Wall Street Overview
Shares soared on Monday, December 3, after Donald Trump staged a 90-day "truce in the still-brewing trade war between Washington and Beijing following the G-20 summit in Argentina "exclaimed.
A weekend White House statement said Trump will hold back the tariff increase on China-made goods, which should come into effect on January 1
My meeting in Argentina with Chinese President Xi was an extraordinary one. Relations with China have made a big leap forward! Very good things will happen. We are dealing with great strength, but China also has a lot to gain when a deal is completed.
– Donald J. Trump (@realDonaldTrump) December 3, 2018
The Dow Jones Industrial Average rose 216 points or 0.85% to 25,755, the S & P 500 rose 0.82% , and the Nasdaq rose 1.29%. The Dow surge was above all at Boeing Co. (BA) and Caterpillar Inc. (CAT), which rose 3.2% after Bank of America Merrill Lynch upgraded the construction and agricultural machinery manufacturers after the ceasefire.
Apple Inc. (AAPL) rose 2.2% on Monday as investors bet that a ceasefire in the US-China trade war will eliminate an important tariff risk left by the world's most valuable tech company.
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Ford Motor C. (F) rose 2.9% on Monday, despite a fall in revenue of 6.9% in November. The US automakers were higher on Monday after Trump said China had agreed to lower prices for cars imported into the world's largest market.
Nexstar Media Group Inc. (NXST) confirmed on Monday that it has signed a purchase agreement for Tribune Media Co. (TRCO) of $ 6.4 billion, including debt.
The merged company would be the largest local US TV station. Reuters reported that the merger could be announced on Monday.
Nexstar outperformed private investment firm Apollo Global Management LLC (APO) with an all-cash offering valued by Tribune at around $ 46.50 per share. The grandstand closes at $ 40.26 on Friday, November 30th. On Monday it rose 9.9% to $ 44.23.
GlaxoSmithKline PLC (GSK) announced on Monday that it would buy the Ovarian Cancer Specialist Tesaro Inc. (TSRO) for around $ 5.1 billion in cash, but did not warn against the purchase. By 2022, the pharmaceutical industry will Giants too.
GlaxoSmithKline said it would spend $ 75 for Waltham, Mass. Tesaro, a premium of 110% over the 30-day average of Tesaro. Glaxo said the deal will outperform its short-term earnings by a "mid to high" single-digit percentage, but by 2022, it will start to increase its bottom line.
Tesaro rose 58.5% on Monday to $ 73.50.
Qualcomm Inc. (QCOM) told Reuters that its $ 44 billion collapsed NXP Semiconductors NV (NXPI) acquisition had not been revived, and rejected a White House proposal to complete it could.
After the weekend talks between Donald Trump and China President Xi Jinping, the White House, said China was "open to approval of the previously unauthorized" deal for Qualcomm to acquire NXP, "if it is re-presented." Qualcomm resigned to buy NXP in July after failing to obtain approval from the Chinese authorities.
In an email to Reuters, Qualcomm said there was no prospect of a revival of the acquisition.