Stocks were mixed on Monday, and the major U.S. stock indexes were hovering near records as investors held on to optimism that the U.S. and China will reach a deal to avoid an all-out trade war.
This optimism came last week after both the U.S. and China acknowledged that the two sides would meet in August to discuss trade.
The Dow Jones Industrial Average was higher on Monday, the S&P 500 was flat and the Nasdaq Composite was lower.
The Dow Jones Industrial Average rose sharply last week to trade at its highest level since February. The S&P 500 is just off of its record high and so is the Nasdaq, even though the tech-heavy index ended the week fractionally lower.
With earnings season essentially over, geopolitics will be in the spotlight. Even though there is some optimism that China and the U.S. are to meet, the two countries are scheduled to impose retaliatory tariffs of 25 percent on $16 billion worth of imports.
Traders will also watch the latest developments in Turkey. S&P Global Ratings and Moody’s downgraded the country’s debt following its economic turmoil and plunging currency.
In company news, on Monday PepsiCo said it would buy SodaStream International for $3.2 billion, about an 11 percent premium to SodaStream’s Friday closing price.
In economic news, on Wednesday the Federal Reserve will release the minutes from its most recent meeting.
Commodities were mixed.
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