Dow Sets Closing High; Major Indexes at Records as Wall Street OKs Trade Pact

Stocks rose Monday as Wall Street gaves cautious approval to a phase-one trade agreement between the U.S. and China.
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  1. Stocks rose to record closes Monday  as Wall Street gave cautious approval to a phase-one trade agreement between the U.S. and China.
  2. Boeing slumped Monday following a report that said the plane maker was deciding whether to pause or reduce production of its 737 MAX jets. Boeing is Real Money's Stock of the Day.
  3. DuPont rose after the industrial company agreed to a $26.2 billion merger of its nutrition unit with International Flavors & Fragrances.

Stocks jumped to record closing highs  Monday as Wall Street gave cautious approval to a phase-one trade agreement between the U.S. and China.

The Dow Jones Industrial Average rose 100.51 points, or 0.36%, to 28,235.62, the S&P 500 gained 0.7% and the tech-heavy Nasdaq was up 0.9%. The Dow, S&P 500 and Nasdaq hit all-time intraday highs in trading Monday.

U.S. Trade Representative Robert Lighthizer told CBS's "Face the Nation" that the trade agreement, reached after more than two years of negotiations between the world's two biggest economies, was "totally done" and would include the suspension of certain tariffs and the rollback of others in exchange for China's agreement to buy around $200 billion worth of American-made goods, including agricultural, energy and manufacturing products, over the next two years.

China also was said to agree to crack down on key U.S. issues such as intellectual property theft and forced technology transfers as well as work to deepen access to its financial markets.

"Ultimately, whether this whole agreement works is going to be determined by who's making the decisions in China, not in the United States," Lighthizer said. "If the hard-liners are making the decisions we're going to get one outcome, if the reformers are making the decisions - which is what we hope - then we're going to get another outcome."

Tariffs that were set to go into effect on Sunday and which would have applied to $160 billion in China-made goods imported into the United States were suspended under terms of the agreement.

Boeing (BA) - Get Report slumped Monday following a report that said the plane maker was deciding whether to pause or reduce production of its 737 MAX jets.

The company could disclose a decision as soon as Monday, according to The Wall Street Journal, which cited people familiar with the matter.

The MAX has been grounded since March after deadly crashes in Indonesia and Ethiopia killed a total of 346 people.

Boeing is Real Money's Stock of the Day. It was the leading laggard on the Dow Jones Industrial Average.

DuPont (DD) - Get Report rose after the industrial company agreed to a $26.2 billion merger of its nutrition unit with International Flavors & Fragrances (IFF) - Get Report.

DuPont will use what's known as a Reverse Morris Trust arrangement to complete the deal, spinning off and merging its Nutrition and Biosciences with IFF in a deal that both reduces it overall tax liability and creates a company worth around $45.4 billion. DuPont will own 55.4% of the combined company and IFF will own the remaining 44.6% share. DuPont also will receive a $7.3 billion cash payment when the deal is closed next year.

Nvidia (NVDA) - Get Report jumped Monday after analysts at Jefferies offered an upbeat assessment of the chipmaker's business prospects and "dominant" position when it comes to exploiting opportunities created by the proliferation in artificial intelligence.

Walt Disney's (DIS) - Get Report “Frozen 2” dropped to second place at the box office over the weekend -- losing out to “Jumanji: The Next Level” -- but the animated film crossed $1 billion in receipts globally to become the sixth movie from the studio to surpass $1 billion in 2019.

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

The Empire State Manufacturing Index rose 0.6 points in December to 3.5, below economists' forecast of 4.0. The new-orders index fell to 2.6 in December and shipments rose 3.1 points to 11.9.