Here Are 3 Hot Things to Know About Stocks Right Now
- The S&P 500
and Nasdaq established intraday and closing records on Monday after the U.S. and Mexico reached a tentative trade deal.
- The Dow Jones Industrial Average
rose sharply after closing Friday at its highest level since early February.
- Tesla Inc. (TSLA) fell 1.6% after the electric vehicle company said it wouldn't be going private.
Wall Street Overview
Stocks closed higher on Monday Aug. 27, after the U.S. and Mexico reached a tentative trade deal.
The agreement would replace NAFTA, the trade pact between the U.S., Mexico and Canada. The deal will be called the United States-Mexico Trade agreement, according to President Trump.
The Dow Jones Industrial Average
Monday's gains built on Friday's session which saw both the S&P 500
Tesla Inc. (TSLA) shares fell 1.6% on Monday after the electric vehicle company led by CEO Elon Musk said Friday it wouldn't be going private.
"Over the past several weeks, we put in place a process led by a Special Committee of the Board to evaluate a proposal Elon was considering to take Tesla private. Yesterday, we held a Board meeting, during which Elon reported on the work he and his advisors have been doing in connection with this effort," said a post on the company's website. "Elon communicated to the Board that after having done this work and considered all factors, he believes the better path is to no longer pursue a transaction for taking Tesla private. After discussing this, we dissolved the Special Committee. The Board and the entire company remain focused on ensuring Tesla's operational success, and we fully support Elon as he continues to lead the company moving forward."
Musk wrote: "I knew the process of going private would be challenging, but it's clear that it would be even more time-consuming and distracting than initially anticipated. This is a problem because we absolutely must stay focused on ramping Model 3 and becoming profitable."
Musk sent Twitter ablaze on Aug. 7 by tweeting that funding for a deal to take Tesla private at $420 had been secured. Tesla closed Friday at $322.82.
Netflix Inc. (NFLX) reportedly has been developing a system that would direct new users to sign up for the streaming company's subscriptions outside of its apps that run on Apple Inc. (AAPL) devices, The Wall Street Journal reported. The move would spare Netflix the need to pay the commission Apple has charged on such transactions over its devices, which are typically 30%, according to the Journal. Netflix rose 1.7%.
Arconic Inc. (ARNC) , the aluminum products maker, slipped 0.8% on Monday after jumping on Friday following a Reuters report that said the company had expanded the scope of its potential sale to include the whole company just weeks after it put its building and construction unit up for sale.
Pfizer Inc. (PFE) fell 2% on Monday after the pharmaceutical giant reported positive Phase 3 results for its drug, tafamidis, which reduced the risk of death for patients with a rare and fatal heart disease by around 30%.