US stocks edged higher Tuesday as technology shares extended recent gains while US Treasury yields fell on safe-haven buying after Italy’s new prime minister outlined new economic policies that could add to the nation’s debt. The Dow Jones industrials and S&P were up 0.1 percent each while the Nasdaq was 0.4 percent higher. Nasdaq once again closed at a record high.
Earlier in the day, stocks were lower after White House economic adviser Larry Kudlow said President Donald Trump may seek separate talks with Canada and Mexico in a bid to get individual trade deals with the two countries. Mexico said it will impose tariffs of 15 percent to 25 percent on US steel products and on some agricultural goods from pork to potatoes, in retaliation against Trump’s own metals tariffs.
The “FAANG” stocks — Facebook, Amazon, Apple, Netflix and Alphabet — advanced. Twitter advanced after an announcement that the company would join the benchmark S&P. Netflix rose after entering the S&P 100 index. Shares of US packaged food companies fell on Mexico's tariffs with Kellogg and General Mills retreating. AK Steel and US Steel were down. Bank of America and Citibank declined. Amgen slid.
The ISM said its non-manufacturing index climbed to 58.6 in May from 56.8 in April.
These data reflect observations at 4:00 PM US ET. Gold was up US$3.70 to US$1,301.00. Copper futures were up 2.49 percent to US$3.21. WTI spot crude was up 58 US cents to US$65.33. Dated Brent spot crude was down 26 US cents to US$75.03. The US dollar was up against the Canadian and Australian dollars. It retreated against the yen, euro, pound and Swiss franc. The Dollar Index was down 0.1 percent. The yield on the US Treasury 30 year bond was down 2 basis points to 3.07 percent while the 10 year note was down 3 basis points to 2.91 percent.