U.S. stocks jump as tensions with Nkorea appear to ease
Stocks are rallying Monday as the tensions between the U.S. and North Korea that flared last week appeared to ease.
Technology companies and banks are making some of the largest gains as stocks bounce back from their losses with some of the biggest gains the market has seen this year.
All 11 industrial groups in the Standard & Poor’s 500 index are moving higher.
KEEPING SCORE: The S&P 500 jumped 24 points, or 1 per cent, to 2,466 as of 1 p.m. Eastern time. The Dow Jones industrial average gained 144 points, or 0.7 per cent, to 22,003. The Nasdaq composite added 80 points, or 1.3 per cent, to 6,336. The Russell 2000 index of smaller companies climbed 18 points, or 1.3 per cent, to 1,392.
Last week was the worst for stocks since late March, as the S&P 500 fell more than 1.4 per cent. Rising tensions between the U.S. and North Korea startled investors out of the complacency that has weighed on the stock market for most of this year. That eased Monday after officials said fighting is not imminent. The top U.S. military officer said the country wants to resolve the standoff peacefully.
Thursday was the worst day for stocks since mid-may, and Monday is shaping up to be the best day since late April.
LEADERS: Technology stocks outpaced the rest of the market. Apple added $1.85, or 1.2 per cent, to $159.33 and Microsoft picked up $1.05, or 1.4 per cent, to $73.55. Western Digital advanced $2.57, or 3.2 per cent, to $82.47.
Chipmaker Nvidia rebounded after two days of sharp losses. It rose $8.95, or 5.7 per cent, to $164.92. Competitors like Micron Technology and Analog Devices also rose. NEW BUYER NETS NEFF: Equipment rental company Neff said it received a buyout offer worth $25 per share, or $596 million. It did not say who made the offer, but Neff said its board has decided the new offer is superior to a bid from H&E Equipment Services that the company accepted last month. H&E Equipment has the right to match the new offer and is entitled to a breakup payment if Neff it acquired by another company. Neff climbed $4.05, or 18.5 per cent, to $25.90. H&E’S offer valued Neff at $21.07 a share.
H&E Equipment lost 40 cents, or 1.9 per cent, to $21.19.
FRIENDLY NABORS: Drilling technology developer Tesco said it will be acquired by drilling contractor Nabors Industries
in an all-stock deal. The companies said Tesco is being valued at $4.62 a share. Tesco added 50 cents, or 12.8 per cent, to $4.40. Nabors lost 15 cents, or 2.2 per cent, to $6.65.
STICKER SHOCK? Fiat Chrysler climbed after Automotive News reported that a Chinese car maker offered to buy the company. It did not identify that company and said Fiat Chrysler rejected the offer because it wasn’t high enough, but investors hoped another bid would come. Fiat Chrysler stock gained $1.06, or 9.2 per cent, to $12.67.
BONDS: Bond prices turned lower. The yield on the 10year Treasury note rose to 2.21 per cent from 2.19 per cent late Friday. That helped banks, as higher bond yields mean higher interest rates and greater profits on mortgages and other loans.
Bank of America climbed 53 cents, or 2.2 per cent, to $24.39 and Jpmorgan Chase gained $1.27, or 1.4 per cent, to $92.70.
ENERGY: U.S. crude oil lost 91 cents, or 1.9 per cent, to $47.91 a barrel in New York. Brent crude, the international standard, shed $1.04, or 2 per cent, to $51.06 a barrel in London. Energy companies were little changed.
CURRENCIES: The dollar rose to 109.45 yen from 109.04 yen. The euro fell to $1.1796 from $1.1824.