By Mark DeCambre, MarketWatch
Boeing stock down three straight days in a row
U.S. stock benchmarks edged higher Monday, amid optimism over
tariff talks and better-than-expected corporate earnings, but a
decline in shares of Boeing was capping gains in the blue-chip Dow
index.
How are major indexes performing?
The Dow Jones Industrial Average edged 12 points, or less than
0.1%, higher at 26,782.
Boeing Co.'s stock (BA) extended its decline to a two-month low,
down 4.2%, following a report on Friday that said the company may
have misled federal aviation authorities
(http://www.marketwatch.com/story/boeing-stock-at-its-lowest-in-two-months-after-report-jet-maker-may-have-misled-faa-2019-10-18)
about the safety of the 737 Max jet. The drop was producing a
roughly 100-point drag on the aviation and defense contractor. The
company has traded down three straight sessions, marking a loss of
more than 12% over the period, its worst such stretch since August
2011.
The S&P 500 index , meanwhile, advanced 13 points, or 0.5%,
at 2,999.15, while the Nasdaq Composite Index climbed 46 points, or
0.6%, to reach 8,135.
Last week
(http://www.marketwatch.com/story/stock-index-futures-struggle-for-direction-after-weak-china-growth-2019-10-18),
the Dow declined 0.2%, falling for four of the past five weeks, the
S&P 500 index rose 0.5%, notching two consecutive weekly gains,
while the Nasdaq Composite Index produced a weekly advance of 0.4%
and has gained for three consecutive weeks.
The Dow stands 2.2% from its July 15 record finish, the S&P
500 is off 1.3% from its all-time closing high set on July 26,
while the Nasdaq is off 2.9% from its July 26 record close, as of
Friday's finish.
What's driving the market?
China's Vice Premier Liu He said Washington and Beijing have
laid the groundwork for success in the first phase of its attempt
to carve out a resolution to its trade disagreement. "China and the
U.S. have made substantial progress in many aspects, and laid an
important foundation for a phase one agreement," said China's top
trade negotiator at a technology conference in Nanchang, Jiangxi,
on Saturday, Bloomberg News reported (paywall)
(https://www.bloomberg.com/news/articles/2019-10-19/china-s-liu-confirms-phase-one-of-u-s-trade-deal-is-in-progress?cmpid=BBD102119_MKT&utm_medium=email&utm_source=newsletter&utm_term=191021&utm_campaign=markets).
Meanwhile, U.K. British Prime Minister Boris Johnson was forced
to ask the European Union for a three-month extension to the Oct.
31 deadline to exit from the trade bloc, representing the latest
setback for the British leader and the country's yearslong attempt
to forge an orderly separation. The Germany's economic affairs
minister said he thought the EU would approve the extension
request. Johnson is seeking another vote on his Brexit proposal on
Monday.
Read:What a Brexit deal would mean for U.S. stocks and global
investors
(http://www.marketwatch.com/story/what-a-brexit-deal-would-mean-for-us-stocks-and-global-investors-2019-10-17)
Markets have been focused on the threat of Britain crashing out
of the EU without a trade agreement, which some fear could disrupt
global markets.
In corporate earnings, of the roughly 75 S&P 500 companies,
82.7% of them reported better-than-expected third-quarter results,
while only 12% reported earnings that were below analysts'
expectations, according to Refinitiv. By comparison, the long-term
average of outperformance since 1994 is 65% and 20% for
cooler-than-expected results.
Some 130 S&P 500 companies, or a quarter of the index, are
expected to report quarterly earnings this week.
"We expect a mixed to positive session as earnings continue to
uplift investors sentiment even though Brexit situation is closely
eyed," said Peter Cardillo, chief market economist at Spartan
Capital Securities in a research note.
Which stocks are in focus?
Shares of Halliburton Co.(HAL)rose 5.8% on Monday
(http://www.marketwatch.com/story/halliburtons-stock-falls-after-profit-matches-expectations-but-revenue-falls-below-2019-10-21),
after the oil-services company reported a third-quarter profit that
was in line with expectations but revenue that fell below, amid
lower pressure pumping activity and reduced drilling and wireline
activity.
Shares of McDermott International Inc.(MDR) surged 7%
(http://www.marketwatch.com/story/mcdermotts-stock-rockets-after-new-17-billion-financing-deal-2019-10-21)after
the company announced an agreement on $1.7 billion in new
financing. This comes amid reports that McDermott was in talks to
restructure its balance sheet.
Teva Pharmaceutical Industries Ltd's U.S.-listed stock
(TEVA.TV)rose 1.2%
(http://www.marketwatch.com/story/mckesson-cardinal-health-amerisource-bergen-and-teva-stocks-all-fall-after-settling-with-ohio-counties-on-opioid-suit-2019-10-21)
after several drug companies reached a settlement with two Ohio
counties in opioid lawsuits, according to a report from The Wall
Street Journal.
How are other markets performing?
The 10-year Treasury note yield gained 2.9 basis points to trade
at 1.776%.
West Texas Intermediate crude for November delivery shed 79
cents, or 1.5%, at $52.90 a barrel on the New York Mercantile
Exchange.
Gold for December delivery on Comex rose by $1.30, or less than
0.1%, at $1,495.40 an ounce.
The ICE U.S. dollar index , which tracks the performance of the
greenback against its major rivals, fell less than 0.1% to 97.233
on Monday.
Global stock-markets were also trading higher at the start of
the week. The Stoxx Europe 600 was up more than 0.6% to 394.37. In
Asia, Japan's Topix index gained 0.4% and China's CSI 300 index
finished up 0.3%.
(END) Dow Jones Newswires
October 21, 2019 10:52 ET (14:52 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.