NEW YORK (AP) — U.S. manufacturers, basic materials makers and car companies are rising Monday after the U.S. and Canada agreed to a new trade deal that also includes Mexico. General Electric is surging after it replaced CEO John Flannery, who held that title for a little more than a year. Tesla is jumping after company founder Elon Musk agreed to a settlement with regulators that will allow him to remain CEO of the electric car maker.
KEEPING SCORE: The S&P 500 index climbed 19 points, or 0.7 percent, to 2,933 as of 10 a.m. Eastern time. The Dow Jones Industrial Average rose 251 points, or 1 percent, to 26,710. The Nasdaq composite jumped 55 points, or 0.7 percent, to 8,102. The Russell 2000 index of smaller-company stocks inched up 1 point, or 0.1 percent, to 1,698.
Mexico’s main stock index rose 1 percent and Canada’s rose 0.5 percent.
AFTER NAFTA: The new trade deal, dubbed the United States-Mexico-Canada Agreement, gives U.S. farmers greater access to the Canadian dairy market. But it keeps a NAFTA dispute-resolution process that the U.S. wanted to eliminate and offers Canada protection if the U.S. goes ahead with plans to impose tariffs on cars, trucks and auto parts imported into the United States.
Mexico and the U.S. announced a trade agreement in late August and experts expected Canada would eventually join the pact, as Canada is the U.S.’ second-largest trade partner and a deal without Canada would have affected the supply lines of companies in numerous industries.
Dairy producer Dean Foods gained 3 percent to .31. General Motors jumped 1.4 percent to .15 and Ford climbed 1.6 percent to .40.
Industrial companies surged. Honeywell rose 1 percent to .23 and Boeing advanced 1.4 percent to .99. Among materials companies, DowDuPont added 1.9 percent to .52 and Praxair jumped 3.8 percent to .87.
GE CEO O-U-T: General Electric ousted Flannery and said H. Lawrence Culp will replace him. Flannery took over from Jeffrey Immelt in 2017 and has worked to restructure conglomerate as it tried to return to its industrial roots. But the stock has continued to tumble. In September, the stock fell to a nine-year low after GE said its marquee gas turbine was flawed, which forced the shutdown of two power plants. The company is taking a billion charge related to its power business and warned Monday that it will miss its annual profit target.
GE stock jumped 12 percent to .65.
ELON’S NOT GONE: Tesla stock bounced back from a sharp loss Friday. It gained 16.8 percent to .13 after Musk agreed to give up the chairman’s role for at least three years, while Tesla will appoint two new, independent directors to its board. The stock plunged 14 percent Friday, its worst loss in almost five years, after the Securities and Exchange Commission said Musk misled officers in August with a tweet saying he had secured the funding to take Tesla private.
In a court filing, the SEC said it wanted to bar Musk from serving as an officer or director of a publicly traded company and called his actions securities fraud. Musk and Tesla are each paying million to resolve the case.
BONDS: Bond prices fell. The yield on the 10-year Treasury note rose to 3.08 percent from 3.05 percent.
CURRENCIES: The dollar rose to 113.91 yen from 113.58 yen. The euro dipped to .1608 from .1610. The Canadian dollar fell to 1.2818 from 1.2922.
OVERSEAS: Germany’s DAX added 0.7 percent while the CAC 40 in France advanced 0.3 percent. Britain’s FTSE 100 fell 0.3 percent. Italy’s FTSE MIB rose 0.3 percent as the country’s finance minister tried to reassure other European nations about the new government’s plan to increase its spending.
Japan’s benchmark Nikkei 225 gained 0.5 percent and South Korea’s Kospi gave up 0.2 percent. Markets in Hong Kong and the Chinese mainland were closed for National Day holidays.
ENERGY: Benchmark U.S. crude picked up 0.3 percent to .48 a barrel in New York. Brent crude, used to price international oils, added 0.5 percent to .13 per barrel in London.
AP Markets Writer Marley Jay can be reached at http://twitter.com/MarleyJayAP His work can be found at https://apnews.com/search/marley%20jay