Stocks eked out a gain on lighter trading volume in a very quiet session. At the close the Dow was up 8 points at 26,727. Both the S&P 500 and NASDAQ were slightly lower. It seems people are holding off until they see what happens at the G20 meeting.
This week the G20 meeting occurs in Osaka Japan with the most anticipated event at the meeting is a sit down between President Trump and President Xi. How this plays out in terms of the trade negotiations is anyone’s guess. Wall Street gurus are calling it a “binary” meeting meaning that it could go either way but given recent market action with stocks trading near all-time highs it seems “Mr. Market” is looking forward with cautious optimism.
In corporate merger news Eldorado Resorts is buying Caesar’s Casino for $17.3 billion. Eldorado opened its doors in 1973 in Reno, NV and has grown rapidly under the leadership of CEO Tom “Roll’em” Reeg and with today’s news of the buyout Eldorado (“Elderada” as John Wayne would call it) will become the largest US casino operator.
The price of gold has been on the rise lately thanks to a couple of factors. One is the US dollar which, when it rises, tends to depress the price of gold. Lately however with the Federal Reserve talking about the possibility of a rate cut in July the US dollar has begun to decline which has the effect of pushing gold higher. The other factor behind gold’s move is the trade war between the US and China. Traders and speculators have been picking up gold in case the G20 meeting between President’s Trump and Xi takes a turn for the worse. Gold today traded at $1,422 an ounce up 1.5%.