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The stock market seems to appreciate the new trade agreement between the United States, Canada and Mexico.
Shares exploded after the three countries agreed to sign an eleventh hour deal to replace NAFTA.
The Dow rose more than 190 points, a gain of about 0.8%. The S & P 500 and Nasdaq also posted strong gains early in the session.
The reworked trade deal, announced Sunday night, came after Canada agreed to give US dairy farmers better access to the Canadian market.
The United States has also agreed to make concessions on certain car and truck tariffs built in Canada and Mexico as part of the agreement, which replaces NAFTA and will be called the US-Canada Agreement. Mexico-Canada.
Headlines of major automakers soared to news, including GM and Ford, up nearly 2% at the open market.
This is not just the trade agreement that helps move markets.
The surprise dismissal of General Electric CEO John Flannery, and an agreement between Tesla and the SEC also have a considerable impact.
Actions of GE (GE) climbed nearly 14% following the announcement that Flannery, who had been director since August 2017, is being replaced by Larry Culp, a former head of an industrial conglomerate Danaher (DHR).
Culp, who joined GE's board of directors in April, faces a difficult task in getting GE back on track. GE also announced Monday that it was being accused by its troubled GE Power unit. The stock had dropped 35% so far this year before Monday's surge.
GE's market value dropped below $ 100 billion last week for the first time in more than nine years. And the company was removed from the Dow Jones Industrial Average in June, after more than 100 years of existence in the iconic market barometer.
Tesla was also set to gather on Monday after the electric car maker reached an agreement with the Securities and Exchange Commission that Elon Musk will step down as president but allow him to remain as CEO.
Actions of You're here (TSLA) were up 16% early in the session. The stock plunged 14% Friday to the announcement that the SEC had filed a lawsuit accusing Musk of making "false and misleading statements" earlier this summer when he tweeted that he had "guaranteed funds" for a private takeover of Tesla.
As part of the agreement between Tesla and the SEC, Musk has admitted no fault. The company also pays a fine of $ 20 million.
CNNMoney (New York) First published on October 1, 2018 at 9:36 am
