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Wall Street recouped some of its losses in October on Tuesday following President Trump’s statement that he is expecting a “great” trade deal with China. All three major stock indexes closed sharply higher with chipset makers and transporters gaining the most. Strong consumer confidence in October also boosted investor confidence.
The Dow Jones Industrial Average (DJI) closed at 24,874.64, rising 1.8% or 431.72 points. The S&P 500 Index (INX) gained 1.6% to close at 2,682.63. The Nasdaq Composite Index (IXIC) closed at 7,161.65, climbing 1.6% or 111.36 points. A total of 9.6 billion shares were traded on Tuesday, higher than the last 20-session average of 8.6 billion shares. Advancers outnumbered decliners on the NYSE by 2.26-to-1 ratio. On the Nasdaq, advancers had an edge over decliners by 2.09-to-1 ratio. The CBOE VIX decreased 5.5% to close at 23.35.
How Did the Benchmarks Perform?
The Dow ended in positive territory reversing its two-day losing streak. Notably, twenty six components of the 30-stock blue-chip index closed in the green while the remaining four finished in the red.
The S&P 500 also closed in the green led by a 2.7% rise in Communication Services Select Sector SPDR (XLC). Energy Select Sector SPDR (XLE) and Materials Select Sector SPDR (XLB) each gained 2.3% while Industrials Select Sector SPDR (XLI) posted a 2.1% increase. Notably, all 11 sectors of the benchmark index closed in the green.
Meanwhile, the tech-laden Nasdaq Composite closed in positive territory after two consecutive days of losses due to strong performance of large-cap technology stocks.
Trade Tensions Eases
On Oct 29, evening, in an interview with the Fox News Channel, President Trump stated that he is looking for a “great” trade deal with China in November. Both Donald Trump and Xi Jinpingare expected to attend next month’s G20 summit in Buenos Aires, Argentina. These two leaders are likely to meet on the summit’s sidelines in order to reduce tariff-related conflicts.
President Trump has indicated that the deal will incorporate key U.S. concerns regarding drastic changes inChinese trade, including technology transfer and industrial subsidy policies. Trump thinks current Chinese practices regarding these matters are highly detrimental to the political and technological supremacy of the United States.
Notably, on Oct 29, Bloomberg reported that United States is preparing to levy tariffs on all residual imports from China worth $257 billion in early December. These duties will come into effect if trade related negotiations between Trump and Xi Jinping fails to resolve conflicts.
Chipset Makers and Transporters Gains
The temporary reduction of trade-related tensions between United States and China has helped semiconductor manufacturers to regain some of the losses made in October. China is a major market for U.S. chipset makers. Moreover, many chipset developers have strong outsourcing tie-ups with Chinese companies. Consequently, shares of Intel Corp. (INTC - Free Report) and NVIDIA Corp. (NVDA - Free Report) were up 5.2% and 9.4%, respectively.
Moreover, strong U.S. economic fundamentals and record high consumer confidence in October resulted in strong performance of transportation stocks. Consequently, shares of CSX Corp. (CSX - Free Report) and Delta Air Lines Inc. (DAL - Free Report) were up 4.8% and 3.2%, respectively.
On Oct 30, the Conference Board reported that U.S. consumer confidence for the month of October stood at 137.9, the highest reading since September 2000, outpacing the consensus estimate of 134.9. The present situation index, a measure of how U.S. citizens view their economy currently, surged up to 172.8 from 169.4.The future expectations index — indicating what Americans think the economy will look like in the next six months — increased to 114.6 from 112.5. Both these figures are at their 18-months highs.
The S&P CoreLogicCase-Shiller 10-City Compositehome prices index rose 5.1% annually in August compared with 5.5% in July. The 20-City Composite price index grew 5.5% annually in August compared with 5.9% in July.
Westinghouse Air Brake Technologies Corp. (WAB - Free Report) (operating as Wabtec Corp.) reported third-quarter 2018 earnings (excluding 4 cents from non-recurring items) of 95 cents per share, in line with the Zacks Consensus Estimate. (Read More)
3 Medical Stocks to Buy Now
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.
Image: Bigstock
Stock Market News For Oct 31, 2018
Wall Street recouped some of its losses in October on Tuesday following President Trump’s statement that he is expecting a “great” trade deal with China. All three major stock indexes closed sharply higher with chipset makers and transporters gaining the most. Strong consumer confidence in October also boosted investor confidence.
