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European stock markets pushed higher on Monday on news of a historic trade deal between Canada and the United States. Stoxx Europe 600 Index rose by 0.4% and closed at 384.64. The French CAC 40 Index also crept up by 0.4% and closed at 5,516.73, while the German DAX Index advanced by 0.9% to 12,354.26. UK's FTSE 100 Index bucked the uptrend and edged down by 0.1% to 7,501.89.
U.S. stocks closed mostly higher amid easing North American Free Trade Agreement. The Dow Jones Industrial Average gained 0.7%, to 26,651.21 and the S&P 500 advanced by 0.4%, to 2,924.59. The Nasdaq Composite Index meanwhile, reversed direction to fall 0.1%, to 8,037.30.
GE appoints new CEO
General Electric Co ousted Chief Executive Officer John Flannery in a surprise move on Monday, replacing him with outsider and board member Larry Culp, and said it would take a roughly $23 billion charge to write off goodwill in its power division, primarily from a large 2015 acquisition. GE’s board was unhappy with the pace of the company’s turnaround under Flannery and was persuaded to seek a new CEO however GE will not be changing its announced breakup plan, which calls for spinning off healthcare and shedding its stake in oil services company Baker Hughes.
GE shares jumped 7 percent to close at $12.09 as investors bet that Culp could re-energize the GE brand and more quickly transform its portfolio. The stock was the top percentage gainer on the S&P 500. The shares had more than halved since Flannery, a three-decade GE veteran, became CEO in August 2017 to replace Jeff Immelt, who had led GE since 2001. With a market capitalization below $100 billion as of Friday, GE was worth less than a fifth of its peak value a generation ago.
Tesla keeps Musk and shares jump
Shares of Tesla Inc jumped by almost 18 percent on Monday as Chief Executive Elon Musk settled a lawsuit that had threatened to force him out and said a surge in third-quarter production had driven it to the verge of profitability. The electric carmaker’s shares sank last week after the U.S. Securities and Exchange Commission accused Musk of securities fraud and sought to ban him from company leadership, pointing to a long drawn-out fight that could have undermined Tesla’s operations and ability to raise capital.
Instead, under a settlement announced at the weekend, Tesla and Musk will pay $20 million each to the regulator and Musk will step down as chairman but stay as CEO, keeping one of America’s best-known corporate figures in place. Tesla fans cheered the signs of a manufacturing jump while business analysts said the company needed to fulfill the spirit of the settlement by appointing a strong independent chair and new directors.
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