Major US stock indices fell slightly, as concerns that the US and China might not close the deal outweighed the solid reporting of Apple (AAPL) and Facebook (FB).

On Thursday, Bloomberg News reported, citing anonymous sources, that Chinese officials question the possibility of a comprehensive long-term trade deal with Washington and US President Donald Trump. The article also notes that Chinese officials are worried about Trump's “impulsive nature” and the risk of rejecting even an interim deal.

However, Trump said on Twitter that the two countries will soon announce a new venue where the Phase 1 trade deal will be concluded after Chile’s authorities canceled the APEC summit on November 16-17.

Recent reports have heightened uncertainty about the prospects for a trade deal between the US and China, outweighing solid corporate segment reporting, including giants such as Apple (AAPL) and Facebook (FB), and the Fed’s third rate cut this year on the eve.

Market participants also studied US consumer income / expense data for September. According to a report from the Department of Commerce, consumer spending, which accounts for more than two-thirds of US economic activity, rose 0.2% last month as households stepped up car purchases and began to spend more on health care. August data was revised to show consumer spending growth of 0.2% instead of 0.1% growth earlier. Economists had forecast that spending would rise 0.2% last month. Personal incomes rose 0.3% in September due to higher income for farm owners, which is likely due to payments to farmers affected by the US-China trade war.

Almost all DOW components completed trading in the red (25 of 30). The outsider was Walgreens Boots Alliance (WBA; -2.26%). The biggest gainers were Apple Inc. (AAPL; + 2.14%).

Almost all S&P sectors recorded a decline. Only the utilities sector (+ 0.2%) and the consumer goods sector (+ 0.1%) grew. The conglomerate sector showed the largest decrease (-1.2%).

At the time of closing:

Dow 27,046.23  -140.46 -0.52%

S&P 500 3,037.56  -9.21 -0.30%

Nasdaq 100 8,292.36 -11.61 -0.14%

U.S. stock-index futures traded slightly lower on Thursday, as increased uncertainty around a potential trade deal between the U.S. and China overshadowed strong earnings reports. 

Global Stocks:

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

Int'l Paper (IP) reported Q3 FY 2019 earnings of $1.09 per share (versus $1.56 in Q3 FY 2018), beating analysts’ consensus estimate of $0.99.

The company’s quarterly revenues amounted to $5.568 bln (-5.6% y/y), missing analysts’ consensus estimate of $5.633 bln.

IP rose to $43.03 (+0.89%) in pre-market trading.

Starbucks (SBUX) reported Q4 FY 2019 earnings of $0.70 per share (versus $0.62 in Q4 FY 2018), in line with analysts’ consensus estimate.

The company’s quarterly revenues amounted to $6.747 bln (+7.0% y/y), generally in line with analysts’ consensus estimate of $6.682 bln.

The company also issued guidance for FY 2020, projecting EPS of $3.00-3.05 versus analysts’ consensus estimate of $3.08 and revenue growth of 6-8% (implying $28.1-2.8.6 bln) versus analysts’ consensus estimate of $28.44 bln.

SBUX rose to $86.00 (+2.15%) in pre-market trading.

Lyft (LYFT) reported Q3 FY 2019 loss of $0.41 per share, better than analysts’ consensus estimate of -$0.73.

The company’s quarterly revenues amounted to $0.956 bln (+63.4% y/y), beating analysts’ consensus estimate of $0.915 bln.

The company also issued upside guidance for Q4 FY 2019, projecting revenues of $0.975-0.985 bln versus analysts’ consensus estimate of $0.943 bln.

LYFT rose to $45.85 (+3.94%) in pre-market trading.

Facebook (FB) reported Q3 FY 2019 earnings of $2.12 per share (versus $1.76 in Q3 FY 2018), beating analysts’ consensus estimate of $1.88.

The company’s quarterly revenues amounted to $17.652 bln (+28.6% y/y), beating analysts’ consensus estimate of $17.350 bln.

FB rose to $195.77 (+3.99%) in pre-market trading.

Apple (AAPL) reported Q4 FY 2019 earnings of $3.03 per share (versus $2.91 in Q4 FY 2018), beating analysts’ consensus estimate of $2.83.

The company’s quarterly revenues amounted to $64.040 bln (+1.8% y/y), beating analysts’ consensus estimate of $62.862 bln.

The company also issued upside guidance for Q1 FY 2020, projecting revenues of $85.5-89.5 bln versus analysts’ consensus estimate of $86.21 bln and gross margins of 37.5-38.5% versus analysts’ consensus estimate of 37.8% and 38.0% last year.

AAPL rose to $248.80 (+2.28%) in pre-market trading.