Stock Market Update Tuesday, October 29th, 2019
This morning October Consumer Confidence was released. And the report showed that consumer confidence fell to a 4-month low.
But the news didn’t seem to worry traders. Stocks rallied after the report. And at 10:50am ET, the S&P was trading at record highs.
But after making new records, stocks retreated.
The major indices rallied again during lunch. However, stocks were trading back near session lows by the end of the session.
With today’s drop, the major indices finished the session with a small loss. But it was the NASDAQ leading the way lower with a 0.6% loss.
Here’s where the major indices ended the day:
- The S&P finished with a 0.1% loss. Down 3 points, the S&P ended at 3,037.
- The DOW ended lower by 0.1%. Dropping 19 points, the DOW closed at 27,071.
- The NASDAQ was down 0.6%. With a 49 point loss, the NASDAQ finished at 8,277.
Crude Oil (CL) opened below $55 a barrel then rallied. But in spite of the comeback, oil still ended the session with a loss. Down 2.0%, CL ended at $55.55 a barrel.
In earnings news, Xerox (XRX) reported better than expected earnings and jumped 11.7% today.
But Alphabet (GOOG) reported worse than expected results and ended the day with a 2.1% loss.
GrubHub (GRUB) was a loser as well. The stock lost 43.3% after reporting worse than expected earnings.
Beyond Meat (BYND) was slammed as well. The stock reported better than expected earnings but lost 22.2% with the IPO lockup period (the period shareholders can’t sell the stock of a pre-IPO holding) ending.
Now all eyes turn to the Fed.
Tomorrow the Fed will release their Fed Statement at 2:00pm ET and will have a Press Conference at 2:30pm ET.
The Fed is expected to cut rates by a quarter-point (Fed Funds futures show a 97.3% chance of a cut). This would be the 3rd cut this year. But the real focus will be on wording, and what the Fed might have planned for the future.
And here’s some interesting data from LPL Financial…traders seem to be bullish whenever the Fed cuts rates 3 times in a year (the S&P was up an average of 20% 1 year after the Fed cut rates 3 times in 1975, 1996, and 1998).
Here is the economic calendar for the week:
Real Time Economic Calendar provided by Investing.com.
This Stock Market Update was provided by Rockwell Trading Services LLC.