Major US stock indexes closed trading mixed, as investors evaluated new reports on trade negotiations between the US and China.

Reuters reported that China insisted that US President Donald Trump abolish additional tariffs on Chinese goods worth about $ 125 billion, introduced in September, as part of the "first phase" of the trade deal. The Chinese publication South China Morning Post said today that China needs a more “firm US commitment to abolish tariffs” for Xi Jinping to visit the United States to sign the “first phase." According to sources, Beijing is worried that it may have made too many concessions and wants something from Washington to “make the deal more balanced.”

Market participants also drew attention to several important macro reports. The US Department of Commerce said the US trade deficit narrowed in September, as imports fell more than exports. According to the report, the US international trade deficit narrowed to $ 52.5 billion in September from $ 55.0 billion in August. Economists had expected a deficit to be reduced to $ 52.2 billion from the $ 54.90 billion reported a month earlier. The deficit narrowed as imports fell 1.7% to $ 258.4 billion, while exports fell 0.9% to $ 206.0 billion.

A report by the Institute for Supply Management (ISM) indicated accelerated growth in US service activity in October. According to the report, the ISM services business activity index rose to 54.7 in October from 52.6 in September. Economists had expected the indicator to rise to 53.4.

A job vacancy and labor turnover survey (JOLTS) published by the US Bureau of Labor Statistics showed that in September the number of vacancies fell to 7.024 million from 7.301 million in August (revised from 7.051 million). Analysts had expected that the number of vacancies would decrease to 7.211 million. The level of vacancies decreased by 0.2 pp and amounted to 4.4%.

DOW components completed bidding in different directions (16 in the red, 14 in the red). The biggest gainers were Walgreens Boots Alliance, Inc. (WBA; + 2.72%). Outsider were shares of Visa Inc. (V; -1.43%).

S&P sectors completed trading mixed. The largest decline was shown by the utilities sector (-0.8%). The raw materials sector grew the most (+ 0.6%).

At the time of closing:

Dow 27,492.63 +30.52 +0.11%

S&P 500 3,074.62 -3.65 -0.12%

Nasdaq 100 8,434.68 +1.48 +0.02%

U.S. stock-index futures rose on Tuesday on increased hopes of  a potential U.S.-China trade deal as both sides consider more rollbacks in tariffs.

Global Stocks:

(company / ticker / price / change ($/%) / volume)

Facebook (FB) upgraded to Buy from Outperform at Daiwa Securities; target raised to $250

Arconic (ARNC) reported Q3 FY 2019 earnings of $0.58 per share (versus $0.32 in Q3 FY 2018), beating analysts’ consensus estimate of $0.52.

The company’s quarterly revenues amounted to $3.559 bln (+1.0% y/y), generally in line with analysts’ consensus estimate of $3.586 bln.

The company also issued guidance for FY 2019, projecting EPS of $2.07-2.11 (compared to its prior guidance of $1.95-2.05 and analysts’ consensus estimate of $2.05) and revenues of $14.15-14.35 bln (compared to its prior guidance of $14.3-14.6 bln and analysts’ consensus estimate of $14.38 bln).

ARNC fell to $28.50 (-0.97%) in pre-market trading.

Allergan (AGN) reported Q3 FY 2019 earnings of $4.25 per share (versus $4.25 in Q3 FY 2018), beating analysts’ consensus estimate of $4.20.

The company’s quarterly revenues amounted to $4.026 bln (+2.9% y/y), beating analysts’ consensus estimate of $3.881 bln.

The company also issued guidance for FY 2019, projecting EPS of >$16.55 versus analysts’ consensus estimate of $16.74 and revenues of $15.6-15.8 bln compared to its prior guidance of $15.4-15.6 bln and analysts’ consensus estimate of $15.58.

AGN rose to $179.74 (+0.53%) in pre-market trading.

Uber (UBER) reported Q3 FY 2019 loss of $0.68 per share, better than analysts’ consensus estimate of -$0.84.

The company’s quarterly revenues amounted to $3.813 bln (+29.5% y/y), beating analysts’ consensus estimate of $3.685 bln.

The company also raised FY 2019 adj. EBITDA guidance by $250 mln to ($2.9)-($2.8) bln.

UBER fell to $29.13 (-6.27%) in pre-market trading.