Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average finished higher Monday, surging 270 points after President Donald Trump said he believes China "very badly" wants to make a trade deal with the U.S.
- Amgen (AMGN) - Get Report rose after the company said it would acquire the global rights to Celgene's (CELG) - Get Report oral psoriasis treatment Otezla for $13.4 billion in cash. Amgen is Real Money's Stock of the Day.
- An Oklahoma judge ordered Johnson & Johnson (JNJ) - Get Report to pay $572 million for its role in distributing opioids tied to more than 6,000 deaths in the state, far less than the $17 billion sought.
Wall Street Overview
Stocks finished higher Monday after President Donald Trump said he believes China "very badly" wants to make a trade deal with the United States and that the U.S. was "very close to doing a deal with the EU."
The Dow Jones Industrial Average surged 270 points, or 1.05%, to 25,899. Earlier the index rose as much as 312 points. The S&P 500 rose 1.1% and Nasdaq climbed 1.32%.
Speaking alongside French President Emmanuel Macron at the conclusion of the G-7 summit in France, Trump said China wants to make a trade deal "very badly."
Stocks had started to lose some momentum in Monday's session but resumed their climb after Trump's latest remarks.
The comments followed Trump's earlier statements that China had contacted U.S. trade officials and said "let's get back to the table."
"China called last night our top trade people and said 'let's get back to the table'," Trump said, "so we will be getting back to the table and I think they want to do something. They have been hurt very badly but they understand this is the right thing to do and I have great respect for it."
However, the editor of the Global Times, Hu Xijin, tweeted that "based on what I know, Chinese and U.S. top negotiators didn't hold phone talks in recent days."
"The two sides have been keeping contact at technical level," he wrote, "it doesn't have significance that President Trump suggested. China didn't change its position. China won't cave to U.S. pressure."
Glenmede Trust Company's Investment Strategy Team said in a research note that, in aggregate, tariffs may introduce a nearly half percent headwind to U.S. GDP growth later this year.
"A half-percent headwind to economic growth here in the U.S. may not be the straw that breaks this expansion's back by itself, but there are a handful of second order effects from the trade war that are much harder to estimate," the note said. "The most important secondary effect might be the unpredictability of the rules of the game for doing international business, which could weigh on business sentiment and hold back incremental investment in future growth opportunities."
Trump said Monday he believes the U.S. will reach a new settlement with the European Union on the terms of trade without having to impose tariffs on European cars.
"They don't want tariffs, it's very simple," he said. "I think I'm going to make a deal with the EU without having to go that route."
The Dow's advance was in sharp contrast to the index's 623-point plummet on Friday when Trump "ordered" American companies to find alternatives to operating in China following China's threat to put new tariffs on American goods.
Shares of Amgen (AMGN) - Get Report were up 3.8% to $205.41 after the drug manufacturer said it would acquire the global rights to Celgene's (CELG) - Get Report oral psoriasis treatment Otezla for $13.4 billion in cash. Shares of Celegen rose 3.2% to $97. Amgen is Real Money's Stock of the Day.
After the close, an Oklahoma judge ruled against Johnson & Johnson (JNJ) - Get Report in a case involving the state's opioid epidemic that officials there say led to more than 6,000 deaths over nearly two decades. The company was ordered to pay $572 million in compensation, far below the $17 billion sought by the state. Johnson & Johnson shares rose $4.92, or 3.9%, to $132.75 in after-hours trading.
Kraft Heinz (KHC) - Get Report said that David Knopf, chief financial officer, will leave the food giant and return to private-equity firm 3G Capital. Knopf, who has been a partner at 3G since 2015, has been with Kraft Heinz for four years. Shares were up nearly 1% to $25.58.
In economic news, U.S. factories in July reported a surprisingly quick uptick in new orders for long-lasting machinery and equipment, but excluding transportation equipment, durable goods orders fell to their lowest in six months, a sign that manufacturers continue to suffer from lower business spending the trade war escalates.
Brent crude contracts were off 55 cents and selling at $58.25 per barrel, while West Texas Intermediate contracts, which are more tightly linked to U.S. gas prices, were 44 cents lower at $53.73 per barrel.
Amgen, Disney, and Johnson & Johnson are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells the stocks?
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