US close: Markets end higher as traders shrug off global tensions
US stocks finished in the green on Monday, as traders apparently brushed off ongoing global trade tensions.
The Dow Jones Industrial Average ended the session up 0.72% at 24,813.69, the S&P 500 was was ahead 0.45% at 2,746.87, and the Nasdaq 100 was 0.84% higher at 7,143.57.
“Climbing 200 points [at the open], the Dow crossed 24800 for the first time in a week, despite little improvement in the things – namely Trump slapping tariffs on metals imports from the EU, Mexico and Canada, alongside stalled talks with China – that helped drive it lower in the first place,” said Connor Campbell, financial analyst at SpreadEx.
After the latest round of trade negotiations between the US delegation - led by Commerce Secretary Wilbur Ross - and China over the weekend, Beijing said "positive and concrete progress" had been made.
An official from the People’s Republic said there was "good communication" between both sides on agriculture and energy, while relevant details were yet to be confirmed by both sides, Xinhua reported.
However, China also threatened to withdraw from its previously agreed commitments with Washington to cut its bilateral trade deficit on goods with the US if President Donald Trump moves ahead with tariffs on $50bn-worth of Chinese products.
Canada and the European Union also indicated they might respond to Washington's tariffs on their exports of aluminium and steel with their own countermeasures.
“The angry responses from various politicians in response to Donald Trump's tariffs on steel and aluminium and the countermeasures that will likely follow doesn't fill anyone will optimism,” said Craig Erlam at Oanda.
“This may well be a tactic to force countries back to the negotiating table that could in the longer run result in smaller deficits for the US and what it deems to be fairer trade but this is far from guaranteed and Trump is clearly taking a big risk, something he isn't exactly averse to.”
On the economic front, new orders for US-made goods turned in their biggest drop in three months in April on the back of a decline in demand for aircraft.
Factory goods orders fell 0.8% to $494.4bn in April from a month earlier, the Commerce Department said on Monday.
That was a steeper decline than the 0.5% predicted by economists, while data for the previous month was revised up to a 1.7% increase.
The report also showed that durable goods orders declined 1.6%.
Following the report, Barclays Research's tracking estimate for second quarter US GDP growth was unchanged at an annualised pace of 3.4%.
Meanwhile, in company news, PC-maker Dell Technologies reversed earlier gains to rise 0.21% after posting a 19% surge in first quarter sales to $21.36bn, easily topping forecasts for a rise to $19.37bn.
Walmart picked up 2.93% on news that private equity outfit Advent International was set to buy 80% of its Brazilian arm for an undisclosed sum.
Shares in Southwest Airlines took off 1.35% despite the budget airline disclosing that revenues per available seat mile had fallen 3% from their year-ago level.
Dow Jones - Risers
Dowdupont Inc. (DWDP) $67.13 4.71%
Walmart Inc. (WMT) $85.42 2.93%
Merck & Co. Inc. (MRK) $62.02 2.41%
Home Depot Inc. (HD) $191.36 2.14%
Visa Inc. (V) $133.07 1.70%
Nike Inc. (NKE) $73.83 1.47%
American Express Co. (AXP) $99.45 1.22%
Boeing Co. (BA) $360.71 1.12%
Procter & Gamble Co. (PG) $74.18 0.99%
Microsoft Corp. (MSFT) $101.67 0.87%
Dow Jones - Fallers
General Electric Co. (GE) $13.72 -2.77%
Chevron Corp. (CVX) $122.26 -1.64%
Exxon Mobil Corp. (XOM) $80.97 -1.05%
Intel Corp. (INTC) $56.83 -0.44%
Cisco Systems Inc. (CSCO) $43.58 -0.18%
Verizon Communications Inc. (VZ) $47.83 0.02%
JP Morgan Chase & Co. (JPM) $108.42 0.05%
Travelers Company Inc. (TRV) $129.72 0.33%
United Technologies Corp. (UTX) $126.29 0.38%
Caterpillar Inc. (CAT) $152.50 0.39%
S&P 500 - Risers
Under Armour Inc. Class A (UAA) $22.71 6.32%
Target Corp. (TGT) $76.36 4.88%
Kohls Corp. (KSS) $71.56 4.67%
Macy's Inc. (M) $37.10 4.33%
Dollar General Corp (DG) $91.01 4.02%
GameStop Corp. (GME) $14.24 3.79%
International Paper Co. (IP) $57.27 3.67%
L Brands Inc (LB) $35.80 3.56%
Urban Outfitters Inc. (URBN) $44.21 3.29%
Chipotle Mexican Grill Inc. (CMG) $443.74 3.17%
S&P 500 - Fallers
Wyndham Destinations Inc. (WYND) $49.72 -54.19%
First Solar Inc. (FSLR) $61.74 -6.36%
Spectra Energy Corp. (SE) $15.31 -6.13%
Newfield Exploration Co (NFX) $28.20 -5.84%
Wynn Resorts Ltd. (WYNN) $182.83 -5.02%
Range Resources Corp. (RRC) $15.61 -4.64%
Devon Energy Corp. (DVN) $40.09 -3.56%
Chesapeake Energy Corp. (CHK) $4.33 -3.36%
CenturyLink Inc. (CTL) $17.64 -3.18%
Cimarex Energy Co (XEC) $85.30 -3.17%
Nasdaq 100 - Risers
JD.com, Inc. (JD) $38.16 5.74%
Baidu Inc. (BIDU) $260.90 5.01%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $256.60 4.67%
Mercadolibre Inc. (MELI) $307.65 3.70%
Align Technology Inc. (ALGN) $343.20 3.04%
Ross Stores Inc. (ROST) $83.14 3.01%
Ctrip.Com International Ltd. Ads (CTRP) $46.41 2.93%
Nvidia Corp. (NVDA) $264.85 2.81%
Gilead Sciences Inc. (GILD) $70.21 2.80%
Charter Communications Inc. (CHTR) $267.98 2.33%
Nasdaq 100 - Fallers
Wynn Resorts Ltd. (WYNN) $182.83 -5.02%
Express Scripts Holding Co (ESRX) $75.54 -1.99%
J.B. Hunt Transport Services Inc. (JBHT) $127.50 -1.65%
Vertex Pharmaceuticals Inc. (VRTX) $149.65 -1.58%
Shire Plc Ads (SHPG) $158.55 -1.37%
Western Digital Corp. (WDC) $84.85 -1.19%
CSX Corp. (CSX) $64.69 -1.15%
Expedia Group Inc. (EXPE) $118.88 -0.95%
Mylan Inc. (MYL) $38.50 -0.88%
Take-Two Interactive Software Inc. (TTWO) $113.68 -0.79%