New York (New York) – June 10th 2019 16:56
Wall Street ended strongly in the green on Monday, the Dow Jones posting its sixth straight rise, thanks to a lull of tensions on the trade front after the abandonment of US taxes against Mexico.
According to the final results at closing, its flagship index, the Dow Jones Industrial Average, rose 0.30% to 26,062.68 points.
The Nasdaq index, with strong technological color, rose by 1.05% to 7,823.17 points.
The broad S & P 500 index gained 0.47% to 2,886.73 points.
After several days of difficult negotiations, the United States and Mexico snatched an agreement on immigration Friday in Washington that helped lift the threat of tariffs on Mexican products brandished by Donald Trump and potentially damaging to the two neighboring economies.
“This is good news that has appeased the fear of a proliferation of punitive tariffs,” commented Peter Cardillo of Spartan Capital Securities.
Questions remain, however, about the scope of the text, as the US press has pointed out. But in the meantime, this news has helped the market “to continue its rebound from the end of last week,” said Patrick O’Hare of Briefing.
Beyond Meat soars
Highly sensitive to news related to the health of international trade, technology stocks rose sharply on Monday: Amazon took 3.14%, Alphabet (parent company of Google) 1.35%, and Apple 1.28%.
Investors also followed, just before the opening of the talks, a long speech by the American president on the American television channel CNBC, during which he has as usual reviewed a great many current topics.
Donald Trump in particular insisted that a tete-a-tete with his Chinese counterpart Xi Jinping was well planned at the end of June in Osaka on the sidelines of the G20, a meeting on which Beijing raises doubt.
“Investors are now hoping that after Mexico, an agreement will be reached with China,” said Peter Cardillo.
The occupier of the White House also fiercely criticized the US Central Bank during its morning intervention, saying it had made a “big mistake” by raising interest rates too quickly.
Rate hikes raise the cost of credit and slow down economic expansion – two things unacceptable to Donald Trump.
In the bond market, the 10-year interest rate rose sharply, to 2.145% around 20.45 GMT against 2.081% Friday at the close.
Among the values of the day, Microsoft gained 0.91%. The group presented on Sunday at the annual grand mass of the video game industry in Los Angeles a sketch of the next version of its Xbox console, which the US group plans to launch in late 2020. Called “Project Scarlett “, the console is supposed to succeed the Xbox One.
The heavyweights of the US aerospace and defense industry Raytheon (+ 0.69%) and United Technologies (-3.13%) announced Sunday a merger agreement that will create one of the largest global groups in these sectors. The stock exchange merger is expected to be completed in the first half of 2020.
US President Donald Trump said Monday “a little worried” about the effect on competition of the merger.
The US company Salesforce (-5,26%), specialized in the IT services allowing the companies to interact with their customers, announced Monday the acquisition of Tableau Software (+ 33,70%), a specialized platform company in the big data analysis, worth $ 15.7 billion.
Some investors have pointed out the high price of the deal to explain the decline in the Salesforce title.
American start-up Beyond Meat, which offers steaks and herbal sausages, soared another 21.24% on Monday, a few days after the publication of its optimistic results. Its stock has almost been multiplied by seven since its stock market debut in mid-May.