US close: Stocks jump on the back of trade deal with Mexico

Investors pushed stocks higher ahead of the Memorial Day weekend, with automobile-related sectors at the head of the pack after the US and Mexico inked a trade deal that will substitute the North American Free Trade Agreement.

Commenting on the day's action, Jasper Lawler, director of Research at LCG, told clients: "If the deal with Mexico is a sign of things to come, emerging markets are more attractive from a valuation standpoint- but the US still has all the momentum. There is clearly bemusement amongst many economists that the rising tariffs are not causing greater concern for US investors.

"We think, from the beginning it has been clear investors believe there can only be one winner any these disputes and that is the US. While emerging markets, including China have fallen into bear market territory, the record US bull market presses onwards."

By the end of trading, the Dow Jones Industrial was ahead by 1.01% or 259.29 points at 26,049.64, alongside a gain of 0.91% or 71.92 points for the Nasdaq Composite that saw it rise past the 8,000-point threshhold for the first time ever to finish at 8,017.90.

The S&P 500 meanwhile ended 0.77% or 22.05 points higher for the day a 2,896.74.

From a sector standpoint, the best performing areas of the market were: Tires (2.79%), Auto Parts (2.66%) and Durable Household Products (2.54%) and Automobiles (2.45%).

In parallel, the yield on the benchmark 10-year US Treasury note was two basis points higher to 2.85%.

Under the terms of their revised trade agreement, the US and Mexico agreed to increase the proportion of all automotive content from the region from the 62.5% laid out in NAFTA to 75%.

The new deal also requires that all production workers earn at least $16 an hour.

The revised framework will be subject to an automatic review after six years, but still needed to be approved by Congress.

There were no major economic releases in the States on Monday.

Dow Jones - Risers

Goldman Sachs Group Inc. (GS) $242.60 3.19%
Caterpillar Inc. (CAT) $142.04 2.77%
Dowdupont Inc. (DWDP) $70.82 2.31%
JP Morgan Chase & Co. (JPM) $116.71 1.77%
Exxon Mobil Corp. (XOM) $80.39 1.66%
United Technologies Corp. (UTX) $135.36 1.50%
3M Co. (MMM) $208.33 1.48%
Intel Corp. (INTC) $48.35 1.45%
Boeing Co. (BA) $353.78 1.25%
American Express Co. (AXP) $107.05 1.22%

Dow Jones - Fallers

Pfizer Inc. (PFE) $41.58 -1.93%
Johnson & Johnson (JNJ) $134.91 -0.76%
Walmart Inc. (WMT) $94.51 -0.70%
Merck & Co. Inc. (MRK) $68.99 -0.07%
Procter & Gamble Co. (PG) $83.44 0.10%
Coca-Cola Co. (KO) $45.68 0.11%
Nike Inc. (NKE) $82.65 0.24%
Walgreens Boots Alliance, Inc. (WBA) $69.44 0.33%
Home Depot Inc. (HD) $201.96 0.34%
Walt Disney Co. (DIS) $112.33 0.36%

S&P 500 - Risers

Kansas City Southern (KSU) $119.05 4.70%
Endo International Plc (ENDP) $16.11 3.67%
Morgan Stanley (MS) $49.89 3.64%
Goodyear Tire & Rubber Co. (GT) $24.38 3.39%
Borg Warner Inc. (BWA) $45.91 3.38%
Whirlpool Corp. (WHR) $130.80 3.32%
Mosaic Company (MOS) $30.61 3.27%
Regeneron Pharmaceuticals Inc. (REGN) $388.44 3.22%
Ford Motor Co. (F) $9.99 3.20%
Goldman Sachs Group Inc. (GS) $242.60 3.19%

S&P 500 - Fallers

GameStop Corp. (GME) $14.70 -11.12%
Signet Jewelers Ltd (SIG) $58.44 -5.28%
Chipotle Mexican Grill Inc. (CMG) $495.50 -4.82%
Under Armour Inc. Class A (UAA) $20.62 -4.09%
Bed Bath & Beyond Inc. (BBBY) $18.27 -3.64%
Kohls Corp. (KSS) $78.85 -2.49%
Nordstrom Inc. (JWN) $60.59 -2.37%
Tractor Supply Company (TSCO) $86.54 -2.30%
EQT Corp. (EQT) $49.99 -2.25%
Intuit Inc. (INTU) $211.97 -2.15%

Nasdaq 100 - Risers

JD.com, Inc. (JD) $32.67 4.04%
Align Technology Inc. (ALGN) $381.87 3.88%
Incyte Corp. (INCY) $72.36 3.25%
Regeneron Pharmaceuticals Inc. (REGN) $388.44 3.22%
Asml Holdings N.V. (ASML) $208.59 2.76%
Micron Technology Inc. (MU) $52.07 2.70%
Applied Materials Inc. (AMAT) $43.75 2.39%
Lam Research Corp. (LRCX) $176.21 2.17%
Alexion Pharmaceuticals Inc. (ALXN) $119.97 2.10%
NetEase Inc. Ads (NTES) $211.78 2.07%

Nasdaq 100 - Fallers

Intuit Inc. (INTU) $211.97 -2.15%
Autodesk Inc. (ADSK) $154.63 -1.63%
Tesla Inc (TSLA) $319.27 -1.10%
Ross Stores Inc. (ROST) $94.26 -0.87%
Fastenal Co. (FAST) $59.02 -0.77%
Costco Wholesale Corp. (COST) $230.03 -0.54%
Paychex Inc. (PAYX) $72.63 -0.49%
Take-Two Interactive Software Inc. (TTWO) $133.37 -0.48%
Dollar Tree Inc (DLTR) $93.07 -0.42%
Fiserv Inc. (FISV) $79.71 -0.40%