By Mark DeCambre, MarketWatch , Sunny Oh
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 34 points, or 0.1%,
higher at 26.803.
Boeing Co.'s stock (BA) extended its decline to a two-month low,
down 2.9%, 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 70-point drag on the blue-chip Dow. The aviation and
defense contractor has traded down three straight sessions.
The S&P 500 index , meanwhile, advanced 17 points, or 0.6%,
to 3,003.53, while the Nasdaq Composite Index climbed 637points, or
0.8%, to reach 8,156.
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.
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).
President Donald Trump also pronounced his optimism on the
likelihood of a deal, saying it was coming along great on Monday.
(https://t.co/cWKkw7O8SI?amp=1)
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 in
Parliament on Monday, but U.K. House of Commons Speaker John Bercow
rejected his bid
(http://www.marketwatch.com/story/uk-house-speaker-bercow-rejects-government-bid-to-hold-a-new-brexit-vote-2019-10-21),
saying a new vote "would be repetitive and disorderly."
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% 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.
This week sees 130 S&P 500 companies, or a quarter of the
index, expected to report quarterly earnings.
"Equities are looking more positively at U.S.-Chinese talks and
the potential of a better than expected earnings season showing
from major names this week," wrote Arnim Holzer, macro strategist
for EAB Investment Group.
Which stocks are in focus?
Shares of Halliburton Co.(HAL)rose 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) fell
(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)
climbed after several drug companies reached a settlement with two
Ohio counties in opioid lawsuits, according to a report from The
Wall Street Journal.
Apple Inc.'s shares(AAPL) were up after an analyst at Raymond
James
(http://www.marketwatch.com/story/apple-target-price-gets-a-boost-at-raymond-james-on-increased-stability-2019-10-21)raised
its target price for the iPhone manufacturer to $280 a share, from
$250.
How are other markets performing?
The 10-year Treasury note yield gained 5.5 basis points
(http://www.marketwatch.com/story/treasury-yields-climb-amid-brexit-deal-drama-2019-10-21)
to trade at 1.802%.
West Texas Intermediate crude for November delivery was under
pressure
(http://www.marketwatch.com/story/oil-prices-set-for-second-skid-in-a-row-as-investors-fret-about-crude-demand-2019-10-21),
shedding 67 cents, or 1.2%, at $53.11 a barrel on the New York
Mercantile Exchange.
Gold for December delivery on Comex was down
(http://www.marketwatch.com/story/silver-prices-rally-16-leaving-gold-in-the-dust-2019-10-21)around
0.4%.
The ICE U.S. Dollar Index , which tracks the performance of the
greenback against six major rivals, was up less than 0.1% to
97.291.
Global stock-markets were also trading higher at the start of
the week. The Stoxx Europe 600 was up around 0.7% to 394.22. 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 13:13 ET (17:13 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.