U.S. Markets continue to maintain close to record highs into Tuesday. Investors are betting on another interest rate cut from the Federal Reserve on Wednesday, as policy makers try to avoid a recession for the U.S. economy. Coupled with the positive U.S.-China trade news and Brexit deadline being postponed until January, markets have a more positive investment future currently.
Here's how the stock market settled after normal trading Tuesday:
S&P 500 Index (SPY): -0.089% or -2.70 points
Dow Jones Industrial Average (DIA): -0.077% or -20.89 points
NASDAQ Composite Index (QQQ): -0.59% or -49.13 points
According to a report from Credit Suisse analyst Jonathan Golub, companies comprising just over half of the S&P 500's market capitalization had reported Q3 results. These earnings have beaten expectations by 3.6%, and 71% of companies topped their own profit expectations. Though, some analysts are unconvinced that the market is moving in a healthy direction. Health Care stood out as the best-performing sector of the day, with Consumer staples and Real-Estate stock also outperforming. But despite positive growth for some, other sectors like Technology, Communication Services, and Consumer Discretionary have begun to show signs of weakness.
Mike Wilson, Morgan Stanley's U.S. chief equity strategist, wrote in a note Monday: "The S&P 500 is back at all time highs but with even greater defensive leadership it may warrant investor caution with respect to a growth reacceleration." This means that though growth is present, it is premature to interpret recent outperformance as a "sign that the economic and earnings slowdown is coming to an end."
In U.S. Economic news, consumer confidence fell in October to the lowest level since June, driven by concerns over the short-term outlook for business conditions and the labor market. The Conference Board's consumer confidence index fell to 125.9 in October, from September's revised 126.3. Though confidence has declined, Lynn Franco, director of economic indicators at The Conference Board, stated that "there are no indications that consumers will curtail their holiday spending."
In Stock Sector news, sectors continue to remain mixed leading into the mid-week. The gainers include Health Care +1.16%, Materials +0.67%, Energy +0.42%, Industrials +0.39%, Real Estate +0.38%, Financials +0.28%, and Utilities +0.11%. The losers for the day include Communication Service -0.96%, Information Technology -0.92%, Consumer Discretionary -0.59%, and Consumer Staples -0.04%.
Finally, in Commodity news, West Texas Intermediate maintains its decline, with the price per barrel decreasing almost -0.40% to price around $55. Brent Crude also not making positive gains, with barrel price lowering around -0.13%, making the cost per barrel just over $61. The price of gold is also resting lower in trading today, with prices decreasing almost -0.25% to price the metal around $1,488 per ounce.