Stocks finished higher Monday as positive trade headlines lifted investor sentiment. President Trump reported that China asked to “get back to the table” and resume negotiations. The Dow climbed 269 points, while the S&P 500 gained 1.1%. The Nasdaq Composite was up 1.3%.
This followed Friday’s downbeat session that capped a fourth consecutive weekly decline for stocks, the longest such streak for the S&P 500 since 2011. The major averages had been set for weekly gains of at least 1% until China announced retaliatory tariffs on another round of U.S. goods Friday, sending the Dow sliding more than 600 points.
Treasuries were slightly weaker Monday, with the yield on the 10-year note up two basis points to 1.54%. On the data front, a preliminary reading of durable goods orders jumped 2.1% in July, well above expectations of a 1.2% increase. Another report showed core capital goods shipments fell 0.7% last month, the largest decline since October 2016. A separate release from the Dallas Fed revealed manufacturing activity in the region improved in August, with the gauge rising into positive territory for the first time in four months. In commodities, WTI crude erased early session gains to fall 1% to $53.64/barrel, its fifth straight daily loss, and the longest such stretch since November 2018.
In corporate news, Celgene rose 3.2% after agreeing to sell its psoriasis drug to Amgen for $13.4 billion. This sent shares of Bristol-Myers Squibb up 3.3% as the antitrust sale should help secure regulatory approval for its proposed acquisition of Celgene.