The markets were higher today as news from the White House showed that President Trump has moved back the March 1st trade deadline with China, as talks are going well. This sent the markets higher and ultimately closed higher on the day, albeit at the lower end of the days' range. The Dow 30 was higher by 62, the S&P 500 closed higher by 3, and the Nasdaq added 26 on the day. The Dow 30 is now less than 3% from hitting all-time highs.
Sector News
Oil prices sold off today after President Trump told OPEC via Twitter that oil prices are too high. Oil has enjoyed a nice gain on the year, but still remains lower over the year. Just this year oil is higher by 20% still thanks to cutbacks from OPEC as well as Venezuela and Iranian sanctions.
Bank stocks were higher today, officially challenging the 20-day moving average on the big bank sector ETF (NYSE: XLF). For the year the banks have recovered nicely from their December selloff with a double-digit return. All of December's losses have now been erased and the XLF is back to its sideways range seen last October and November.
Stock News
GE (NYSE: GE) shares were sharply higher on the day as the company announced the most recent adjustment in their restructuring plan. The company announced that it will sell its drug division to Danaher (NYSE: DHR) for $21.4 billion. GE plans to use the roughly $21 billion in cash to reduce debt and strengthen the balance sheet. The deal should be done by the end of the year.
Barrick Gold (NASDAQ: GOLD) officially made their hostile bid for Newmont Mining (NYSE: NEM) in an all-stock tender offer of $18 billion. Shares of both companies traded in a wider range today due to the news.
Berkshire Hathaway (NYSE: BRK.B) shares were higher today following earnings of $2.32 per share, which were nicely above the $1.85 expected. Revenue was lower than expected and and in his annual letter to shareholders Buffett cited the challenges in trying to find a "whale-sized deal." He mentioned he had one on the line, but it got away.