U.S. Stocks to Extend Push into Record Levels
Last Friday, both S&P 500 Index and the Nasdaq Composite Index finished the week at records. It marked the first for the broader S&P since January 26. The Dow Jones Industrial Average closed at its highest level since early February but remains about 3% below its own all-time high. August 22 also marked the longest bull market in history.
On Monday, U.S. stock-index futures are modestly higher which seem to suggest that Wall Street will be extending its push to record territory. The Dow futures rose 74 points, the S&P 500 futures climbed 6 points, and the futures for the Nasdaq-100 went up 26.25 points.
Global Stocks Post Highest Level
It was a great start for world stock markets on Monday as it rose to their highest level in more than two weeks. The affirmation of the U.S. Fed Chief to gradually raise interest rates and the easing of trade war jitters buoyed the exchanges.
The stock markets in Frankfurt and Paris went up 0.4% each. Japan’s blue-chip Nikkei closed at a 10-week high while MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.1%. The MSCI All-Country World index which tracks shares in 47 countries has reached its highest level since August 9. The British markets were closed for a public holiday.
U.S. and Mexico Nears Common Ground on NAFTA Talks
The trade negotiators from U.S. and Mexico are almost close to reaching a common ground in their bilateral differences on the North American Free Trade Agreement (NAFTA). This was confirmed by Mexican Economy Minister Ildefonso Guajardo on Sunday. The talks will resume on Monday morning,
Guajardo told reporters earlier that the two sides were likely “hours” away from reaching a common position. However, he said later that more work is still needed to get it done. The U.S.-Mexico discussions have focused on fashioning new rules for the automotive industry. U.S. President Donald Trump wants to rework the 24-year-old pact which he calls a “disaster” for American workers.
Drop in Tesla Shares Loom
If the trading in Tesla shares in Germany is any indication, the shares of Tesla Inc. (TSLA) might see a 5% drop too when U.S. markets open on Monday. Investors in reacted to Chief Executive Elon Musk’s decision to abandon his take-private plan. TSLA.TG fell 5% to $263.50 in Germany,
After a series of consultations, Musk came to the decision to abandon his controversial plan. He announced it in a blog post late Friday. Most of the electric-car maker’s existing shareholders opposed Musk’s proposed deal.
Liquidation Sales at Sears and Kmart Stores Begins This Week
Sears Holdings Corp. (SHLD) has released the list of unprofitable stores numbering 46 located across 28 states that will close in November. Of the total, 33 are Sears stores and 13 are Kmart stores. The struggling department store chain said that as early as August 30, the liquidation sales at these closing stores will begin.
SHLD has tumbled nearly 40% in August and plunged 85% in the last year. On Friday, the stock price stood at $1.10 and is down -69.27% year-to-date. The last time Sears enjoyed a profitable year was 2010. Since then, the company lost $11.2 billion with sales skidding 60% during the period.