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Here Are 3 Hot Things to Know About Stocks Right Now

  • The S&P 500 hit a record close Monday after President Donald Trump saying he'll ease export restrictions on U.S. companies doing business with China's Huawei Technologies.
  • Chipmaker Nvidia (NVDA)  rose following the easing of export restrictions on Huawei. Nvidia is Real Money's Stock of the Day.
  • Shares of Genesee & Wyoming (GWR)  rose after Brookfield Asset Management agreed to acquire the U.S. freight railroad owner and operator for $8.4 billion, including debt.

Wall Street Overview

The S&P 500 hit a record close Monday after President Donald Trump said he would ease export restrictions on U.S. companies doing business with China's Huawei Technologies following his weekend meeting with China's Xi Jinping at the G-20 summit in Osaka, Japan.

The S&P 500 ended up 0.77% at a record close of 2,964.33; it reached an intraday record high of 2,977.93 earlier in the session. The Dow Jones Industrial Average, which rose as much as 291 points early in the session, ended up 117 points, or 0.44%, to 26,717. The tech-heavy Nasdaq advanced 1.06%.

Among the chipmakers advancing were Advanced Micro Devices (AMD) , Micron Technology (MU) , Skyworks Solutions (SWKS)  and Nvidia (NVDA) , which is Real Money's Stock of the Day.

Wynn Resorts (WYNN) was the leading both the S&P 500 and the Nasdaq, with shares up 5.9% to $131.25.  Gaming revenue in Macau in June rose 5.9%, higher than expectations

Trump said Huawei, the world's biggest maker of both smartphones and 5G network equipment, would be able to purchase products from U.S. companies "which will not impact our national security." Larry Kudlow, the chairman of the National Economic Council, called the change in tactic a "loosening up" of restrictions but not a "general amnesty." 

No time limits were placed on any agreement, however, and no schedule for new talks was released by officials from either Washington or Beijing.

The market saw a strong start to the second half of the year, following Friday's close, when the Dow posted its best June gain since 1938 and the S&P 500 capped its best first half in 20 years.

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"Stocks are welcoming a U.S.-China trade truce at the G-20 as it takes worst-case economic tail risks off the table," said Alec Young, managing director of global markets research for the FTSE Russell. "The biggest driver of investor relief is that the much feared 25% tariff on an additional $300 billion in Chinese imports has been put on hold as trade negotiations resume. Had those tariffs gone into place, they had the potential to do significant damage to second-half consensus economic and earnings growth prospects." 

In addition, Young said, "the U.S. administration's decision to allow U.S. firms to continue to trade with China's Huawei has also boosted tech sector sentiment, by far the market's largest at a 22% cap weight."

In economic news, the seasonally adjusted IHS Markit final U.S. Manufacturing Purchasing Managers' Index posted a 50.6 in June, broadly in line with 50.5 in May, to signal a marginal improvement in the U.S manufacturing sector.

"U.S. manufacturers reported business conditions to have remained the toughest for nearly a decade in June," said Chris Williamson, chief business economist at IHS Markit. "The past two months have seen the lowest readings since the height of the global financial crisis in 2009."

In addition, the Institute for Supply Management Manufacturing Index slowed 0.4 to 51.7, beating the consensus forecasts of 51.1.  

The Commerce Department, meanwhile, said Monday that construction spending in may declined 0.8%, the biggest drop since last November. Economists were looking for a 0.1% spending increase in May.

Shares of Genesee & Wyoming (GWR) climbed 8.8% to $108.84 after Brookfield Asset Management agreed to acquire the U.S. freight railroad owner and operator for $8.4 billion, including debt.

Applied Materials (AMAT) shares rose 1.7% to $45.68 after the company said it will buy Kokusai Electric Corporation from private equity firm KKR in a deal that values the Japan-based semiconductor device maker at around $2.2 billion.

Federal prosecutors have subpoenaed records from Boeing relating to the production of the 787 Dreamliner in South Carolina, the Seattle Times reported, citing two sources familiar with the investigation. The subpoena was issued by the Department of Justice and relates to what the paper called "allegations of shoddy work" at the Dreamliner production plant in North Charleston, S.C. Boeing declined to comment Shares were down 2.5% to $355.09.

Nvidia is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells NVDA? Learn more now.

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