Stocks take US-North Korea summit outcome in stride
U.S. stocks ended the session little changed on Tuesday following the conclusion of the historic summit between President Trump and North Korean leader Kim Jong Un. The two leaders signed what was being considered an agreement that acknowledged progress in their talks.
The joint text signed by Trump and Kim, committed to "complete denuclearization" of the Korean Peninsula.
Kim was quoted as saying that the world will see a major change and thanked Trump for making the meeting happen.
|I:DJI||DOW JONES AVERAGES||32444.21||-116.39||-0.36%|
|I:COMP||NASDAQ COMPOSITE INDEX||11877.577058||+17.47||+0.15%|
While the Dow Jones Industrial Average and the S&P 500 were little changed, the Nasdaq had some momentum closing 0.7% higher. The tech-heavy index touched an all-time high in the session, closing at another record. The Russell 2000, a snapshot of smaller U.S. based companies, also closed at a record.
Meanwhile, economic data released on Tuesday included consumer prices. The consumer price index (CPI) increased by 0.2% in May, according to a government report, in line with Wall Street's expectations. The annual CPI rate rose to 2.8%, its highest since 2012. Also, the Federal Reserve began day one of its two day meeting with a decision on interest rates due on Wednesday. Economists are predicing that policymakers will raise the federal funds rate by 25 basis points and perhaps give clues on future rate hikes for the remainder of 2018.
In company news, traders await the Department of Justice’s ruling on AT&T’s proposed $85 billion acquisition of Time Warner. A favorable ruling is expected, and the sentiment is that if the deal is approved it will spark a bidding war for certain 21st Century Fox assets, including a rival bid from Comcast for the assets that Disney is buying from Rupert Murdoch's empire for $52 billion. Comcast shares slipped slightly, while Fox shares climbed. 21st Century Fox is the parent of FOX Business and Fox News.
In commodities, oil futures oscillated. The Organization of Petroleum Exporting Countries released its latest monthly update on the oil market, and the group’s commentary on the oil market suggested ramping up output isn’t a guarantee. The group of oil producers will meet on June 22 to discuss its oil production.
FOX Business' Ken Martin contributed to this reported.