The main indexes of the New York Stock Exchange ended today’s trading session mixed before the meeting between US President Donald Trump and Chinese leader Xi Jinping at the G20 summit later this week.
The blue-chip index Dow Jones Industrial Average, which tracks stock trading of the 30 largest US public companies, advanced by 0.10% to 26,745.41 points. The broader S&P 500 declined by 0.11% to 2,947.28 points, while the technology Nasdaq Composite posted an increase of 0.26% to 8,010.61 points.
Six of the 11 major sectors in the S&P 500 lost ground, with the biggest percentage drop for energy stocks as crude prices fell.
The CBOE Volatility Index, which measures the implied volatility of S&P 500 options, was down 0.91% to 15.26.
Investors have focused their attention on the upcoming talks between Donald Trump and Xi Jinping during the G20 summit, hoping to reach an agreement and end the trade war between the world’s two most powerful economies.
Earlier in the day, Chinese Deputy Trade Minister Wang Shouwen said China and the United States should make compromises in trade talks. Speaking at a briefing on the G20 summit, Wang said that talks between the two sides’ trade teams were already in progress but did not give details of the case. The principles of China are clear, the minister said – mutual respect, equality, and mutual benefit, with the two countries meeting in the middle.
Trade optimism helped spark a massive rally this month. The major indexes were up at least 7% each in June. Those gains have erased a massive sell-off from May, which was fueled by China and the US hiking tariffs on each other’s products. The S&P 500 hit a record on Friday, reaching a high of 2,964.15 points.
Equities have also been boosted by the prospects of easier monetary policy from the Federal Reserve. Last week, the Fed said it would “act as appropriate” to keep the current economic expansion going. This led traders to price in a 100% probability of rate cut next month.
In the bond markets, yields on 10-year and 30-year US Treasuries fell to 2.016% and 2.547%, respectively.
Corporate stocks performance
The stocks of Eldorado Resorts declined by 10.64% amid the deal reached for acquisition of Caesars Entertainment for a total of 8.6 billion USD in cash and stock. The deal will create the largest casino corporation in the US.
FedEx Corp apologized for mistakenly returning a Huawei phone to its sender, after misrouting packages from the Chinese tech firm last month. The move provoked the ire of Chinese authorities and raised the prospect of FedEx being added to China’s “unreliable entities” list. The package delivery firm’s shares slid by 2.7%.
Bristol-Myers Squibb shares fell more than 7% after the company announced its 74 billion USD merger with Celgene would be delayed until the end of 2019 or early next year.
Shares in Merck & Company Inc rose to 5-year highs, adding 1.11%.
Meanwhile, the stocks of Home Depot declined by 1.93% after the CEO Craig Menear said the company aims to minimize the impact that potential tariffs will have on prices by cutting costs elsewhere along its supply chain.
The shares of Goldman Sachs Group rose by 0.8%, contributing about 10 points to the price-weighted Dow’s gains, while shares of aeronautics and defense contractor Boeing added about 15 points. A dollar move in any one of the 30 blue-chip components of the Dow equates to a roughly 6.8-point swing.
Shares of Palatin Technologies shed 9.7% even after the Food and Drug Administration granted marketing approval for a treatment for hypoactive sexual desire disorder, triggering a 60 million USD milestone payment.
Dow member United Technologies rose 1.1% after an analyst at Cowen upgraded the stock to outperform from market perform. Deere shares, meanwhile, climbed 1.6% after being upgraded to buy from neutral at UBS.
The top performers on the S&P 500 were Electronic Arts Inc (+3.85%), Activision Blizzard Inc (+2.70%) and Dow Inc (+2.56%), while on the flipside were Bristol-Myers Squibb Company (-7.40%), Pacific Gas & Electric Co (-5.71%) and Celgene Corporation (-5.50%).