The Dow Jones Industrial Average (DJI) closed at 24,874.64, rising 1.8% or 431.72 points. The S&P 500 Index (INX) gained 1.6% to close at 2,682.63. The Nasdaq Composite Index (IXIC) closed at 7,161.65, climbing 1.6% or 111.36 points. A total of 9.6 billion shares were traded on Tuesday, higher than the last 20-session average of 8.6 billion shares. Advancers outnumbered decliners on the NYSE by 2.26-to-1 ratio. On the Nasdaq, advancers had an edge over decliners by 2.09-to-1 ratio. The CBOE VIX decreased 5.5% to close at 23.35.
How Did the Benchmarks Perform?
The Dow ended in positive territory reversing its two-day losing streak. Notably, twenty six components of the 30-stock blue-chip index closed in the green while the remaining four finished in the red.
The S&P 500 also closed in the green led by a 2.7% rise in Communication Services Select Sector SPDR (XLC). Energy Select Sector SPDR (XLE) and Materials Select Sector SPDR (XLB) each gained 2.3% while Industrials Select Sector SPDR (XLI) posted a 2.1% increase. Notably, all 11 sectors of the benchmark index closed in the green.
Meanwhile, the tech-laden Nasdaq Composite closed in positive territory after two consecutive days of losses due to strong performance of large-cap technology stocks.
Trade Tensions Eases
On Oct 29, evening, in an interview with the Fox News Channel, President Trump stated that he is looking for a “great” trade deal with China in November. Both Donald Trump and Xi Jinpingare expected to attend next month’s G20 summit in Buenos Aires, Argentina. These two leaders are likely to meet on the summit’s sidelines in order to reduce tariff-related conflicts.
President Trump has indicated that the deal will incorporate key U.S. concerns regarding drastic changes inChinese trade, including technology transfer and industrial subsidy policies. Trump thinks current Chinese practices regarding these matters are highly detrimental to the political and technological supremacy of the United States.
Notably, on Oct 29, Bloomberg reported that United States is preparing to levy tariffs on all residual imports from China worth $257 billion in early December. These duties will come into effect if trade related negotiations between Trump and Xi Jinping fails to resolve conflicts.
Chipset Makers and Transporters Gains
The temporary reduction of trade-related tensions between United States and China has helped semiconductor manufacturers to regain some of the losses made in October. China is a major market for U.S. chipset makers. Moreover, many chipset developers have strong outsourcing tie-ups with Chinese companies. Consequently, shares of Intel Corp. (INTC - Free Report) and NVIDIA Corp. (NVDA - Free Report) were up 5.2% and 9.4%, respectively.
Moreover, strong U.S. economic fundamentals and record high consumer confidence in October resulted in strong performance of transportation stocks. Consequently, shares of CSX Corp. (CSX - Free Report) and Delta Air Lines Inc. (DAL - Free Report) were up 4.8% and 3.2%, respectively.
CSX carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Economic Data
On Oct 30, the Conference Board reported that U.S. consumer confidence for the month of October stood at 137.9, the highest reading since September 2000, outpacing the consensus estimate of 134.9. The present situation index, a measure of how U.S. citizens view their economy currently, surged up to 172.8 from 169.4.The future expectations index — indicating what Americans think the economy will look like in the next six months — increased to 114.6 from 112.5. Both these figures are at their 18-months highs.
The S&P CoreLogicCase-Shiller 10-City Compositehome prices index rose 5.1% annually in August compared with 5.5% in July. The 20-City Composite price index grew 5.5% annually in August compared with 5.9% in July.
Stocks That Made Headlines
C.H. Robinson Q3 Earnings Top Estimates, Soar Y/Y
C.H. Robinson Worldwide Inc.’s (CHRW - Free Report) third-quarter 2018 earnings per share of $1.25 beat the Zacks Consensus Estimate of $1.17. (Read More)
Westinghouse Air Brake Q3 Earnings Meet, Rise Y/Y
Westinghouse Air Brake Technologies Corp. (WAB - Free Report) (operating as Wabtec Corp.) reported third-quarter 2018 earnings (excluding 4 cents from non-recurring items) of 95 cents per share, in line with the Zacks Consensus Estimate. (Read More)
3 Medical Stocks to Buy Now
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.
See them today for free >>