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Overnight Markets: Wall Street gains on trade talk optimism

Overnight Markets: Wall Street gains on trade talk optimism

Wall Street closed higher on Monday led by industrial sector stocks on optimism over trade talks between the US and China.

The Dow Jones Industrial Average added 89 points, or 0.4%, to 25,759, the S&P 500 gained seven points, or 0.2%, to 2,857 and the Nasdaq Composite added five points, or 0.06%, to 7,821.

The planned talks between the US and China later this week provided a boost to the trade-sensitive industrial sector, which rose 0.7%. Industrials added the most gains to the S&P 500 among the index’s major sectors.

Easing concerns over a potential trade war also helped lift prices of oil and metal. The Nasdaq moved into positive territory as technology stocks pared losses.

Two multi-billion deals also boosted investor sentiment and reaffirmed confidence that the US economy continues its steady expansion.

PepsiCo slipped 0.1% after the soft drink giant unveiled plans to buy the snack food major SodaStream International Ltd. for $3.2 billion. Shares of SodaStream jumped 9.4%.

In another deal news, Tyson Foods is set to acquire Keystone Foods for $2.16 billion in cash. Tyson’s shares added 1.6%.

Elsewhere, Intel Corp shares dropped 1.2% after brokerage Cowen & Co said the chipmaker’s disclosure of new security bugs in some of its microprocessors may push cloud companies to seek other suppliers.

Nike Inc hit a record high of $82.42 after Piper Jaffray and Susquehanna raised their ratings on the stock. Nike shares were last up 3.1%.

Estee Lauder added 2.7% after topping quarterly profit and sales estimates as customers bought more of its high-margin Clinique and La Mer skin care products.

Tesla Inc. reversed earlier losses to rise 1%. JP Morgan had slashed its price target on the electric-car company, dropping it to $195 from $308.

In Asia, shares were trading mixed on Tuesday in morning session after US President Donald Trump accused China and Europe of manipulating their currencies.

In Japan, the Nikkei 225 was trading 0.18% lower, while South Korea’s Kospi Index was up 0.35%. In Australia, the S&P/ASX 200 fell 0.85%.

In China, the Shanghai Composite Index rose 0.62% and Hong Kong’s Hang Seng Index added 0.05%.

 

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