GRID_STYLE

Post/Page

Weather Location

{fbt_classic_header}

Rally over Canada deal fades

Rally over Canada deal fades

Rally over Canada deal fades

  • FILE - In this June 24, 2016, file photo, people walk by the New York Stock Exchange. On Monday, Oct. 1, 2018, stocks are opening broadly higher on Wall Street, led by big gains in industrials after General Electric named a new CEO. (AP Photo/Richard Drew, File) Photo: Richard Drew / Copyright 2018 The Associated Press. All rights reserved. FILE - In this June 24, 2016, file photo, people walk by the New York Stock Exchange. On Monday, Oct. 1, 2018, stocks are opening broadly higher on Wall Street, led by big gains in industrials after General Electric named a new CEO. (AP Photo/Richard Drew, File) less FILE - In this June 24, 2016, file photo, people walk by the New York Stock Exchange. On Monday, Oct. 1, 2018, stocks are opening broadly higher on Wall Street, led by big gains in industrials after General ... more
  • window._taboola = window._taboola || []; _taboola.push({ mode: 'thumbnails-c', container: 'taboola-interstitial-gallery-thumbnails-3', placement: 'Interstitial Gallery Thumbnails 3', target_type: 'mix' }); _taboola.push({flush: true});

Caption

Close

FILE - In this June 24, 2016, file photo, people walk by the New York Stock Exchange. On Monday, Oct. 1, 2018, stocks are opening broadly higher on Wall Street, led by big gains in industrials after General Electric named a new CEO. (AP Photo/Richard Drew, File) less FILE - In this June 24, 2016, file photo, people walk by the New York Stock Exchange. On Monday, Oct. 1, 2018, stocks are opening broadly higher on Wall Street, led by big gains in industrials after General ... more Rally over Canada deal fades Back to Gallery

New York

Stocks barreled higher in the early going Monday after the U.S. and Canada agreed to a new trade deal, but the rally ran out of momentum later in the day, leaving major indexes mixed.

Oil prices neared four-year highs and smaller companies suffered their worst losses in three months.

Large industrial and basic materials stocks made big gains, and energy companies rose as crude oil and natural gas reached their highest prices in years. Car companies also rose as investors anticipated that tariffs on imported cars are less likely now.

Many investors saw the new trade deal, the United States-Mexico-Canada Agreement, as an update of the 1994 North American Free Trade Agreement, not a major overhaul.

"Most investors thought the NAFTA deal would end somewhat peacefully," said Mark Hackett, chief of investment research at Nationwide Investment Management. "It's an incremental positive to get it out of the news but it's not transformational."

General Electric soared 7.1 percent after it ousted Chairman and CEO John Flannery, while Tesla reversed a big loss Friday and made its largest gain in five years â€" 17.3 percent â€" after founder Elon Musk settled a lawsuit brought by securities regulators, allowing him to remain CEO.

The S&P 500 index rose as much as 23 points during the day, then finished with a gain of 10.61 points, or 0.4 percent, at 2,924.59. The Dow Jones Industrial Average jumped 192.90 points, or 0.7 percent, to 26,651.21. The Nasdaq composite lost 9.05 points, or 0.1 percent, at 8,037.30.

Mexico's main stock index rose 0.8 percent and while Canada's added 0.2 percent. Mexico and the U.S. announced a trade agreement in late August and despite a few harsh remarks by President Donald Trump and Prime Minister Justin Trudeau, experts expected Canada would join the pact, as Canada is the U.S.' second-largest trade partner and a deal without Canada would have affected the supply lines of companies in numerous industries.

The Russell 2000 index of smaller and more U.S.-focused companies sank 23.58 points, or 1.4 percent, to 1,672.99. That was its worst loss since late June. The index has lost 3.9 percent since the end of August while multinational companies, like those on the S&P 500, have moved higher.

Source: Google News Canada | Netizen 24 Canada

No comments