US stocks up as Trump withdraws threat of Mexico tariffs

U.S. stocks closed up on Monday in response to President Trump's withdrawal of a threat to slap tariffs on billions of dollars of Mexican goods.

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The Dow Jones Industrial Average has now been up six days, it's longest winning streak in 13 months.

Trumps decided late Friday to back away from his plan to slap a 5 percent tariff on Mexican goods after the nation agreed to enforce a tougher stance on immigration and purchase more agricultural goods from the U.S.

The yield on the 10-year Treasury edged up to 2.14 percent.

Crude oil prices fell 1.17 percent to $53.36 per barrel.

Merger news helped boost investor sentiment.

United Technologies and defense contractor Raytheon agreed to merge in an all-stock deal described as a “merger of equals,” the companies announced on Sunday, creating a company with $74 billion in annual sales.

TickerSecurityLastChangeChange %
UTXUNITED TECHNOLOGIES CORPORATION142.00+3.65+2.64%
RTNRAYTHEON COMPANY206.43+4.19+2.07%
CRMSALESFORCE.COM INC.142.61-1.94-1.34%
KHCKRAFT HEINZ COMPANY28.45+0.64+2.28%

The new company will be named Raytheon Technologies Corporation. Currently, United Technologies has a market value of $114 billion while Raytheon’s is about $52 billion.

Salesforce.co is purchasing Tableau Software in an all-stock deal valued at $15.7 billion, the company said on Monday, a transaction that promises to bolster the cloud computing firm’s data analytics capabilities.

Elsewhere in corporate news, Kraft Heinz shares traded higher on Monday after the food and beverage firm disclosed that it completed an internal investigation into its procurement operations.

A separate probe by the Securities and Exchange Commission remains ongoing, but the Chicago-based company’s own investigation spurred new policies to “strengthen internal control over financial reporting,” Kraft said in a statement on Friday.

The firm now expects to report first-quarter earnings, which were twice delayed by the internal review, by the end of July.

TickerSecurityLastChangeChange %
I:DJIDOW JONES AVERAGES26858.7+31.06+0.12%
SP500S&P 5003008.16+1.44+0.05%
I:COMPNASDAQ COMPOSITE INDEX8138.654618-24.33-0.30%

China's imports fell the most in nearly three years, another sign of weakening domestic demand that may prompt China to increase stimulus measures.

May imports were much weaker than expected, falling 8.5 percent, the sharpest drop since July 2016. That left the country with a trade surplus of $41.65 billion for the month. Analysts had forecast imports would fall 3.8 percent.

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Chinese markets closed higher to start the week with the Shanghai Composite added 0.9 percent. Hong Kong's Hang Seng rose 2.3 percent. Japan's Nikkei ended the day rising 1.2 percent to a 2-week high.

European markets ended the day higher. Britain’s FTSE 100 added 0.6 percent,  France’s CAC 40 added 0.3 percent and German markets were closed for a holiday.