Q3 Earnings Alert! Plan early for this week’s stock reports with all key data in 1 placeSee list

Stocks - S&P Pulls Back as Investors Take Some Profits Ahead of Fed

Published 2019/10/29, 21:50
Updated 2019/10/29, 23:10
© Reuters.
NDX
-
XAU/USD
-
US500
-
DJI
-
MSFT
-
STLAM
-
GOOGL
-
AAPL
-
XRX
-
LEG
-
KR
-
NOV
-
GC
-
LCO
-
CL
-
FTI
-
IPGP
-
IXIC
-
HCA
-
US10YT=X
-
AOS
-
GOOG
-
GRUB
-
PUGOY
-
BYND
-

Investing.com – The big stock market rally lost some steam Tuesday as four days of sizable gains produced the inevitable profit-taking.

Technology shares, especially giants like Apple (NASDAQ:AAPL), Google parent Alphabet (NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT), led the pullback.

The S&P 500 hit a new intraday high of 3,047.87 early in the session but pulled back to a 0.08% loss.

The Dow Jones industrials dropped a modest 0.07%. The Nasdaq Composite slid 0.59% and the Nasdaq 100 index fell 0.78%.

Alphabet's earnings miss on Monday was probably the biggest reason for the tech pullback. But Apple, down 2.3%, had the bigger impact on the Dow and especially the Nasdaq 100. The decline cut 39 points from the Dow and nearly 22 points from the Nasdaq 100.

Apple (NASDAQ:AAPL) reports fiscal-fourth-quarter results after Wednesday's close. Analyst estimates compiled by Investing.com project earnings of $2.83 a share, down slightly from a year ago. Revenue is estimated at $62.9 billion, up 2.4%. But the fiscal first quarter is the biggest revenue and profit generator.

It also looked as if traders were surprised by a report that the phase one U.S.-China Trade Deal might not be ready when President Donald Trump and President Xi Jinping meet next month in Chile.

Part of the malaise also was the inevitable uncertainty ahead of a Federal Reserve rate decision due Wednesday at 2 PM ET (18:00 GMT). Wall Street believes a rate cut is coming. Investing.com's Fed Rate Monitor tool puts the odds of a quarter-point cut to at 97.3%.

There was some ugly selling in Beyond Meat (NASDAQ:BYND), down 22.1% following its IPO lockup period, and GrubHub (NYSE:GRUB), which plunged 43%, on weak guidance.

There was some excitement about a Wall Street Journal report that Fiat Chrysler Automobiles (NYSE:FCAU) is in merger talks with French automaker Peugeot (OTC:PUGOY). Fiat Chrysler was up about 7.6%.

Adding some additional support to the market was strength in healthcare, materials and energy stocks.

Gold futures fell modestly to $1,490.70 an ounce. West Texas Intermediate crude fell 27 cents to $55.54. Brent crude was up 2 cents to $61.59.

Interest rates dipped lower with the 10-Year Treasury yield dropping to 1.835% from Monday's 1.853%.

Oil-and-gas equipment supplier National Oilwell Varco (NYSE:NOV), Xerox (NYSE:XRX), consumer products maker Leggett & Platt (NYSE:LEG) and hospital operator HCA Holdings (NYSE:HCA) were among the top S&P 500 performers on the day.

S&P laggards were led by fiber-laser maker IPG Photonics (NASDAQ:IPGP), water-heater maker AO Smith(NYSE:AOS), oil-and-gas producer TechnipFMC (NYSE:FTI) and supermarket giant Kroger (NYSE:KR).

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.