Nike hits 52 week high
U.S. stocks closed higher for a third session on Monday, 20 August 2018 as a pair of billion-dollar deals reaffirmed confidence that the U.S. economy continues its steady expansion. Optimism that progress would be made toward resolving contentious trade disputes between the U.S. and China also bolstered sentiment.
The Dow Jones Industrial Average added 89.37 points, or 0.4%, to finish at 25,758.6. The S&P 500 index climbed 6.92 points, or 0.2%, to 2,857.05, led by materials and energy sectors. The Nasdaq Composite Index reversed earlier losses to advance 4.68 points to 7,821.01.
Optimism ahead of resumed trade talks between the U.S. and China, which are set to kick off on Wednesday, helped fuel the bullish bias on Wall Street and helped push stocks higher across the globe. China's Shanghai Composite rallied 1.1% on Monday, rebounding from a two-year low.
Eight of eleven S&P sectors finished Monday in the green, with consumer discretionary, industrials, energy and materials being the top performers. However, the top-weighted information technology sector underperformed, keeping the S&P 500 in check.
Within the tech space, giants like Apple, Microsoft and Facebook lost between 0.7% and 1.0%. Chipmakers also trailed the broader market, with Dow component Intel sliding 1.3%.
Nile hit a 52 week high on Monday gaining 3.1%.
On the M&A front, SodaStream spiked 9.4% after the Israeli company, which is best known for its at-home carbonated drink maker, agreed to be acquired by beverage and snack giant PepsiCo for $144 per share, in cash, or roughly $3.2 billion.
Away from equities, U.S. Treasuries rallied on Monday, somewhat unusual considering the uptick in equities pushing yields lower across the curve; the benchmark 10-yr yield slid five basis points to 2.82%.
Investors are also paying close attention to troubled regions like Turkey, where the lira and stock market have tumbled amid high inflation, political instability, and debt, and Italy, which is struggling under a debt burden of its own.
Crude oil futures on Monday, 20 August 2018, marked a third consecutive session gain, a day ahead of the expiration of the September contracts, as U.S. sanctions on Iran contributed to concerns over tighter global oil supplies. Emerging-market and Chinese demand worries had rippled through the market last week, sending oil prices down for a third week in a row.
West Texas Intermediate crude for September delivery on the New York Mercantile Exchange rose 52 cents, or 0.8%, to settle at $66.43 a barrel following gains over the past two sessions. The contract, which expires at the end of Tuesday's session, logged a 2.5% decline last week.
As for economic data, investors didn't receive any notable reports on Monday, and Tuesday's calendar is also blank.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
