Global Stocks Rise, but Boeing Drags Dow Industrials Lower--Update
March 11 2019 - 11:32AM
Dow Jones News
By Will Horner
U.S. stocks rose Monday, powered by gains in technology
shares.
The Dow Jones Industrial Average climbed 80 points, or 0.3%, to
25526. The S&P 500 advanced 1% and the tech tech-heavy Nasdaq
added 1.4%.
Tech shares in the S&P 500 advanced 1.7% after Nvidia Corp.
agreed to buy computer-networking supplier Mellanox Technologies
Ltd. in an all-cash deal valued at roughly $7 billion. Nvidia's
shares rose 3% while Mellanox's shares jumped 8.3%.
Apple shares rose 2.9%, among the biggest gains in the Dow
industrials. Shares of Boeing dragged on the blue-chip index,
slumping 8.5% after China and Indonesia grounded all of their
Boeing 737 Max 8 aircraft following Sunday's deadly crash of an
Ethiopian Airlines jet of the same type.
Shares of other aerospace and defence companies mostly rose.
United Technologies, Lockheed Martin and Raytheon each ticked up at
least 0.2% apiece.
Monday's gains came after questions about the health of the
world economy prompted stock declines Friday. A dramatic slide in
Chinese exports and the lackluster U.S. jobs report led Wall Street
to close out its worst week since December.
Hopes were lifted that a U.S.-China trade could soon be reached
after Beijing's top central banker said Sunday that China had
agreed not to devalue its currency to support its exporters.
The yuan's decline in 2018 had raised concerns in Washington
that China was pushing down its value to offset U.S. tariffs on
Chinese products, and had been a key sticking point for U.S. trade
negotiators.
While the trade issue remained at the forefront of investors'
concerns, Geoffrey Yu, head of the investment office at UBS Wealth
Management, said some were beginning to see light at the end of the
tunnel.
"It seems like the market is starting to move on from this,
pricing in significant good news," he said. "We just need Trump to
announce a summit, and a summit is virtual confirmation that
something is in the pipeline and then we can move on."
U.S. consumers ramped up their spending in January, a sign of
solid economic growth in the first quarter following a mixed jobs
report Friday that raised fresh concerns about U.S. growth.
Exceptional factors such as the partial federal government
shutdown meant the job numbers were an exception to what is a
generally strong outlook, said Michael O'Sullivan, chief investment
officer for international wealth management at Credit Suisse.
"Wages growth is pretty strong and our view is that the U.S.
economy at the moment is pretty solid, pretty OK," he said.
Comments from Jerome Powell in a televised interview Sunday also
offered investors some comfort. He said the U.S. economic outlook
was favorable and doesn't require higher or lower interest rates
for now.
In Europe, market participants were readying for a busy week of
Brexit news. The British parliament is set to vote on Prime
Minister Theresa May's Brexit deal on Tuesday, with expectations
high that it will be rejected for a second time, and further votes
on Wednesday and Thursday likely.
The WSJ Dollar Index, which tracks the U.S. currency against a
basket of 16 peers, was broadly flat. The yield on 10-year
Treasurys rose to 2.637%, from 2.627% Friday. Yields and prices
move in opposite directions.
Brent crude, the global oil benchmark, rose 0.8% to $66.22 a
barrel. Gold fell 0.2% to $1,295.30 a troy ounce.
Elsewhere, the Stoxx Europe 600 rose 0.4%. In Asia, China's
indexes advanced following sharp declines at the end of last week.
The Shenzhen A Share Index jumped 3.9% and Hong Kong's Hang Seng
rose 1%.
--Jessica Menton contributed to this article.
(END) Dow Jones Newswires
March 11, 2019 11:17 ET (15:17 GMT)
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