US close: Street packs on even more gains after Mexico deal
US stocks piled on more gains on Tuesday, following strong momentum on Monday, with Tiffany's on the rise following well-received results.
Dow Jones I.A.
38,386.09
04:30 15/10/20
Nasdaq 100
17,782.71
12:15 29/04/24
The Dow Jones Industrial Average ended the session ahead 0.06% at 26,064.02, the S&P 500 added 0.03% to 2,897.52, and the Nasdaq 100 was 0.15% higher at 7,570.25.
Donald Trump announced on Monday that the US and Mexico had agreed to the terms of a new trade deal which he hoped would replace the North American Free Trade Agreement (NAFTA).
It was reported that the new deal would require 75% of auto content to be made in the NAFTA region, up from 62.5%, while 40% to 45% would have to be made by workers earning an average of at least $16 per hour.
Stocks surged on the news on Monday, with the S&P 500 and the Nasdaq hitting fresh records and the Dow breaching 26,000 for the first time since early February.
“The trade deal needs to be approved by Congress, but investors are clearly confident of it getting approved,” said CMC Markets analyst David Madden.
“Trade tensions have been hanging over equity markets, and this is certainly a step in the right direction.
“It is believed that Canada will be on the agenda next, and traders will be paying close attention to those developments.”
Meanwhile, US-China trade relations were still in focus.
Madden said it appeared that the trade spat would “rumble on”, with chatter in the markets that the US was eyeing up another round of tariffs on Chinese goods of up to $200bn worth of imports from the People’s Republic.
"The US Department of agriculture has plans to financially support farmers who have been targeted by Beijing’s tariffs, and this initiative suggests how determined Washington DC is to maintain a hard-line.”
On the data front, US wholesale inventories for July rose by a greater-than-expected 0.7%, well and truly topping estimates of a 0.2% reading.
Retail inventories came in at 0.4% versus the 0.1% last month.
Elsewhere, the US July advance goods trade deficit came in at $72.2bn, over and above the $69bn forecast by economists as exports dipped to $140bn and imports rose to $212.2bn.
In other news, US home prices pumped the brakes in June, with the S&P Case-Shiller National Home Price Index coming in at 6.2%, down from the 6.4% recorded in the prior month, indicating that rising mortgage rates and growing affordability challenges may finally be slowing price gains.
Lastly, service sector activity was "robust" in August, according to the Federal Reserve Bank of Richmond, who revealed that its manufacturing index was higher than expected at 24, versus estimates of 17, ahead of the prior month's reading of 20.
In corporate news, Tiffany & Co was 0.99% higher at the closing bell, paring back some earlier gains which came after its second-quarter earnings and sales beat forecasts and the company lifted its outlook.
Aspen Insurance was up 2.24% after agreeing to be bought by private equity firm Apollo Global Management in a $2.6bn deal.
Dow Jones - Risers
Goldman Sachs Group Inc. (GS) $242.37 3.09%
Caterpillar Inc. (CAT) $142.00 2.74%
Dowdupont Inc. (DWDP) $70.74 2.21%
Walmart Inc. (WMT) $96.10 1.65%
American Express Co. (AXP) $107.28 1.44%
Apple Inc. (AAPL) $219.70 0.81%
Cisco Systems Inc. (CSCO) $46.95 0.77%
McDonald's Corp. (MCD) $161.60 0.73%
Chevron Corp. (CVX) $119.86 0.71%
Microsoft Corp. (MSFT) $110.26 0.60%
Dow Jones - Fallers
Coca-Cola Co. (KO) $45.37 -0.68%
United Technologies Corp. (UTX) $134.50 -0.64%
Merck & Co. Inc. (MRK) $68.63 -0.52%
JP Morgan Chase & Co. (JPM) $116.14 -0.49%
Johnson & Johnson (JNJ) $134.32 -0.44%
Verizon Communications Inc. (VZ) $54.65 -0.38%
Walgreens Boots Alliance, Inc. (WBA) $69.28 -0.23%
Pfizer Inc. (PFE) $41.50 -0.19%
Exxon Mobil Corp. (XOM) $80.28 -0.14%
Visa Inc. (V) $145.20 -0.14%
S&P 500 - Risers
PG&E Corp. (PCG) $45.68 4.72%
Borg Warner Inc. (BWA) $46.19 4.01%
QUALCOMM Inc. (QCOM) $69.78 3.62%
Gap Inc. (GPS) $30.71 3.58%
Ford Motor Co. (F) $10.01 3.41%
Hewlett Packard Enterprise (HPE) $16.74 3.33%
Estee Lauder Co. Inc. (EL) $140.09 3.32%
Goldman Sachs Group Inc. (GS) $242.37 3.09%
American Airlines Group (AAL) $40.69 2.96%
Endo International Plc (ENDP) $16.58 2.92%
S&P 500 - Fallers
GameStop Corp. (GME) $14.03 -15.23%
Signet Jewelers Ltd (SIG) $55.07 -5.78%
Best Buy Co. Inc. (BBY) $77.57 -5.49%
Chipotle Mexican Grill Inc. (CMG) $494.09 -5.11%
Chesapeake Energy Corp. (CHK) $4.43 -3.06%
Southwestern Energy Co. (SWN) $5.51 -2.56%
Murphy Oil Corp. (MUR) $30.49 -2.37%
EQT Corp. (EQT) $50.03 -2.19%
Range Resources Corp. (RRC) $16.13 -2.09%
Campbell Soup Co. (CPB) $39.83 -2.09%
Nasdaq 100 - Risers
QUALCOMM Inc. (QCOM) $69.78 3.62%
American Airlines Group (AAL) $40.69 2.96%
Xilinx Inc. (XLNX) $76.99 2.33%
Incyte Corp. (INCY) $73.85 2.06%
Intuit Inc. (INTU) $215.93 1.87%
DENTSPLY Sirona Inc. (XRAY) $39.18 1.71%
Dish Network Corp. (DISH) $36.33 1.62%
Autodesk Inc. (ADSK) $156.81 1.41%
Netflix Inc. (NFLX) $368.49 1.07%
Symantec Corp. (SYMC) $20.26 1.00%
Nasdaq 100 - Fallers
Tesla Inc (TSLA) $311.86 -2.32%
J.B. Hunt Transport Services Inc. (JBHT) $121.69 -1.70%
Fiserv Inc. (FISV) $78.44 -1.59%
JD.com, Inc. (JD) $32.16 -1.56%
Kraft Heinz Co. (KHC) $58.79 -1.31%
Baidu Inc. (BIDU) $225.72 -1.26%
Lam Research Corp. (LRCX) $174.14 -1.17%
Biomarin Pharmaceutical Inc. (BMRN) $98.92 -1.11%
Ctrip.Com International Ltd. Ads (CTRP) $39.72 -1.07%
Microchip Technology Inc. (MCHP) $87.50 -0.98%