Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

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%.

 

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Citywire 20: Investec's du Toit on managing the 'jerk factor'

Citywire 20: Investec's du Toit on managing the 'jerk factor'

Investec boss Hendrik du Toit believes he has become far more decisive over the last 20 years, especially when it comes to managing 'jerk' factor.

Play Citywire 20: Hugh Young's bleak lesson

Citywire 20: Hugh Young's bleak lesson

In the latest video to mark Citywire's 20th birthday, Aberdeen Standard Investments Asia head reminisces about one of the toughest periods in his career.

Play IWD 2019 video: fund and wealth figures define diversity

IWD 2019 video: fund and wealth figures define diversity

To mark International Women's Day, we have spoken to a variety of top fund houses and wealth managers about their definition of diversity, and how they hope to achieve a more inclusive workplace.

Read More
Your Business: Cover Star Club

Profile: Richard Whitehead - 'In my 20s, I was very difficult to work with'

1 Comment Profile: Richard Whitehead - 'In my 20s, I was very difficult to work with'

Dart Capital boss Richard Whitehead is at a pivot point for the business, and looking back to assess where he is, as much as he is looking forward

Wealth Manager on Twitter