Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average, the S&P 500 and Nasdaq all jumped on Tuesday, rising 1.79%, 1.67% and 2.07%, respectively.
- Shares of Facebook Inc. (FB) - Get Report rose 4.5% as CEO Mark Zuckerberg appeared before Senate committees.
- Shares of other leading tech companies also jumped. Apple (AAPL) - Get Report gained 1.8%, Alphabet (GOOGL) - Get Report jumped 1.6% and Microsoft (MSFT) - Get Report rose 2.3%.
Wall Street Overview
Stocks surged on Tuesday, April 10, after Chinese President Xi Jinping pledged to open more sectors to foreign companies but also warned against a "Cold War mentality" amid a trade dispute with the U.S.
The Dow Jones Industrial Average jumped 428 points, or 1.79%. The S&P 500 rose 1.67% and the Nasdaq rose 2.07%.
In a speech Tuesday at the Boao Forum for Asia, an event hosted by the Chinese government, Xi spoke of increasing imports, lowering foreign-ownership limits on manufacturing and expanding protection to intellectual property.
Xi said the Chinese government was seeking to "broaden market access" for financial services companies, and also pledged to reduce the limits on foreign investment in the automotive, shipbuilding and aviation sectors.
Xi pledged to significantly lower tariffs on imported vehicles, which came hours after Donald Trump on Monday tweeted about China's 25% tariff on cars from the U.S.
- 5 Key Takeaways From China's President Xi Jinping's Speech to Boao Forum
In U.S. economic data, the Producer Price Index for March rose 0.3%, ahead of estimates of up 0.1%. Core PPI, which excludes food and energy prices, also rose 0.3%. Wholesale inflation on an annualized basis rose to 2.7%.
Facebook CEO Mark Zuckerberg addressed Congress about the Cambridge Analytica scandal on Tuesday, the first of two hearings in front of congressional committees.
Zuckerberg appeared in front of the Senate Judiciary Committee and the Senate Commerce, Science, and Transportation Committee on Tuesday afternoon He will testify before the House Energy and Commerce Committee on Wednesday, April 11, at 10 a.m.
Zuckerberg said in his remarks: "It's clear now that we didn't do enough to prevent these tools from being used for harm as well. That goes for fake news, foreign interference in elections, and hate speech, as well as developers and data privacy. We didn't take a broad enough view of our responsibility, and that was a big mistake. It was my mistake, and I'm sorry. I started Facebook, I run it, and I'm responsible for what happens here."
Facebook shares closed up 4.5%.
The Consumer Financial Protection Bureau is seeking a record fine against Wells Fargo & Co. (WFC) - Get Report that could exceed several hundred million dollars for auto insurance and mortgage lending abuses, Reuters reported, citing three sources with knowledge of the plans. Wells Fargo shares rose 0.69%.
Shares of VeriFone Systems Inc. (PAY) rose 51% after the payments technology company agreed to be acquired by an investor group led by private-equity firm Francisco Partners for about $3.4 billion including debt. Action Alerts PLUS holding Nvidia Corp. (NVDA) - Get Report gained 5.8% on Tuesday after Morgan Stanley analyst Joseph Moore upgraded the stock to "overweight" from "equal weight" and kept his $258 price target.
Francisco Partners will pay $23.04 in cash per VeriFone share, a premium of about 54% over VeriFone's closing price on Monday of $15. VeriFone will become a private company after the deal is completed.
Auto parts maker Tenneco Inc. (TEN) - Get Report announced plans to acquire aftermarket and powertrain components producer Federal-Mogul LLC from Icahn Enterprises LP for $2.44 billion in cash and stock, then split into two publicly traded companies through a tax-free spinoff. Tenneco was up 4%.
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