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Close Update: Wall Street Grinds Higher Amid Progress For US/China Trade Deal

Led by gains in trade-sensitive technology and industrial stocks, Wall Street's major averages closed higher as progress towards a US/China trade deal drove the Nasdaq Composite into the plus column for the tenth time in eleven days, and the S&P 500 briefly above 2,800.

President Donald Trump's tweet last night regarding a delay in further trade sanctions against China fueled a risk rally in Chinese stocks that permeated European and US bourses. Although the major indices drifted off their session highs despite more jawboning efforts by the president, the Dow Jones Industrial Average closed above the 26,000 for the first time this year.

Economic data had little impact with even a greater-than-expected deterioration in the Chicago Fed national activity index, and third consecutive drop in wholesale sales failing to influence Monday's positive price action.

The Chicago Fed index fell to negative 0.43 in January from a downward revised 0.05 (previously reported as 0.27). Wholesale inventories rose 1.1% while sales were down for a third consecutive month, The Dallas Fed manufacturing index advanced to 13.1 in February from 1.0 the month prior.

In equities, Kraft Heinz ( KHC ) shares fell to another all-time low after Warren Buffett confessed that he paid too much for the company, but remains committed to his investment.

General Electric ( GE ) pierced its 200-day moving average for the first time in more than two years following its announcement to sell its biopharma business to Danaher for $21 billion.

In other acquisition news, Barrick Gold ( GOLD ) offered to buy Newmont Mining ( NEM ) for $18 billion in stock.

Tuesday's headline event is Fed Chairman Jerome Powell's two-day semi-annual testimony to Congress beginning with the Senate Committee on Banking. Housing data is also on tomorrow's agenda with housing starts and permits, the Case Shiller home price index and the FHFA house price index, as well as consumer confidence and the Richmond Fed manufacturing index.

US MARKETS

Dow Jones Industrial Average was up 60.14 points (+0.23%)

S&P 500 was up 3.44 points (+0.12%)

Nasdaq Composite Index was up 26.92 points (+0.36%)

GLOBAL SENTIMENT

FTSE 100 was up 0.07%

Nikkei 225 was up 0.48%

Hang Seng Index was up 0.50%

Shanghai China Composite Index was up 5.60%

UPSIDE MOVERS

(+) ONCE (+120.09%) To be acquired by Roche Holdings for $114.50 per share

(+) CMTA (+74.66%) To be acquired by Ipsen for approximately $1.3 billion

(+) FENG (+31.94%) Will sell 32% stake in Particle for $448 million, made strategic investment in Tadu

(+) TTNP (+30.50%) Announce a partnership with Alliance Rx Walgreen's Prime ( WBA ) to expand access to Probuphine

DOWNSIDE MOVERS:

(-) WIN (-46.89%) Files for bankruptcy after judge's ruling

(-) SGYP (-17.21%) Was given approval by bankruptcy court to draw down remainder of $155 million bankruptcy financing package

(-) MLNT (-9.02%) Closed initial $75 million Vatera convertible loan funding, named John Johnson as CEO

(-) CRON (-7.62%) Initiated at Jefferies with underperform rating

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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