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Stocks rebound as USMCA trade deal confirmed

Jonathan Garber

Stocks curbed early losses as the United States-Mexico-Canada trade agreement gets the final seal of approval.

The historic agreement is expected to create "north of 176,000 new jobs" and give a $34 billion boost to the U.S. auto industry, Commerce Secretary Wilbur Ross, citing International Trade Commission data, told FOX Business' Maria Bartiromo on Tuesday.

Trade-sensitive names were rallying including AMD, Apple and Caterpillar.

President Trump tweeted the deal is "Good for everybody - Farmers, Manufacturers, Energy, Unions - tremendous support..."

House Speaker Nancy Pelosi said the deal is a "victory for American workers" speaking this morning.

Confirmation of USMCA helped ease concerns of the U.S. House of Representatives' two articles of impeachment against President Trump. On the same day, House Judiciary Chairman Jerrold Nadler, D-N.Y., announced Trump has been charged with abuse of power and obstruction of Congress. A House vote in favor of the articles would make Trump the fourth U.S. president to be impeached.

Boeing shares were under pressure after whistleblower Ed Pierson, a former senior manager at Boeing, agreed to testify before Congress on Wednesday that he warned the planemaker about flaws with the 737 Max, the grounded jetliner involved in two deadly crashes.

Looking at earnings, Autozone reported first-quarter sales that topped expectations, thanks to strength in its retail and commercial businesses. Shares hit a fresh record.

Stich Fix reported better-than-expected top- and bottom-line results and forecast second-quarter adjusted earnings would be higher than expectations. Dave & Buster's Entertainment and GameStop will report after the closing bell.

U.S. Treasurys were little changed, with the yield on the 10-year note holding near 1.825 percent, as the Federal Reserve kicked off its two-day policy meeting. The central bank is expected to hold its key interest rate in a range between 1.5 percent and 1.75 percent at the conclusion of the session on Wednesday.

On the commodities front, gold was higher and West Texas Intermediate crude oil also reversed earlier losses.

In Europe, Britain's FTSE was down 0.3 percent, Germany's DAX fell 0.7 percent and France's CAC was lower by 0.1 percent.

A meeting of the European Central Bank on Thursday also is expected to produce no surprises. Forecasters expect the bank to affirm commitment to its dovish bias amid warnings about European economic weakness and risks to growth.

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British leaders are looking to Thursday's election for 650 seats in the House of Commons to break an impasse over leaving the European Union and London's future relationship with the trade bloc.

Overnight, Hong Kong's Hang Seng shed 0.2 percent and China's Shanghai Composite added 0.1 percent.

FOX Business' Ken Martin and the Associated Press contributed to this article.

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