Stocks Mixed After China Promised Cuts to Tariffs

Stocks opened mixed on Tuesday, after strong gains from the previous session, after China said it will reduce levies on automakers and car parts.

The Dow Jones Industrials faded 13.28 points to 25,000.01, with General Electric as the best-performing stock in the index.

The S&P 500 gained 3.28 points to 2,735.21, as tech rose half a percentage point.

The NASDAQ gained 7.18 points to 7,401.22

In corporate news, shares of Lowe’s rose 3.3% after the company announced that J.C. Penney CEO Marvin Ellison would become its new chief executive. The news also sent J.C. Penney’s stock down 7.2%.

The Chinese Finance Ministry said tariffs on certain vehicles will come down to 15% from as much as 25% while levies on some parts will be brought down to 6% effective July 1.

Shares of Ford, General Motors and Tesla all rose on the news, gaining about 1 percent Tuesday.

The announcement by China comes after Treasury Secretary Steven Mnuchin told the media on Monday the U.S. has made “very meaningful progress” with China on trade matters, noting: “Now it’s up to both of us to make sure that we can implement it.”

Prices for the benchmark for the 10-year U.S.Treasury were slightly lower, raising yields to 3.07% from Monday’s 3.06%. Treasury prices and yields tend to move in opposite directions.

Oil prices were unchanged at $72.35U.S. a barrel.

Gold prices gained $1.40 at $1,292.30U.S. an ounce.

This article provided by NewsEdge.