According to analysts, the new agreement will deliver more market access to U.S. dairy farmers, while Canada has effectively capped automobile exports to the States. Both nations, along with Mexico, which agreed to a deal in August, are expected to sign the agreement by the end of November. The agreement would then move to Congress, where it is expected to be passed.
The major U.S. stock indexes finished mixed at the start of the new quarter with the S&P 500 Index and the Dow charging higher and the NASDAQ struggling. The catalyst behind the buying was the announcement of a trilateral trade agreement involving the United States, Mexico and Canada.
The benchmark S&P 500 Index settled at 2924.59, up 10.61 or +0.36%. The blue chip Dow Jones Industrial Average closed at 26651.21, up 192.90 or +0.73% and the tech-based NASDAQ Composite ended the session at 8036.26, down 10.09 or -0.13%.
The S&P 500 was boosted by strong performances in the energy, materials and industrials sectors. The Dow was supported by shares of Chevron and Boeing which outperformed. The NASDAQ was capped by weak performances in Facebook and Intel.
On Sunday, Canada and the United States announced a trade deal to replace the current NAFTA. The new accord is expected to be named the United States-Mexico-Canada Agreement, or “USMCA” for short.
According to analysts, the new agreement will deliver more market access to U.S. dairy farmers, while Canada has effectively capped automobile exports to the States. Both nations, along with Mexico, which agreed to a deal in August, are expected to sign the agreement by the end of November. The agreement would then move to Congress, where it is expected to be passed.
“It’s a good day for Canada,” Prime Minister Justin Trudeau told reporters after a late-night Cabinet meeting to discuss the deal.
In a joint statement, Canada and the United States said it would “result in freer markets, fairer trade and robust economic growth in our region.”
Over the week-end, Tesla CEO Elon Musk settled charges with the Securities and Exchange Commission (SEC) over his recent aborted bid to take the firm private. As part of the settlement, Musk will relinquish his position as chairman of the board at Tesla for at least three years. Tesla and Musk will pay $20 million each in fines. Tesla shares jumped more than 17 percent on the news of the settlement.
Additionally, Shares of General Electric surged 7.1 percent after the company abruptly removed CEO John Flannery from his post and names Lawrence Culp as his successor.
James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.