Stocks closed marginally lower yesterday after being down more than 2% early in the trading session. The market staged a comeback after the Chinese said they will in fact still travel to the U.S. to continue negotiations this week.
U.S. Trade Representative Robert Lighthizer said the U.S. will raise tariffs on China to 25% from 10% on $200 billion worth of goods on Friday morning. Lighthizer reportedly told reporters at a briefing that China was "reneging" on previous commitments in talks and talked of "erosion in commitments," though he didn't say in which areas China backtracked. Lighthizer said he did expect talks to continue with Chinese officials on Thursday and Friday.
The U.S. initial public offering market is entering its biggest week since 2015, with at least 15 deals expected to be priced, including that of Uber, the biggest IPO since Alibaba in 2014 and the biggest U.S. company going public since Facebook in 2012. Uber is expected to price its much anticipated offering on Thursday, just weeks after its ride-sharing rival Lyft, which has had a rocky start as a public company. Lyft’s shares have fallen 15% from their IPO price, given widespread concerns about the company’s ability to become profitable.
Anadarko Petroleum announced that its board had unanimously decided that an acquisition bid from Occidental Petroleum was a better deal than an earlier bid from Chevron. Chevron has until the end of the week to alter its bid or make another proposal, and stands to receive a $1 billion termination fee. Anadarko shares dipped slightly in late trading after the announcement, but are up more than 60% in the past month as the acquisition talks have been public.
With Northwest Quadrant Wealth Management, I'm Tyler Simones.