Stocks cut gains after Trump tweets decision on Iran deal coming tomorrow

Stocks gave back most of their gains on Monday after President Donald Trump tweeted he will be announcing his decision on the deal on Tuesday. The tweet also knocked the wind out of energy stocks, which had been the main driver in the stock market.

 

 

 

 

 

The Dow Jones industrial average traded just 8 points higher after rising as much as 200 points, while the S&P 500 held just above breakeven. The Nasdaq composite traded 0.5 percent higher after rising more than 1 percent.

“Oil dove pretty good on that, then energy stocks led us off the highs,” said Dave Lutz, head of ETF trading at JonesTrading. Crude fell in after-hours trading after settling 1.5 percent higher.

The Energy Select Sector SPDR Fund (XLE) traded just 0.2 percent higher. Earlier in the session, it traded about 2 percent higher.

A trader works on the floor of the New York Stock Exchange (NYSE) in New York.

Brendan McDermid | Reuters
A trader works on the floor of the New York Stock Exchange (NYSE) in New York.

Energy stocks got a boost from rising oil prices earlier, as crude hit highs not seen since late 2014. Prior to the U.S. open, U.S. crude rose above $70 per barrel, while Brent hit $75.89 — a level not seen since November 2014.

“The oil market has turned a corner. Demand is rising and supply is getting tighter,” said Peter Cardillo, chief market economist at Spartan Capital Securities. “Just based on fundamentals, we’re looking at $72-to-$75 per barrel.”

Nonetheless, stocks added to the strong gains seen in the previous session. On Friday, the major averages jumped more than 1 percent as shares of Apple hit an all-time high on news that Warren Buffett‘s Berkshire Hathaway bought 75 million shares of the company in the first quarter. Apple gained nearly 1 percent on Monday.

In corporate news, Nestle agreed to pay $7.15 billion to Starbucks to for the rights to sell the coffee chain’s products globally. Starbucks shares briefly rose before trading slightly lower.

Meanwhile, Blackstone reached a deal with Gramercy Property Trust to buy it for $7.6 billion in cash. Gramercy’s stock shot up more than 15 percent.

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