Stocks close with gains after Trump delays tariff deadline
The top equity markets closed with gains on Monday after President Trump abandoned a March 1 deadline for a new trade deal with China, spurring renewed optimsim that the two sides would reach an agreement to remove the threat of increased tariffs.
Trump said Sunday he would delay the increase in tariffs citing “substantial progress” on issues including intellectual property and technology transfer after a weekend of talks.
In a tweet, Trump wrote that should progress continue, the U.S. would plan a summit with President Xi Jinping of China to “conclude an agreement.” Trump said there would soon be a signing ceremony.
Trump had threatened to increase tariffs on $200 billion of Chinese goods by 25 percent -- up from the current 10 percent -- and extend levies to an additional $267 billion in products if a deal was not reached by Friday.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 38460.92 | -42.77 | -0.11% |
| SP500 | S&P 500 | 5071.63 | +1.08 | +0.02% |
| I:COMP | NASDAQ COMPOSITE INDEX | 15712.748618 | +16.11 | +0.10% |
In deal news to start the week, General Electric announced a definitive agreement to sell its BioPharma business to Danaher Corp. for a total consideration of $21.4 billion. Shares for GE -- which said earlier this month it would scale back its plans for a new headquarters -- closed up over 6 percent to $10.82. Danaher Corp.'s stock was up 8.4 percent to $123.15 per share.
Roche is also buying Philadelphia biotechnology company Spark Therapeutics for $4.3 billion. It is a move by the Swiss drugmaker to expand its presence treating hemophilia and comes as Spark seeks new customers for its landmark treatment for blindness. Roche's stock closed with a slight loss to $34.60, while Spark shares ended the day at a record high $113.48, a 120 percent increase over the prior close.
Also, Netflix scored four Oscars at the 91st Academy Awards on Sunday night. “Roma,” written and directed by Hollywood mainstay Alfonso Cuaron, won three awards, including Best Foreign Film, Best Cinematography and Best Director. “Period. End of Sentence.” won the Oscar for best documentary short. Shares for the subscription streaming platform rose slightly to $364.31.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GE | GE AEROSPACE | 159.26 | -3.40 | -2.09% |
| DHR | DANAHER CORP. | 250.33 | -2.78 | -1.10% |
| ONCE | n.a. | n.a. | n.a. | n.a. |
| NFLX | NETFLIX INC. | 555.12 | -22.39 | -3.88% |
In Asian market trading on Monday, China’s Shanghai jumped 5.6 percent, Hong Kong’s Hang Seng added 0.5 percent and Japan’s Nikkei also added 0.5 percent.
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In Europe, The major markets ended the day higher. London’s FTSE traded higher by 0.1 percent, Germany’s DAX added 0.4 percent and France’s CAC rose 0.3 percent.