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Always up. Major US stock indexes continued to gain ground on Monday after the Trump administration lowered tariffs on imports from Mexico. Mergers and acquisitions activity has increased,
United Technologies
(ticker: UTX) and
Raytheon
(RTN) has agreed to join together to create a single defense and aerospace company, and
Salesforce.com
(ticker: CRM) announced the acquisition of the data analysis platform
Tableau Software
(THE DATA). Today After the bell, we …
- to ask whether the suspension of Mexican tariffs can last;
- observe the growing movements of the United States and China in technological warfare;
- and check the latest trade data from China.
Calm down
Inventories rose again on Monday as a result of renewed commercial optimism. the
Dow Jones Industrial Average
78.74 points, or 0.3%, to close at 26,062.68, while the
S & P 500
added 13.39 points, or 0.5%, to 2886.73 and the
Nasdaq Composite
earned 81.07 points, or 1%, at 7823.17. Nevertheless, the three indices closed well the highs of the day.
It makes sense. Last Friday, President Donald Trump tweeted that the United States has reached an agreement with Mexico on border security issues and that tariffs are suspended for an indefinite period. Mexico "will take strong measures to stem the tide of migration across Mexico and to our southern border," Trump wrote.
Still, the risk remains. Official State Department refills suggest that the situation will be revisited in 90 days. "This adds to the uncertainties of supply chain planning and could lead to a further increase in imports – especially consumer durables – before the peak period from August to October," said Panjiva, a company S & P Global Trade Data.
And do not forget China, where a commercial truce still seems a long way off. The Chinese Ministry of Commerce announced last month that Beijing is drawing up its own list of "unreliable" foreign entities and individuals that violate market rules, disrupting Chinese business supplies and harming business interests. and to Chinese companies. The reports also suggest that Chinese authorities convened several large technology companies last week, including
Intel
(INTC),
Qualcomm
(QCOM),
Microsoft
(MSFT)
Dell Technologies
(DELL), and
Cisco Systems
(CSCO) and warned them of the disastrous consequences if they cooperated with the Trump government's ban and ended the trading partnership with China.
At the same time, US lawmakers have enacted legislation that could strengthen the regulation of Chinese companies listed in the United States worth more than $ 1 trillion, including:
Ali Baba
(Baba) and
Baidu
(BIDU), and requires them to comply with US financial reporting rules.
In the midst of turmoil and weakening domestic demand, China's trade activity declined 3.4% in May, mainly due to an 8.5% drop in imports, the strongest in the world. since July 2016, while exports had increased by 1.1% unexpectedly. The numbers are far less good than with respect to trade with the United States: imports fell 26.8% from one year to the next, while exports fell 4.2%, which has widened China's trade surplus with the United States – which President Trump has frequently criticized – 9.4% to 26.9 billion dollars.
President Trump is scheduled to meet Chinese President Xi Jinping at the G-20 summit later this month. In an interview today, Trump said he would immediately cut tariffs on China's latest imports, worth $ 300 billion, if Xi did not show up for negotiations.
And that would make Mexico look like a radical change.
The hot stock
Analog Devices
(ADI) rose 5.8% to $ 106.55 after analysis by the Goldman Sachs analyst of the chip maker at "Buy from Sell" and raised its price target.
The biggest loser
The Salesforce.com stock dropped 5.3% to 152.79 USD after agreeing to buy Tableau Software's data analytics company for $ 15.7 billion in shares.
–Sophia Cai
Write to Evie Liu at [email protected]
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