US stocks are adding to their record highs from last week as the US and Mexico prepare to announce a trade agreement.
Global markets are rising Monday as the U. S. and Mexico prepare to announce a trade agreement. In the U. S., industrial and basic materials companies, banks and technology companies are rising. Automakers are climbing as investors hope the agreement will prevent tariffs on imported cars.
Stocks had finished at record highs Friday. On Monday the Nasdaq composite traded above 8,000 for the first time.
KEEPING SCORE: The S&P 500 index climbed 19 points, or 0.7 percent, to 2,894 as of 11:30 a.m. Eastern time. The Dow Jones Industrial Average jumped 225 points, or 0.9 percent, to 26,015. The Nasdaq composite gained 72 points, or 0.9 percent, to 8,018. The Russell 2000 index of smaller-company stocks added 9 points, or 0.6 percent, to 1,735.
The benchmark S&P 500 has risen for seven of the last eight weeks following strong corporate earnings and growing optimism the U. S. would work out its differences with several major trading partners. The &P 500 is up 6.5 percent since the end of June and closed at an all-time high Friday. The Nasdaq and Russell 2000 also set new highs.
TRADE TALKS: U. S. and Mexican negotiators were preparing Monday to announce a deal that would set the stage for an overhaul of the North American Free Trade Agreement. The White House said it planned an announcement on trade Monday.
Media reports over the last few days had said the two countries were getting closer to a deal.
Automakers climbed as investors felt the threat of tariffs on imported cars was decreasing. GM gained 4.1 percent to $37.44 and Ford rose 2.7 percent to $9.94.
LEADERS: Companies that are most likely to benefit from faster economic growth led the market. JPMorgan Chase climbed 2 percent to $116.96 and Goldman Sachs jumped 3.1 percent to $242.35 as financial companies rose. Among industrial firms, construction equipment maker Caterpillar added 2.7 percent to $141.99 and Boeing gained 1.1 percent to $353.08.
In technology, Facebook picked up 1.7 percent to $177.64 and Alphabet, Google’s parent company, rose 1.2 percent to $1,251.35. Netflix rose 3 percent to $369.42.
TESLA’S LATEST TWIST: Tesla fell 2.6 percent to $314.41 after CEO and top shareholder Elon Musk said over the weekend that the electric car maker will remain a publicly traded company. Musk wrote in a Friday blog post that he gave up on a plan to take the company private, partly because investors didn’t support it.
Wall Street was stunned early this month when Musk tweeted that he had secured funding to take Tesla private, and while its stock jumped initially, investors remained skeptical. Musk said his proposal valued Tesla at $420 a share and the stock peaked at about $380 a share, close to an all-time high for Tesla but still well below the price he named.
Since then the stock has tumbled as it became clear Musk hadn’t lined up funding for the deal. Now reports say regulators are looking into Musk’s tweets, including whether he described the potential deal accurately, among other issues for Tesla.
ENERGY: Benchmark U. S. crude remained at $68.74 a barrel in the New York. Brent crude, which is used to price international oils, added 0.1 percent to $75.89 a barrel in London.
OVERSEAS: European stocks rose after a major economic survey in Germany, the Ifo institute index, came in stronger than analysts expected. Germany’s DAX rose 1.1 percent while the CAC 40 in France was 0.9 percent higher. British markets were closed for a summer bank holiday.
Japan’s benchmark Nikkei 225 index added 0.9 percent and South Korea’s Kospi rose 0.3 percent. Hong Kong’s Hang Seng jumped 2.2 percent.
BONDS: Bond prices slipped. The yield on the 10-year Treasury note rose to 2.84 percent from 2.82 percent.
CURRENCIES: The dollar fell to 111.05 yen from 111.20 yen. The euro rose to $1.1677 from $1.1625.
The Canadian dollar fell to 1.2973 from 1.3029 late Friday. The Mexican peso rose to 18.62 from 18.9249.
