Major US stock indices predominantly increased as the fall in the conglomerate sector was offset by the growth in the utility sector.

Alphabet (GOOG) shares plummeted by 7.58% after the company showed quarterly revenue of $ 36.34 billion against an expected $ 37.33 billion. According to the company, the reason for lower revenue was a slowdown in Google advertising sales.

The negative dynamics of GOOG shares provoked the fall of most other shares of the popular FAANG group: Facebook (FB), Amazon (AMZN) and Apple (AAPL). It is also worth noting that Apple will publish its quarterly report today after the close of the trading session.

Investors also analyzed the latest news about the US-China trade negotiations. White House Chief of Staff Mick Mulvaney said Tuesday that the situation with the Trump administration’s trade negotiations with China will be resolved over the next two weeks.

In addition, the focus of market participants was data on consumer confidence and pending home sales in the US. As reported in the Conference Board, their consumer confidence index improved markedly in April after it recorded a decline in March. According to the organization’s report, the index now stands at 129.2 (1985 = 100), compared with 124.2 in January (revised from 124.1). Analysts had expected the index to grow only to 126.0. At the same time, the current situation index - based on consumers' assessment of current business and labor market conditions - increased from 163.0 to 168.3, and the expectations index - based on short-term consumer forecasts for income, business and labor market conditions - improved from 98.3 to 103.0.

At the same time, a report published by the National Association of Realtors (NAR) showed that pending home sales in the US jumped in March much more than expected. According to the report, the index of pending home sales rose by 3.8% in March to 105.8, after falling by 1% to 101.9 in February. Economists had expected the index to increase by 1.1%. Despite the monthly rebound, in annual terms, the index still shows a decline of 1.2%. It is worth emphasizing, the annual decline is fixed for the 15th consecutive month.

Most of the components of DOW finished trading in positive territory (19 out of 30). The growth leader was Pfizer Inc. (PFE; + 2.86%). Outsider were UnitedHealth Group Incorporated (UNH; -1.83%)

Most sectors of the S & P recorded a decline. The largest decline was shown by the conglomerate sector (-3.2%). The utility sector grew the most (+ 1.3%).

At the time of closing:

Dow 26,592.91 +38.52 +0.15%

S & P 500 2,945.83 +2.80 +0.10%

Nasdaq 100 8,107.77 -54.09 -0.66%

S&P reported on Tuesday its Case-Shiller Home Price Index, which tracks home prices in 20 U.S. metropolitan areas, rose 3.0 percent y-o-y in February, following a revised 3.5 percent y-o-y increase in January (originally a 3.6 percent y-o-y gain). That was the smallest annual advance in house prices since September 2012.

Economists had expected an advance of 3.2 percent y-o-y.

Las Vegas (+9.7 percent y-o-y), Phoenix (+6.7 percent y-o-y) and Tampa (+5.4 percent y-o-y) recorded the highest y-o-y gains in February.

Meanwhile, the S&P/Case-Shiller U.S. National Home Price Index, which measures all nine U.S. census divisions, was up 4.0 percent y-o-y in February, down from 4.2 percent y-o-y in the previous month.

David Blitzer, chairman of the index committee at S&P Dow Jones Indices, noted, “The pace of increases for home prices continues to slow. Homes began their climb in 2012 and accelerated until late 2013 when annual increases reached double digits. Subsequently, increases slowed until now when the National Index is up 4% in the last 12 months. Sales of existing single-family homes have recovered since 2010 and reached their peak one year ago in February 2018. Home sales drifted down over the last year except for a one-month pop in February 2019. Sales of new homes, housing starts, and residential investment had similar weak trajectories over the last year. Mortgage rates are down one-half to three-quarters of a percentage point since late 2018.”

U.S. stock-index futuresеs traded mixed on Tuesday, as investors digested the latest batch of earnings and weak data from China.

Global Stocks:

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

Bank of America (BAC) downgraded to Neutral from Overweight at Atlantic Equities

Alphabet (GOOG/GOOGL) downgraded to Hold from Buy at Stifel; target $1287

Facebook (FB) upgraded to Buy from Hold at DZ Bank

General Motors (GM) reported Q1 FY 2019 earnings of $1.41 per share (versus $1.43 in Q1 FY 2018), beating analysts’ consensus of $1.12.

The company’s quarterly revenues amounted to $34.878 bln (-3.4% y/y), missing analysts’ consensus estimate of $35.556 bln.

The company also reaffirmed guidance for FY 2019, projecting EPS of $6.50-7.00 versus analysts’ consensus estimate of $6.50.

GM fell to $39.26 (-1.87%) in pre-market trading.

MasterCard (MA) reported Q1 FY 2019 earnings of $1.78 per share (versus $1.50 in Q1 FY 2018), beating analysts’ consensus of $1.66.

The company’s quarterly revenues amounted to $3.889 bln (+8.6% y/y), generally in line with analysts’ consensus estimate of $3.857 bln.

MA rose to $250.01 (+1.17%) in pre-market trading.

McDonald's (MCD) reported Q1 FY 2019 earnings of $1.78 per share (versus $1.79 in Q1 FY 2018), beating analysts’ consensus of $1.76.

The company’s quarterly revenues amounted to $4.956 bln (-3.6% y/y), generally in line with analysts’ consensus estimate of $4.943 bln.

MCD rose to $204.00 (+3.49%) in pre-market trading.

Pfizer (PFE) reported Q1 FY 2019 earnings of $0.85 per share (versus $0.77 in Q1 FY 2018), beating analysts’ consensus of $0.75.

The company’s quarterly revenues amounted to $13.118 bln (+1.6% y/y), generally in line with analysts’ consensus estimate of $13.012 bln.

The company also raised FY 2019 EPS guidance to $2.83-2.93 from $2.82-2.92 (versus analysts’ consensus estimate of $2.89) and reaffirmed FY 2019 revenues guidance of $52.0-54.0 bln (versus analysts’ consensus estimate of $53.43 bln).

PFE rose to $40.00 (+1.04%) in pre-market trading.

Merck (MRK) reported Q1 FY 2019 earnings of $1.22 per share (versus $1.05 in Q1 FY 2018), beating analysts’ consensus of $1.05.

The company’s quarterly revenues amounted to $10.816 bln (+7.8% y/y), beating analysts’ consensus estimate of $10.452 bln.

The company also issued guidance for FY 2019, projecting EPS of $4.67-4.79 (versus its prior estimate of $4.57-4.72 and analysts’ consensus estimate of $4.68) and revenues of $43.9-45.1 bln (versus its prior estimate of $43.2-44.7 bln and analysts’ consensus estimate of $44.5 bln).

MRK rose to $78.00 (+1.59%) in pre-market trading.

General Electric (GE) reported Q1 FY 2019 earnings of $0.14 per share (versus $0.16 in Q1 FY 2018), beating analysts’ consensus of $0.09.

The company’s quarterly revenues amounted to $27.286 bln (-1.8% y/y), generally in line with analysts’ consensus estimate of $27.307 bln.

GE rose to $10.27 (+5.55%) in pre-market trading.

Alphabet (GOOG) reported Q1 FY 2019 earnings of $9.50 per share, including $1.7 bln fine from the EU (EPS $11.90 ex-fine), which may not be comparable to analysts’ consensus of $10.44.

The company’s quarterly revenues amounted to $36.339 bln (+16.7% y/y), missing analysts’ consensus estimate of $37.359 bln.

GOOG fell to $1,190.00 (-7.58%) in pre-market trading.