Stocks power higher after a dreadful week; Dow jumps 410
NEW YORK (AP) — Stocks powered higher Monday, sending the Dow Jones industrial average up 410 points, as the market clawed back more of its massive losses from the previous two weeks. Apple jumped 4 percent and led a rally in technology companies, while industrial companies, banks, and consumer-focused companies like retailers also rose. Netflix and Amazon surged again as stocks that led the market higher in 2017 recovered more of the ground they lost recently. Energy companies got some relief as oil prices turned higher. All of that helped stocks build on the market's gains from late Friday. Some market watchers say the recent bout of turbulence may not be over.
AP Analysis: Trump's economic policy rooted in debt
WASHINGTON (AP) — One clear principle runs through President Donald Trump's emerging economic policy: Debt is good. When defending a tax plan or laying out his budget, the man who once called himself "the king of debt" is trying to persuade Americans there's no price to pay for running trillion dollar budget deficits over the next few years. Stronger economic growth will permanently follow the borrowing spree, officials argue, even as many economists and investors already warn about what could happen when the debt becomes due. The White House budget plan released Monday is the latest example of the Trump principle.
Trump's $4.4 trillion budget moves deficit sharply higher
WASHINGTON (AP) — President Donald Trump unveiled a $4.4 trillion budget for next year that heralds an era of $1 trillion-plus federal deficits and — unlike the plan he released last year — never comes close to promising a balanced ledger even after 10 years. The budget submitted Monday shows the growing deficits despite major cuts for domestic programs, largely because of last year's tax overhaul, which is projected to cause federal tax revenue to drop. This budget does not yet reflect last week's two-year bipartisan $300 billion pact that wholly rejects Trump's plans to slash domestic agencies. The president's budget proposes dramatic cuts to a wide range of domestic agencies from the Departments of Labor and Interior to the Environmental Protection Agency and the National Science Foundation.
Trump threatens 'tax' on countries that exploit US trade
WASHINGTON (AP) — President Donald Trump says he's planning to announce a "reciprocal tax" on countries that take advantage of the United States on trade, with more details to be released later this week. Trump is noting his plans for the so-called tax in a meeting with state and local leaders. He says they'll be hearing about it during the week and the coming months. Trump is also addressing the ongoing negotiations over the North American Free Trade Agreement and says he's hopeful it will be successful. The president is complaining that Canada doesn't treat the U.S. well. Trump says the U.S.
Trump says 'OK with me' if plan to rebuild roads founders
WASHINGTON (AP) — President Donald Trump sent Congress a sweeping plan Monday to rebuild the nation's depleted roads and bridges — then immediately raised doubts about how committed he was to delivering on that campaign promise. "If you want it badly, you're going to get it," Trump told state and local officials during a meeting at the White House. "And if you don't want it, that's OK with me too." Trump suggested that his proposal — aimed at spurring $1.5 trillion in spending over a decade — was not as important to him as other recent administration efforts to cut taxes and boost military spending.
General Dynamics to buy CSRA for almost $7 billion
FALLS CHURCH, Va. (AP) — The defense contractor General Dynamics will spend almost $7 billion to acquire CSRA with the Trump administration pushing defense spending aggressively higher. Shares of CSRA Inc., an internet technology company, soared 31 percent in midday trading. As part of a $4.4 trillion budget for next year unveiled Monday, President Donald Trump requested a record $686 billion for the Pentagon, a 13 percent increase from the 2017 budget enacted last May. "We're going to have the strongest military we've ever had, by far," Trump said. "In this budget we took care of the military like it's never been taken care of before." Next year, the figure is expected to jump to $716 billion.
Interior to replace Obama-era rule on methane emissions
WASHINGTON (AP) — The Interior Department says it is replacing an Obama-era regulation aimed at restricting harmful methane emissions from oil and gas production on federal lands. A rule being published in the Federal Register this week will replace the 2016 rule with requirements similar to those in force before the Obama administration changed the regulation. Interior had previously announced it was delaying the Obama-era rule until January 2019, arguing the rule was overly burdensome to industry. Officials said the delay would allow the federal Bureau of Land Management time to review the earlier rule while avoiding tens of millions of dollars in compliance costs to industry.
The Standard & Poor's 500 gained 36.45 points, or 1.4 percent, to 2,656. The Dow climbed 410.37 points, or 1.7 percent, to 24,601.27. The Nasdaq composite advanced 107.47 points, or 1.6 percent, to 6,981.96. The Russell 2000 index of smaller-company stocks rose 13.15 points, or 0.9 percent, to 1,490.98.
Benchmark U.S. crude gained 9 cents to $59.29 a barrel in New York. Brent crude, used to price international oils, lost 20 cents to $62.59 a barrel in London. Wholesale gasoline fell 2 cents to $1.68 a gallon. Heating oil fell 2 cents to $1.84 a gallon. Natural gas slid 3 cents to $2.55 per 1,000 cubic feet.