Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average traded higher Monday following President Donald Trump's "indefinite" suspension of tariffs on Mexican goods that were expected to go into effect Monday.
- Raytheon (RTN - Get Report) and United Technologies (UTX - Get Report) will merge in a $120 billion deal. United Technologies is Real Money's Stock of the Day.
- Salesforce (CRM - Get Report) reached an agreement to buy Tableau Software (DATA) in a deal that values the data analytics company at more than $15.7 billion in stock and debt.
Wall Street Overview
Stocks finished in positive territory Monday following President Donald Trump's "indefinite" suspension of tariffs planned on goods imported from Mexico and after the announcement of mega-mergers in the defense and tech sectors.
"I am pleased to inform you that The United States of America has reached a signed agreement with Mexico," Trump said on his verified Twitter account. "The Tariffs scheduled to be implemented by the U.S. on Monday, against Mexico, are hereby indefinitely suspended," he said.
The Dow Jones Industrial Average, which rose as much as 226 points, ended up 79 points, or 0.30%, to 26,063, the S&P 500 rose 0.47%, and the Nasdaq advanced 1.05%.
"Even though Mexican tariffs are now off the table at this point, risks to the economy lie in further trade escalation," said Jason Pride, chief investment officer of Private Wealth for Glenmede, "as the impact of tariffs on the rest of Chinese goods and new duties on European autos would likely have a larger effect on economic growth."
Meanwhile, Trump said Monday on CNBC that he believes China will make a trade deal with the U.S. "because they're going to have to."
"Right now, China is getting absolutely decimated by companies that are leaving China, going to other countries, including our own, because they don't want to pay the tariffs," Trump said.
Trump and Chinese leader Xi Jinping are set to meet at the G-20 Summit later this month and Trump said additional tariffs on Chinese goods will be levied if his counterpart does not attend the meeting.
In economic news, Goldman Sachs (GS - Get Report) analysts aren't expecting the Federal Reserve to lower interest rates before the end of the year, according to a note published Monday, even as investors price in a 60% chance of at least three cuts from the Federal Open Markets Committee.
Raytheon (RTN - Get Report) and United Technologies (UTX - Get Report) announced an all-stock merger to form an aerospace and defense giant that will be known as Raytheon Technologies Corp. and is expected to have $74 billion in pro forma 2019 sales. Shares of United Technologies, which is Real Money's Stock of the Day, slipped 3.1% to to $128.01, while Raytheon rose slightly to $187.19.
Salesforce (CRM - Get Report) reached an agreement to buy Tableau Software (DATA) in a deal that values the data analytics company at more than $15.7 billion in stock and debt. Shares of Salesforce fell 5.3% to $152.79, while Tableau Software soared 33.7% to $167.41.
Shares of Canadian cannabis producer Tilray (TLRY) soared 11.2% to $44.14 to after announcing a deal with its majority shareholder, Privateer Holdings, to gradually sell the fund's remaining stake in Tilray over the next two years.