Wall Street opens with gains as investors’ sentiment improves

The US Stocks market opened Tuesday with gains as investors welcomed the new trade agreement between México and the United States and they are hoping Canada will be quickly added to the new-NAFTA deal. Market sentiment is overall positive.

S&P 500 daily chart August 28

S&P 500 daily chart August 28

Governments of the United States and Mexico announced Monday they reached an agreement to replace NAFTA and Canada would be quickly added to the deal. The new NAFTA would be named “The United States-Mexico Trade Agreement,” and will last 16 years with periodical reviews every six years.

Investors are taking the Mexico deal as a sense of framework for other agreements with China, the European Union or other countries. If Mexico was willing to comply with US government demands, they are thinking Trump can make similar deals with other countries, improving trade conflicts sensations.

The Dow Jones Industrial Average is rising 55.78 points or 0.21% to its current 26,105.42; The DJIA is off its highs of the day. In the last five trading sessions, the index is 1.0% positive.

The S&P 500 is also off of its highs but still advancing 4.71 or 0.16% to trade above the 2,900 level for the first time. The S&P is posting 1.23% gains in the last five sessions.

The NASDAQ Composite is adding 15.61 points or 0.19% to consolidate levels above 8,000 at 8,033.51. During the last five trading days, the NASDAQ has gained 2.2%.

The majority of sectors are currently in the negative field with only four components posting gains. The leader of the day is the real estate sector with an increase of 0.28%, followed by healthcare companies with 0.04% and energy and materials sectors with a 0.02% gain both.

On the negative side, consumer staples is the worse performer with a decline of 0.25%; following are the utilities and telecommunication services with a 0.24% decline each one.

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