Stocks spike to record highs after China budges on key US trade demand
It was a busy Merger Monday
FOX Business' David Asman and Jackie DeAngelis, Fortune Magazine's senior editor-at-large Adam Lashinsky, Kaltbaum Capital Management's president Gary Kaltbaum, Fox News economic analyst Jonas Max Ferris and China analyst Gordon Chang discuss why America should show support for Hong Kong protesters and pass a U.S.-China trade deal. Chang says an either, or solution won't work.
All three of the major averages closed at record highs Monday after China issued a document to “effectively curb” violations of intellectual property rights such as trademarks and copyrights.
The S&P 500 and Nasdaq set new intrday peaks while the Dow Jones Industrial Average traded within 25 points of its own high.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SP500 | S&P 500 | 5949.17 | -36.21 | -0.60% |
| I:DJI | DOW JONES AVERAGES | 43750.86 | -207.33 | -0.47% |
| I:COMP | NASDAQ COMPOSITE INDEX | 19107.65077 | -123.07 | -0.64% |
President Trump touted the strong market in a tweet on Monday.
"Another new Stock Market Record. Enjoy!" he wrote.
Trade sensitive Caterpillar gained as did chipmakers AMD and Micron Technology, which have heavy exposure to China. Boeing was also higher, shaking off the departure of its top communications officer.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BA | THE BOEING CO. | 138.14 | -1.83 | -1.31% |
| CAT | CATERPILLAR INC. | 387.36 | +0.29 | +0.07% |
| AMD | ADVANCED MICRO DEVICES INC. | 138.84 | -0.46 | -0.33% |
| MU | MICRON TECHNOLOGY INC. | 99.18 | -0.74 | -0.74% |
It was a busy Monday morning on the deal front as Charles Schwab announced it agreed to buy TD Ameritrade in an all-stock deal worth $26 billion. The transaction was first reported last week by FOX Business' Maria Bartiromo.
European luxury goods maker LVMH is buying Tiffany for $16.2 billion, or $135 a share in cash. The French company said the deal will strengthen its presence in the U.S.
EBay reached an agreement to sell its online ticket marketplace StubHub to the Geneva, Switzerland-based Viagogo Entertainment for $4.05 billion.
Meanwhile, HP rejected Xerox's $33.5 billion hostile takeover attempt, saying it "significantly undervalues" its business. Xerox has vowed to take the offer to HP's shareholders.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMTD | AMTD IDEA | 1.13 | -0.05 | -4.24% |
| SCHW | THE CHARLES SCHWAB CORP. | 80.19 | +1.94 | +2.48% |
| EBAY | EBAY INC. | 62.30 | +0.41 | +0.66% |
| HP | HELMERICH & PAYNE INC. | 33.94 | -2.30 | -6.35% |
| XRX | XEROX HOLDINGS CORP. | 8.39 | +0.12 | +1.45% |
Uber shares were under pressure after the company lost its license to operate in London. The ride-sharing company will continue to operate in the city while it appeals the decision.
Elsewhere, Tesla rallied after CEO Elon Musk tweeted the electric-car maker has received 200,000 orders for its futuristic pickup truck Cybertruck.
Beyond Meat gained after Reuters reported rival Impossible Foods is in talks with investors about a private fundraising round that could more than double its valuation.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| UBER | UBER TECHNOLOGIES INC. | 71.44 | +0.28 | +0.39% |
Commodities were mixed, with gold down 0.6 percent at $1,462 an ounce and West Texas Intermediate crude oil up 0.4 percent at $58 a barrel.
U.S. Treasurys were higher, pushing the yield on the 10-year note down 1 basis point to 1.764 percent.
Investors were watching the situation in Hong Kong, where pro-democracy candidates won a majority of seats in a local district council election Sunday. After nearly six months of often violent protests, it is yet another challenge for Chief Executive Carrie Lam’s government.
PRO-DEMOCRACY CANDIDATES ADVANCE IN KEY HONG KONG ELECTIONS
“The result might not be market-friendly as it sets to challenge Carrie Lam’s leadership and bring up political uncertainties. But it could also mark a turning point in stopping the violent clashes,” said Margaret Yang, market analyst at CMC Markets in Singapore.
Hong Kong's Hang Seng rallied 1.5 percent while China's Shanghai Composite added 0.7 percent.
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In Europe, Britain's FTSE was up 1 percent to pace the advance.
The Associated Press contributed to this report.