89, trading well at the low end of the session. An Ethiopian plane crash that killed 157 people on board pushed Ethiopian, Indonesian and Chinese airlines to immobilize their 737 MAX 8 aircraft fleet. This was the second crash of the last version. from workaholic to a Boeing driveway in recent months.

On the economic front, retail sales in the United States rose 0.2% from December levels, the Census Bureau said. Economists had forecast that the figure would be stable with December, according to the FactSet data provider. Excluding automobiles, retail sales rose 0.9%, while economists forecast an increase of 0.2%.

"The report on retail sales and sales excluding the auto was encouraging," said David Madden, market analyst at CMC Markets UK. "But as the December numbers for both ex-cars have been revised downwards, it breaks the whole report." It appears that savvy buyers curbed their spending in December and took advantage of lower prices in January."

"The consumer's death has been dramatically exaggerated, with January's retail sales rebounding after a disappointing December reading," said Chris Zaccarelli, investment director at the Independent Advisor Alliance.

Federal Reserve Chairman Jerome Powell said on Sunday that the US central bank was "not in a hurry" to change the level of interest rates.

President Donald Trump on Monday released his budget proposal for 2020 which provides for $ 8.6 billion in new funding for the anti-border wall. The proposal also calls for a 5% increase in military spending, as well as deep cuts in national programs and foreign aid. The proposal includes a 23% reduction in state department funding, a 15% reduction in USDA spending and a 31% reduction in the agency's protection budget. 39; environment. The budget for internal security would increase by 7.4%.

Apple (AAPL) climbed after Bank of America analysts Merrill Lynch improved their rating on the technology giant, citing the stability of its global supply chain. Wamsi Mohan, an analyst at BAML, who had brought down his company's rating to Apple Neutral in early November, made his assessment to purchase with a target price of $ 210 per share, an increase of 16.6 % compared to the previous level of the bank. Shares rose 3.5% to $ 178.90.

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Nvidia (NVDA) has announced plans to acquire Mellanox Technologies (MLNX) for nearly $ 7 billion, ahead of rival chip maker Intel (INTC), the semiconductor cloud specialist. Nvidia said it would pay $ 125 per share for Mellanox, a 15% premium over the closing level of the Friday action. Nvidia shares rose 7 percent to $ 161.14, while Mellanox rose 7.8 percent to $ 117.89.

Tesla (TSLA) abruptly reversed its plan to transfer all its sales online, claiming in an article published Sunday on its blog that it would remain "a lot more open stores". CEO Elon Musk has announced his intention to close all Tesla outlets a few days ago. Tesla said it would need to raise vehicle prices by about 3% on average worldwide to keep its sites open, although it plans to keep its base model of $ 35,000 at the end of the year. same price. Shares rose 2.39% to $ 290.92.

Barrick Gold (GOLD) has withdrawn Monday from its hostile bid of $ 18 billion over rival Newmont Mining (NEM), claiming that the world's largest gold mining companies will form a joint venture in the United States. Nevada. Barrick shares rose 2.09% to $ 13.20, while Newmont Mining declined slightly to $ 33.45.

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