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Dow Jones extended its winning streak

Dow Jones

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Wall Street indexes ended the day with rises, continuing the green wave from the last week. This happened after the United States reached an agreement with Mexico on customs duties, which weakened some of the fears of a new trade war.

The blue-chip index Dow Jones Industrial Average grew by 77.74 points, or 0.4%, to 26,062.68 points. The broader S&P 500 recorded a 0.5% growth to 2,886.73 points, while the technology Nasdaq Composite rose by 1.1% to 7,823.17 points.

The CBOE Volatility Index, which measures the implied volatility of S&P 500 options, was down 2.21% to 15.94.

The Dow Jones Industrial Average has been on a tear over the past several sessions, with the current string of six straight gains putting blue chips on pace for the best point accumulation over a six-session stretch this year. The blue-chip index streak of six straight gains would represent the best point tally (1,340 points) over a series of six days since December 3, 2018, and the best percentage climb thus far, about 5.4%, since January 11.

This Sunday, President Donald Trump has announced that the proposed duties on imports of Mexican goods are canceled. The head of state has published on Twitter that he has “full confidence” that Mexico will deal with migration from Central America after the neighbouring countries have reached an agreement.

Meanwhile, investors closely follow developments in the US-China trade war. Earlier today, Trump commented that he believes China will make a deal with Washington, because “it will have to do so”.

Donald Trump and Chinese leader Xi Jinping are expected to meet at the G20 meeting later this month after both countries have imposed a mutual duties on their imports. Donald Trump commented that in case of failure on the meeting, he will impose duties on the remaining Chinese imports worth 300 billion USD.

Corporate stocks performance

The stocks of General Motors and Ford, the two companies that have a lot to lose from the trade war with Mexico due to their production there, today jumped 1.5% and 0.6%, respectively.

Salesforce.com acquired Tableau Software. The deal is estimated at 15.3 billion USD in shares and represents the largest acquisition in Salesforce.com’s history. Tableau’s stock price jumped by more than 33% today, while Salesforce fell by more than 5%.

Raytheon and United Technologies agreed to an all-stock merger that would create a combined company with 74 billion USD in annual sales. Shares of Raytheon rose 0.7%, while shares of United Technologies fell about 3%.

Amazon.com rallied 3.1% on Monday, moving above its 50-day line.

The White House acting budget chief is reportedly seeking to delay the restrictions on Chinese telecom giant Huawei, which would halt its ability to purchase US-made chips. Chipmakers Nvidia and Advanced Micro Devices gained 2% and 2.5% respectively on Monday following the news.

Shares in Walmart Inc rose to 52-week highs, adding 1.38%.

Shares of Merck & Co added 0.45% after the company said it would buy privately held pharmaceutical company Tilos Therapeutics in a deal that could be worth as much as 773 million USD.

Shares of Tilray Inc surged 11% after the Canada-based cannabis company announced an agreement that extends the lock-up, and provide for the orderly sale, of the 75 million shares, or 77% of the Tilray shares outstanding, held by its largest shareholder, Privateer Holdings.

The top performers on the S&P 500 were Macy’s Inc (+6.07%), Analog Devices Inc (+5.82%) and LyondellBasell Industries NV (+5.59%), while on the opposite side were Salesforce.com Inc (-5.26%), Incyte Corporation (-4.99%) and Cabot Oil & Gas Corporation (-4.95%).