Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average ended higher Monday after Donald Trump proclaimed a 90-day "truce" in the U.S. trade war with China.
- Nexstar Media Group Inc. (NXST) reached a deal to buy Tribune Media Co. (TRCO) for $6.4 billion, including debt. Tribune shares rose 12%.
- GlaxoSmithKline PLC (GSK) will buy ovarian cancer drug specialist Tesaro Inc. (TSRO) for around $5.1 billion in cash. Tesaro was up 59%.
Wall Street Overview
Stocks soared on Monday, Dec. 3, after Donald Trump proclaimed a 90-day "truce" in the still-simmering trade war between Washington and Beijing following the weekend G-20 Summit in Argentina.
A White House statement from the weekend said Trump will hold off on increasing tariffs on China-made goods for at least 90 days as the two sides negotiate a settlement on trade, technology transfer and intellectual property theft disputes that have eroded relations for must of the past year. The tariff increases had been slated to take effect Jan. 1. China's state-run newspaper said the agreement was an "important consensus," but made no reference to a 90-day time frame and didn't corroborate some of the specifics mentioned in the White House statement. China's Foreign Ministry, however, told reporters Monday that it had been instructed to examine the removal of all trade tariffs between the two countries.
My meeting in Argentina with President Xi of China was an extraordinary one. Relations with China have taken a BIG leap forward! Very good things will happen. We are dealing from great strength, but China likewise has much to gain if and when a deal is completed. Level the field!— Donald J. Trump (@realDonaldTrump) December 3, 2018
The Dow Jones Industrial Average rose 288 points, or 1.1%, to 25,826 -- at its high for the day the Dow gained 442 points. The S&P 500 ended up 1.1%, and the Nasdaq jumped 1.5%. Leading the Dow higher were UnitedHealth Group (UNH) , Boeing Co. (BA) and Caterpillar Inc. (CAT) , which rose 2.4% after Bank of America Merrill Lynch upgraded the construction and farm equipment maker to buy from neutral following the trade cease-fire.
Apple Inc. (AAPL) rose3.5% on Monday as investors bet that a truce in the U.S.-China trade war will eliminate a key tariff risk that had been lingering over the world's most valuable tech company.
Ford Motor C. (F) rose 2% on Monday despite reporting a sales decline of 6.9% in November. U.S. automakers were higher Monday after Trump said China had agreed to lower tariffs on cars imported into the world's biggest market.
The combined company would be the largest local U.S. TV station operator. Reuters reported the merger could be announced on Monday.
Nexstar outbid private-equity firm Apollo Global Management LLC (APO) with an all-cash offer that values Tribune at around $46.50 a share. Tribune closed Friday, Nov. 30, at $40.26. Tribune Media shares ended up 11.8% at $45.01. Nexstar gained 5.6%.
GlaxoSmithKline PLC (GSK) said Monday it would buy ovarian cancer drug specialists Tesaro Inc. (TSRO) for around $5.1 billion in cash, but cautioned that it wouldn't add to the pharma giant's bottom line until 2022.
GlaxoSmithKline said it will pay $75 a share for the Waltham, Mass.-based Tesaro, a 110% premium to Tesaro's 30-day moving average. Glaxo said the deal will hit its near-term earnings by a "mid to high" single digit percentage, but will start to add to its bottom line by 2022.
Tesaro jumped 58.5% on Monday to $73.53. GlaxoSmithKline shares fell 7.8%.
Qualcomm Inc. (QCOM) told Reuters its collapsed $44 billion acquisition of NXP Semiconductors N.V. (NXPI) won't be revived, rejecting a suggestion by the White House that it could be completed.
Following the weekend talks between Donald Trump and Chinese President Xi Jinping, the White House said that China was "open to approving the previously unapproved" deal for Qualcomm to acquire NXP "should it again be presented." Qualcomm abandoned the deal to buy NXP in July after failing to secure Chinese regulatory approval.
Qualcomm said in an email to Reuters that there was no prospect for the acquisition to be revived.