Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average sank Monday after initially rising on a report that said the U.S. and China were close to finalizing a trade deal.
- The Dow ended 0.1% lower last week, ending a winning streak of nine weeks. The Nasdaq has finished higher for 10 straight weeks.
- Tesla (TSLA - Get Report) CEO Elon Musk said the electric carmaker will unveil the Model Y sport utility vehicle on March 14.
Wall Street Overview
Stocks fell on Monday, March 4, as the momentum gained from a report that said China and the U.S. were in the final stages of completing a trade deal faded.
The Dow Jones Industrial Average fell 207 points, or 0.8%, to 25,820, the S&P 500 declined 0.39% and the Nasdaq was down 0.23%. Stocks had begun Monday's session significantly in the green but some analysts believe the deal already was priced in. At its high Monday, the Dow had risen 129 points.
The Wall Street Journal reported that Beijing offered to lower tariffs and other restrictions on American farm, chemical, auto and other products, with the U.S. considering removing most, if not all, sanctions levied against Chinese products since last year.
Hurdles do remain, but the talks have progressed to the extent that a formal agreement could be reached at a summit between Donald Trump and Chinese President Xi Jinping, probably around March 27, after Xi finishes a trip to Italy and France, individuals with knowledge of the plans told the Journal.
"The key question is -- will all tariffs will be removed instantly, or will they be gradually dialed back?," asked FXTM analyst Lukman Otunuga. "While the renewed risk appetite is seen boosting European and U.S. stocks, investors should consider how much upside is left, given that markets have been actively pricing in the possible resolution to the trade saga."
A week ago, Trump said the March 1 deadline for raising tariffs on Chinese imports would be held off because of progress in negotiations.
"Model Y, being an SUV, is about 10 percent bigger than Model 3, so will cost about 10 percent more & have slightly less range for same battery," Musk said in a tweet.
Musk last week said a move to offer a cut-down version of its flagship Model 3 sedan would likely result in a first-quarter loss, only weeks after telling investors he would turn the carmaker into the black.
Tesla shares fell 3.2% on Monday.
The board of Newmont Mining (NEM - Get Report) rejected Barrick Gold's (GOLD - Get Report) hostile takeover bid, saying that Barrick's proposal "does not constitute, and would not reasonably be expected to constitute," a proposal superior to Newmont's merger agreement with Goldcorp (GG) .
Newmont shares rose 1.9%.
The total transaction value is about $877 million.
Shares of Nightstar Therapeutics jumped 66.1% to $25.18 on Monday.
Analysts surveyed by FactSet expect Salesforce, the cloud software company, to earn 55 cents a share in the fourth quarter on sales of $3.56 billion.