The main US stock indices fell slightly, as investors assessed mixed quarterly results of US companies and conflicting reports on the prospects of a trade deal between the US and China.

The Chinese publication South China Morning Post (SCMP) announced in the morning that Chinese President Xi Jinping and US President Donald Trump will meet on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in Santiago (Chile) on November 17 to sign an interim trade agreement, “If everything goes smoothly.” This publication was informed by an informed source. However, later Reuters reported that the signing of the phase-1 trade agreement may not take place at the summit in Chile. As a source in the administration told the agency, the fact that the deal will not be signed simply means that it takes more time to move forward.

Market participants also focused on Conference Board data, which showed that consumer confidence in the United States unexpectedly fell in October amid household fears about short-term business prospects and employment prospects. According to the Conference Board report, the consumer confidence index fell to 125.9 this month from an upwardly revised 126.3 in September. It was previously reported that the index was 125.1 in September. Economists had forecast an increase to 128.0 in October.

It also became known that contracts for the purchase of previously owned houses grew more than expected in September, suggesting that the housing market is gaining momentum due to lower mortgage rates, although limited supply remains a limiting factor. According to the National Association of Realtors, the pending home sales index, based on contracts signed last month, rose 1.5% to 108.7. Economists predicted that in September the index would increase by 0.9%. In annual terms, pending home sales increased 3.9% in September.

Investors also expect the announcement of the results of the October meeting of the Fed. The central bank is expected to cut interest rates by 25 basis points tomorrow. This will be the third Fed rate cut this year.

Most of the DOW components completed trading in the red (19 of 30). Outsiders were Apple Inc. (AAPL; -2.12%). The biggest gainers were Merck & Co. (MRK; + 3.36%).

S&P sectors showed mixed dynamics. The health sector grew the most (+ 0.8%). The largest decline was shown by the technology sector (-0.8%).

At the time of closing:

Dow 27,070.60 -20.12 -0.07%

S&P 500 3,036.87 -2.55 -0.08%

Nasdaq 100 8,276.85 -49.13 -0.59%

U.S. stock-index futures traded flat on Tuesday, as investors assessed a mixed batch of Q3 earnings reports, including from  tech giant Alphabet (GOOG), big drugmakers Pfizer (PFE) and Merk (MRK), as well as a large automobile manufacturer General Motors (GM). 

Global Stocks:

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

FedEx (FDX) initiated with an Outperform at Wells Fargo; target $12

UPS (UPS) initiated with an Outperform at Wells Fargo; target $138

General Motors (GM) reported Q3 FY 2019 earnings of $1.72 per share (versus $1.87 in Q3 FY 2018), beating analysts’ consensus estimate of $1.38.

The company’s quarterly revenues amounted to $35.500 bln (-0.8% y/y), generally in line with analysts’ consensus estimate of $35.214 bln.

The company also issued downside guidance for FY 2019, projecting EPS of $4.50-4.80 compared to its prior guidance of $6.50-7.00 and analysts’ consensus estimate of $5.92.

GM rose to $37.35 (+1.94%) in pre-market trading.

MasterCard (MA) reported Q3 FY 2019 earnings of $2.07 per share (versus $1.78 in Q3 FY 2018), beating analysts’ consensus estimate of $2.01.

The company’s quarterly revenues amounted to $4.467 bln (+14.6% y/y), beating analysts’ consensus estimate of $4.414 bln.

MA rose to $278.50 (+0.93%) in pre-market trading.

Merck (MRK) reported Q3 FY 2019 earnings of $1.51 per share (versus $1.19 in Q3 FY 2018), beating analysts’ consensus estimate of $1.23.

The company’s quarterly revenues amounted to $12.397 bln (+14.9% y/y), beating analysts’ consensus estimate of $11.593 bln.

The company also raised FY 2019 EPS guidance to $5.12-5.17 from $4.84-4.94 (versus analysts’ consensus estimate of $4.97) and FY 2019 revenue guidance to $46.5-47.0 bln from $45.2-46.2 bln (versus analysts’ consensus estimate of $45.88 bln).

MRK rose to $84.30 (+2.55%) in pre-market trading.

Pfizer (PFE) reported Q3 FY 2019 earnings of $0.75 per share (versus $0.77 in Q3 FY 2018), beating analysts’ consensus estimate of $0.61.

The company’s quarterly revenues amounted to $12.680 bln (-4.6% y/y), beating analysts’ consensus estimate of $12.365 bln.

The company also raised guidance for FY 2019, projecting EPS of $2.94-3.00 (versus its prior guidance of $2.76-2.86 and analysts’ consensus estimate of $2.82) and revenue of $51.2-52.2 bln (versus its prior guidance of $50.5-52.5 bln and analysts’ consensus estimate of $51.47 bln).

PFE rose to $38.40 (+3.00%) in pre-market trading.

Alphabet (GOOG) reported Q3 FY 2019 earnings of $10.12 per share (versus $13.06 in Q3 FY 2018), missing analysts’ consensus estimate of $12.71.

The company’s quarterly revenues amounted to $40.499 bln (+20.0% y/y), generally in line with analysts’ consensus estimate of $40.167 bln.

GOOG fell to $1,272.00 (-1.40%) in pre-market trading.