MARKET SNAPSHOT: Dow Climbs, Powered By Goldman, Boeing But Broader Market Struggles For Traction Higher
June 24 2019 - 10:35AM
Dow Jones News
By William Watts and Mark DeCambre, MarketWatch
Casino operator Caesars agrees to $8.6 billion buyout
Stock benchmarks on Monday attempted to gain altitude, extending
last week's sharp gains, as investors look ahead to a meeting
between President Donald Trump and Chinese leader Xi Jinping, while
also tracking tensions between the U.S. and Iran.
The Dow Jones Industrial Average rose 52 points, or 0.2%, to
26,770, while S&P 500 added 0.1% to 2,953, a gain of about 3
points, while the Nasdaq Composite Index edged 3 points, or less
than 0.1%, higher to 8,034.
Stocks edged lower Friday but booked weekly gains that have the
Dow on track for its best June performance since 1938
(http://www.marketwatch.com/story/the-dow-is-now-on-pace-for-its-best-june-return-in-80-years-but-the-fed-could-change-that-in-a-heartbeat-2019-06-18)
and it is just 0.4% away from its all-time closing high set in
October. The Dow rose 2.4% last week, while the S&P 500 logged
a 2.2% gain. The Nasdaq saw a 3% weekly advance.
Need to Know:Why you should 'keep your eyes open' during this
June rally
(http://www.marketwatch.com/story/why-you-should-keep-your-eyes-open-during-this-june-rally-2019-06-24)
Trump and Xi are set to meet Friday and Saturday this week at a
Group of 20 summit in Osaka, Japan, with investors looking for
signs the leaders can work out a truce in a trade war that has
raised concerns about global economic growth and corporate
earnings.
Read:How the Trump-Xi trade meeting could set the stock-market
tone for the summer
(http://www.marketwatch.com/story/how-the-trump-xi-trade-meeting-could-set-the-stock-market-tone-for-the-summer-2019-06-22)
"All the attention will be on Donald Trump and his Chinese
counterpart Xi Jinping and whether they can dial down the mood
music on trade which of late has been set at death metal levels,"
said Russ Mould, director at AJ Bell Investment, in a note. "The
outcome could help set the tone for the markets over the remainder
of the summer."
Other geopolitical concerns also remain in focus, with the U.S.
planning to impose new sanctions on Iran
(http://www.marketwatch.com/story/us-plans-new-iran-sanctions-as-europe-tries-to-defuse-tensions-2019-06-24)
despite a diplomatic push by European leaders to tone down tensions
between Washington and Iran. The U.S. has blamed Iran for attacks
on tankers near the Strait of Hormuz, while Iran last week shot
down a U.S. drone. Trump on Friday said he canceled a retaliatory
strike against Iran.
U.S. oil futures were higher Monday
(http://www.marketwatch.com/story/us-oil-extends-last-weeks-surge-as-us-readies-additional-iran-sanctions-2019-06-24),
while global benchmark Brent crude flipped between small gains and
losses.
See:Global oil 'choke point' in focus after Trump calls off
military strike against Iran: What you need to know
(http://www.marketwatch.com/story/strait-of-hormuz-oil-choke-point-in-focus-as-iran-shoots-down-us-drone-amid-rising-tensions-2019-06-20)
On Wall Street's radar
Shares of Caesars Entertainment Corp.(CZR) jumped after the
casino operator agreed to be bought out
(http://www.marketwatch.com/story/caesars-stock-soars-after-eldorado-buyout-deal-values-casino-operator-at-about-87-billion-2019-06-24)
by Eldorado Resorts Inc.(ERI) in a deal that values the casino
operator at $8.6 billion. Eldorado shares were off 7% ahead of the
opening bell.
Goldman Sachs Group Inc.'s shares (GS) were contributing about
15 points to the price-weighted Dow, while shares of aeronautics
and defense contractor Boeing Co. (BA) were adding another 15
points. A dollar move in any one of the 30 blue-chip components of
the Dow equates to a roughly 6.8-point swing.
Shares of Palatin Technologies Inc.(PTN) jumped 27% after the
Food and Drug Administration granted marketing approval
(http://www.marketwatch.com/story/palatins-stock-rockets-after-fda-ok-to-market-sexual-desire-disorder-treatment-2019-06-24)
for a treatment for hypoactive sexual desire disorder, triggering a
$60 million milestone payment.
Shares of auto maker Daimler AG(DAI.XE) fell more than 4% in
German trading
(http://www.marketwatch.com/story/daimler-issues-profit-warning-over-costly-diesel-issues-2019-06-24)
after it warned that second-quarter profits would be high by
increased charges surrounding problems with diesel vehicles from
its Mercedes-Benz brand. Daimler also downgraded its full-year
earnings forecast.
Daimler's performance weighed on Germany's DAX stock index ,
while European stocks traded mostly lower. The Stoxx 600 Europe
Index was off 0.1%.
A weak reading for a closely followed German business sentiment
index did little to soothe worries over the global economic
outlook. The Ifo business-climate index fell to 97.4 in June
(http://www.marketwatch.com/story/german-business-sentiment-continues-to-deteriorate-2019-06-24-54853020),
its lowest since November 2014, from 97.9 in May. Economists had
forecast a reading of 97.6.
(END) Dow Jones Newswires
June 24, 2019 11:20 ET (15:20 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.