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North Korea Summit, Fed Decision Loom: Stock Market Higher Midday

The North Korea summit between President Trump and Kim Jong Un garnered a lot of headlines in the stock market Monday. Major stock indexes were flat to slightly higher near midday as Nasdaq 100 names like Tesla (TSLA) and Electronic Arts (EA) outperformed.

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The Dow Jones industrial average edged higher as Dow components UnitedHealth Group (UNH), Verizon (VZ) and Home Depot (HD) outperformed with gains of close to 1%. The S&P 500 and Nasdaq composite showed gains of around 0.3%. Volume on the NYSE and Nasdaq was tracking close to Friday’s levels.

After breaking out of a downtrend last week, shares of Tesla rallied nearly 4%. Electronic Arts, meanwhile, rallied 1.7% to another all-time high ahead of the start of E3 in Los Angeles. E3 is the premier event for computer video games and related products.

North Korea Summit

The summit in Singapore gets underway today at 9 p.m. ET today. It comes after a contentious G-7 meeting over the weekend where Trump refused to endorse a joint G-7 statement that called for a reduction in tariffs.

In stock market results today, Envision Healthcare (EVHC) gained 2.5% to 44.76. Private-equity titan KKR (KKR) will buy the company for 46 a share. Envision staffs hospitals and runs surgery centers in the U.S.

Shares of Restoration Hardware (RH) looked poised to extend its winnings streak to seven sessions. Shares were up 3% ahead of its earnings report after the close. The high-end home furnishings retailer was featured over the weekend in the latest Earnings Preview column, which highlights potential options trades around earnings.

Small cap KMG  Chemicals (KMG) was off session highs but still rallied 1%. Results are also due after the close. It’s still in buy range from a 69.35 entry.

Match Group Rises On Upgrade

Inside the IBD 50, Match Group (MTCH) jumped 2.5%, helped by an upgrade from Jefferies to buy from hold and a raised price target to 50 from 40. Shares of Match plunged 22% on May 1 after Facebook (FB) unveiled a dating app.

The 10-year Treasury yield added 1 basis point to 2.95%. The two-day Federal Reserve meeting starts Tuesday and a decision on interest rates is due Wednesday at 2 p.m. ET. The Federal Open Market Committee is widely expected to raise the federal funds rate by a quarter point to a range of 1.75% to 2%. According to the CME Group FedWatch tool, the chances for a rate hike are at 96%.

The path of interest-rate hikes for the rest of the year is a little more uncertain. The market currently sees a 70% chance of a quarter-point at the Aug. 1 meeting.

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