Wall Street Rally Set To Continue After U.S.-Mexico Reach Deal To Avoid Tariffs

444
Stocks on Wall Street

U.S. stocks poised to open higher

Stocks on Wall Street look set to continue rallying on Monday, after U.S. President Donald Trump “indefinitely suspended” 5% tariffs on all Mexican imports.

The tariffs, which were supposed to go into effect today, were suspended after Mexican officials agreed to beef up security at its porous border with Guatemala by deploying its National Guard police force. Mexico also agreed to handle migrants seeking asylum in the U.S.

“I am pleased to inform you that The United States of America has reached a signed agreement with Mexico.” Trump tweeted on Friday. “The Tariffs scheduled to be implemented by the U.S. on Monday, against Mexico, are hereby indefinitely suspended.”



As of 6:13 a.m. ET, futures on the blue-chip Dow gained 98.5 points, or 0.38% to 26,105.5. Futures on the tech-heavy Nasdaq 100 were up 25.12 points, or 0.34% to 7,444.62 while those on the broader S&P 500 jumped 9.38 points, or 0.33% to 2,888.38.

Mexican peso surges on U.S.-Mexico deal

The Mexican peso gained against the U.S. dollar early Monday as markets hailed a deal between the two countries that removed the threat of new tariffs. The peso jumped 2.5 % to 19.1381 per dollar on the news.

Jens Nordvig, chief executive officer and founder at Exante Data, told Bloomberg that although the currency is likely to regain some ground, “lingering uncertainty” might hinder it from jumping to its previous level.

United Technologies to merge with Raytheon

United Technologies Corp (NYSE: UTX) a U.S. industrial technology giant, has agreed to merge with Patriot missile defense system maker Raytheon (NYSE: RTN) in an all-stock deal. According to the Wall Street Journal, which first reported the deal on Sunday, the two companies will combine to form Raytheon Technologies Corp.

The combined company would have annual sales of roughly $74 billion, making it the second-biggest aerospace and defense firm in the U.S. behind Boeing Co (NYSE: BA).

Shares of United Technologies gained 3.64% while Raytheon stock soared 10.27% in premarket trading Monday.

Salesforce to buy Tableau Software

Salesforce.com Inc (NYSE: CRM) announced on Monday morning it is acquiring data analytics platform Tableau Software (NYSE: DATA) in an all-stock transaction valued at $15.7 billion.

Tableau shareholders will receive 1.103 of Salesforce common stock, valuing the offer at $177.88 per share based on the Salesforce’s Friday closing price. Tableau shares rocketed 35% to $169.50, while Salesforce stock declined 3% to $156.43 before the opening bell.

NO COMMENTS

LEAVE A REPLY