Stocks mixed on rising US-Iran tensions, Trump-Xi meeting
Stocks closed mixed Monday as investors weighed rising U.S.-Iran tensions against hope that a coming meeting between President Trump and Chinese President Xi Jinping will produce a trade deal.
President Trump signed an executive order, before the market closed, to impose “hard-hitting” sanctions against Iran, days after Tehran shot down a U.S. spy drone over the Strait of Hormuz amid rising tensions between the two countries.
Trump said the order will target Iran's Supreme Leader Ayatollah Ali Khamenei and associates with additional financial sanctions.
Trump said on Sunday he was not seeking war with Iran after a senior Iranian military commander warned any conflict in the Gulf region could spread uncontrollably and threaten the lives of U.S. troops.
Investors are looking toward the upcoming U.S.-China trade talks to help reduce tensions of a trade war that is damaging the global economy.
Optimism about an interest rate cut and talks between the U.S. and China, helped the S&P 500 index hit a record high last week.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 38085.8 | -375.12 | -0.98% |
| SP500 | S&P 500 | 5048.42 | -23.21 | -0.46% |
| I:COMP | NASDAQ COMPOSITE INDEX | 15611.759799 | -100.99 | -0.64% |
Later this week, Trump and Chinese President Xi Jinping are expected to meet at the G-20 summit in Japan.
Bristol-Myers shares fell after the drugmaker said its planned $74 billion deal to buy drugmaker Celgene was expected to close at the end of 2019 or beginning 2020. That is later than originally expected.
U.S. casino operator Eldorado Resorts has agreed to buy Caesars Entertainment in a $17.3 billion cash-and-stock deal, including debt. Eldorado will acquire all of the outstanding shares of Caesars for a total value of $12.75 per share, consisting of $8.40 per share in cash consideration and 0.0899 shares of Eldorado common stock for each Caesars share.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BMY | BRISTOL MYERS SQUIBB CO. | 44.68 | -4.18 | -8.56% |
| CELG | n.a. | n.a. | n.a. | n.a. |
| CZR | CAESARS ENTERTAINMENT INC. | 38.04 | -0.44 | -1.14% |
| ERI | n.a. | n.a. | n.a. | n.a. |
The yield on the 10-year Treasury slipped to 2.02 percent.
Crude oil edged higher to $57.67 per barrel. Gold prices climbed toward a six-year high on expectations that the Federal Reserve will cut interest rates, perhaps as soon as next month.
Asian markets on Monday started the week with gains. China's Shanghai rose 0.2 percent, Hong Kong's Hang Seng added 01. percent and Japan's Nikkei also added 0.1 percent.
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Markets in Europe finished the day mixed. London's FTSE closed up 0.1, Germany's DAX fell 0.5 percent and France's CAC was off 0.1 percent.