|Day's Range||24,883.06 - 25,086.49|
|52 Week Range||20,860.16 - 26,616.71|
The U.S. trade deficit with China looks to be headed higher even if China lives up to a pledge to boost agricultural and energy imports. The U.S. ran a $375 billion deficit in goods with China last year, exporting $130.37 billion worth of goods to the Asian giant. Over the weekend, Treasury Secretary Steven Mnuchin said the U.S. has specific, “industry by industry” targets for boosting exports to China, as the agreement powered stock-market gains (^DJI) on Monday.
The index was supported by a rally in technology stocks, which rose 1.2% on the day. The mood was upbeat after Treasury Secretary Steven Mnuchin said over the weekend that the Trump administration would delay implementing tariffs on Chinese goods and “put the trade war on hold” while working out details of a deal between the countries. At the end of trade negotiations this weekend, China agreed to buy larger amounts of U.S. goods to help narrow the trade deficit between the two economies, but did not agree to the specific U.S. target of $200 billion.
Shares of General Electric Co. rallied on Monday, with the industrial conglomerate on track to close at its highest level in nearly four months and officially entering bull-market territory. It is up about 22% from its 52-week low, which officially puts the Dow component into bull-market territory, having broken out of a lengthy bear-market stretch.
as the trade war rhetoric between the U.S. and China cooled. The Dow traded above 25,000 for the first time since March 16. General Electric rose 3.6% after reaching an $11.1 billion deal with Wabtec Corp.
Do April's Inflation, Retail Sales Signal a Faster US Rate Hike? According to the data provided by the US Bureau of Labor Statistics, the US Consumer Price Index, or the inflation index, rose 0.2% in April compared to its 0.1% fall in March. This inflation figure didn’t meet the market’s expectation of a 0.3% rise.
U.S. Treasury Secretary Steven Mnuchin said on Sunday the United States and China had agreed to drop their tariff threats on billions of dollars worth of each country's goods, while China on Monday praised a significant dialing back of tensions.
OK, now look at this recent chart from David Rosenberg of Gluskin Sheff and Associates and ask yourself that very question. Or you could just avoid the stress of trying to time this market and just heed the advice of Jack Bogle, Vanguard founder and the father of index investing: “The idea that a bell rings to signal when investors should get into or out of the market is simply not credible,” he once said.
U.S. stocks rallied broadly on Monday after the United States and China put a potential trade war "on hold" to work on a wider agreement, with sentiment also getting a boost from the nearly $28 billion worth of U.S. merger deals. U.S. Treasury Secretary Steven Mnuchin said on Sunday the United States and China had agreed to drop their tariff threats on billions of dollars worth of each country's goods, while China on Monday praised a significant dialing back of tensions.
Shares of Caterpillar Inc. surged 3.0% in morning trade Monday, enough to pace the 29 of 30 Dow Jones Industrial Average components that are gaining ground, as optimism over a trade deal with China helped fuel a broad market rally. Caterpillar's stock has now recovered everything it has lost since investors started fearing a trade war on Feb. 16, when the U.S. threatened tariffs on steel and aluminum imports. Tariffs on steel would raise raw material costs for Caterpillar, while retaliatory measures could also hurt given China is Caterpillar's third-largest market, behind the U.S. and Canada, according to FactSet.
The Russell 2000 index of small-capitalization stocks rose on Monday, advancing to its latest in a series of records as investors cheered an easing of U.S.-China trade tensions. While smaller companies are seen as having less exposure to trade issues, due to their higher concentration of U.S. revenue exposure, the market segment has rallied consistently for weeks, easily outperforming its larger-cap peers. The Dow Jones Industrial Average rose 1.3% while the S&P 500 was up 0.9% and the Nasdaq Composite Index added 1%.
The Dow Jones Industrial Average gained 1.1%, putting it on track for its highest close since March 12. The S&P 500 gained 0.8%. The day's gains were broad based, with all 30 Dow components higher, along with all 11 primary S&P 500 sectors.
Yahoo Finance's Alexis Christoforous and Jared Blikre break down the latest market action.
CNBC's Bob Pisani takes a look at what's moving in early morning trading as U.S.-China trade tensions appear to ease and cyclical stocks move forward.