Stocks jump on NAFTA hopes

Mexico’s
Economy Minister Guajardo, Canada’s Foreign Minister Freeland and
U.S. Trade Representative Lighthizer arrive for a meeting during
the third round of NAFTA talks in Ottawa
Thomson Reuters

Stocks jumped Monday after the US and Mexico settled a key trade
dispute surrounding a modernized NAFTA. The dollar
fell, and Treasury yields jumped. 

Here’s the scoreboard:

Dow Jones industrial
average: 26,055.03 +264.68
(+1.03%)

S&P
500: 2,895.98 +21.29
(+0.74%)

Nasdaq
Composite: 8,017.40 +71.43
(+0.90%)

1. The
   US and Mexico reached a preliminary trade deal that he
   signaled could overhaul NAFTA. Trump claimed a
   new agreement would be called the “United States-Mexico Trade
   Agreement” and threatened to hit Canada with auto tariffs if it
   did not join the two countries. But President Enrique Peña
   Nieto pushed back on threats to exclude Canada, which is
   expected to begin talks with administration officials right
   away.
2. The Trump administration held a final round of hearings
   on proposed 25% tariffs targeting an additional $200 billion
   worth of Chinese imports.
   Companies testified last week that another tranche of
   tariffs, which would almost certainly include
   more consumer products than the last, would raise costs and
   reduce access to foreign markets. 
3. In efforts to make up for losses from Trump’s tariffs,
   the Department of Agriculture said it would pay farmers up to
   $4.7 billion in taxpayer funds. Soybean farmers — who
   have seen their biggest market compromised in the US-China
   trade war — are poised to get a majority of the payout at up to
   $3.6 billion,
   the Wall Street Journal first reported.
4. Volkswagen only
   recently started taking steps to prevent an incident like its
   2015 emissions scandal, a Justice Department-appointed
   lawyer said
   in a report. Larry
   Thompson, assigned to monitor the German carmakerfollowing its civil settlement with the
   US, cited a lack of transparency from the
   company after
   it rigged its cars to cheat emissions tests.

And a look at the upcoming economic calendar:

• Consumer spending numbers and GDP revisions are out in the
  US.