Stocks jumped on Monday as the United States and Mexico closed a new trade deal, potentially removing a source of uncertainty that had been plaguing investors for months.
The S&P 500 gained 0.8 percent to close at 2,896.74 — a record high — with materials and financials as the best-performing sectors. The Nasdaq Composite climbed 0.9 percent to an all-time high, breaking above 8,000 points for the first time, as Facebook, Amazon, Netflix and Alphabet rose. Tech’s gains led the Nasdaq to close at 8,017.90.
The Dow Jones Industrial Average rose 259.29 points to 26,049.64 as Caterpillar outperformed. Monday also marked the first time since Feb. 1 that the Dow closed above 26,000.
President Donald Trump said the deal would be called The United States-Mexico Trade agreement, leaving behind the 24-year-old NAFTA name. “The name NAFTA has a bad connotation because the United States was hurt very badly by NAFTA,” he said. Trump added that the deal with Mexico is also very helpful for farmers and manufacturers. U.S. Trade Representative Robert Lighthizer said the deal must be approved by Congress before being implemented.
Lunatic Legislators Know No Bounds in California, Brown Signs Bill Eliminating Monetary Bail
Gov. Jerry Brown on Tuesday signed sweeping legislation to eliminate cash bail in California. The change, which will take effect in October 2019, goes further than any other state in the country to remove money from pretrial detention.
“Today, California reforms its bail system so that rich and poor alike are treated fairly,” Brown said in a statement.
Under Senate Bill 10, California will replace bail with “risk assessments” of individuals and nonmonetary conditions of release. Counties will establish local agencies to evaluate any individual arrested on felony charges for their likelihood of returning for court hearings and their chances of re-arrest.
A person whose risk to public safety and risk of failure to appear is determined to be “low” would be released with the least restrictive nonmonetary conditions possible. “Medium-risk” individuals could be released or held depending on local standards. “High-risk” individuals would remain in custody until their arraignment, as would anyone who has committed certain sex crimes or violent felonies, is arrested for driving under the influence for the third time in less than 10 years, is already under supervision by the courts or has violated any conditions of pretrial release in the previous five years.