"Tesla's rating is out of proportion"
new York The expected signing of the first phase of a trade agreement between the US and China on Monday caused a good mood among US investors. The Dow Jones index of standard values closed 0.3 percent higher at 28,907 points.
The technology-heavy Nasdaq advanced one percent to 9273 points. The broad S&P 500 gained 0.7 percent to 3,288 points. Nasdaq and S&P closed at record levels.
The USA and China plan to sign the first part of a trade agreement on Wednesday, which is to settle the customs dispute between the two largest economic powers in the world. However, uncertainty still persisted among some investors.
“Not only that we don't know any exact details yet; there are also concerns about the translation of the contract, ”said Randy Frederick, responsible for trading at financial services provider Charles Schwab.
Investors also eagerly awaited the upcoming reporting season in the United States. "Then it will become clear whether the high valuations on the stock market are justified," said portfolio manager Thomas Altmann from the investment advisor QC Partners. Especially the US banks are hoping for positive surprises. They open their books from Tuesday. Experts interviewed by data provider Refinitiv expect the profits of the 500 largest companies to have declined by an average of 0.6 percent in the past quarter. That would be the second decline in a row.
Look at the individual values
Hexcel and Woodward: The shares of Boeing suppliers Hexcel and Woodward rose 9.6 and 4.8 percent, respectively. The two companies merge and the merger is worth $ 6.43 billion.
Alphabet: The Google mother's papers were just slightly up at $ 1429.82. Should they climb above the $ 1450 mark, Alphabet would climb into the small group of corporations worth over a trillion dollars. The other four companies that have succeeded are Apple, Amazon, Microsoft and Saudi Aramco.
Tesla: The shares of the electric car pioneer rose by 5.3 percent and cost more than $ 500 for the first time. Among other things, they benefited from the fact that the Chinese government wants to continue promoting electric cars this year. There were no “significant cuts”, state media reported over the weekend. In addition, several brokerage firms raised their price targets significantly in some cases.
Beyond Meat: The titles continued to soar from the previous week. After a jump of 27.4 percent in the course of the past week, the papers of the provider vegan burger bulettes gained another 19 percent. Most recently, there was a boost that McDonald's Beyond Meat Burger plans to offer in 52 Canadian branches, almost twice as many as before.
More: Saudi Aramco plans to sell 450 million additional shares. This brings the IPO to a record $ 29.4 billion.