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S&P 500 sets new intraday high before closing lower
29-Oct-19 16:25 ET
Dow -19.26 at 27071.46, Nasdaq -49.13 at 8276.86, S&P -2.53 at 3036.89

https://www.briefing.com/stock-market-update

[BRIEFING.COM] The S&P 500 declined 0.1% on Tuesday, although it did set a new intraday high in this lackluster session. Earnings reports remained in focus ahead of key developments later in the week, which presumably kept buying conviction in check today.

The Dow Jones Industrial Average also declined 0.1%. The Nasdaq Composite underperformed with a 0.6% loss, while the Russell 2000 managed to gain 0.3%.

An earnings miss from Alphabet (GOOG 1262.62, -27.38, -2.1%) contributed to some profit taking in the stock and in other strong technology stocks like Apple (AAPL 243.29, -5.76, -2.3%). In addition, the selloffs in Beyond Meat (BYND 81.99, -23.42, -22.2%) and GrubHub (GRUB 33.11, -25.28, -43.3%) following their results had some investors feeling less interested in high-beta names.

In turn, the S&P 500 communication services (-1.0%), information technology (-0.9%), and consumer discretionary (-0.6%) sectors, where many of these companies reside, weighed on the broader market. Fortunately, the market found some support in the health care (+1.2%), materials (+0.7%), energy (+0.4%), and real estate (+0.4%) sectors.

Pfizer (PFE 38.21, +0.93, +2.5%) and Merck (MRK 85.11, +2.91, +3.5%) provided the lift for the health care space after both reported positive quarterly results and upbeat guidance. Other blue-chip companies with less-demanding valuations like General Motors (GM 38.21, +1.57, +4.3%), Kellogg (K 62.87, +1.81, +3.0%), Xerox (XRX 34.40, +3.61, +11.7%), and Ingersoll-Rand (IR 127.86, +5.78, +4.7%) also pleased investors with their earnings reports.

Separately, Johnson & Johnson (JNJ 129.12, -0.06, unch) announced that "rigorous and third-party testing confirms there is no asbestos in Johnson's Baby Powder." Shares were halted for trading and did not resume trading before the market closed. Shares of Boeing (BA 348.93, +8.05, +2.4%) reacted favorably to CEO Dennis Muilenburg's testimony before the Senate.

U.S. Treasuries crept higher in an equally lackluster session. The 2-yr yield and the 10-yr yield both declined one basis point to 1.64% and 1.84%, respectively. The U.S. Dollar Index declined 0.1% to 97.69. WTI crude declined 0.3%, or $0.19, to $55.76/bbl.

Reviewing Tuesday's economic data, which included Conference Board's Consumer Confidence Index for October, Pending Home Sales for September, and the S&P Case-Shiller Home Price Index for August:

The Conference Board's Consumer Confidence Index slipped to 125.9 in October (Briefing.com consensus 127.5) from an upwardly revised 126.3 (from 125.1) in September.
The key takeaway from the report is that there wasn't any material change from the prior month despite lingering worries about trade and economic growth prospects, suggesting overall feelings about job security remain an underpinning for consumer confidence.
Pending Home Sales increased 1.5% in September (Briefing.com consensus +0.7%). Today's reading follows a revised 1.4% increase in August (from 1.6%).
The S&P Case-Shiller Housing Price Index for August increased 2.0% (Briefing.com consensus 2.5%) following an unrevised 2.0% increase in the prior month.

Looking ahead, investors will receive the FOMC rate decision, the advance estimate for Q3 GDP, the ADP Employment Change report for October, and the weekly MBA Mortgage Applications Index on Wednesday.

Nasdaq Composite +24.7% YTD
S&P 500 +21.1% YTD
Russell 2000 +17.0% YTD
Dow Jones Industrial Average +16.1% YTD

Market Snapshot
Dow 27071.46 -19.26 (-0.07%)
Nasdaq 8276.86 -49.13 (-0.59%)
SP 500 3036.89 -2.53 (-0.08%)
10-yr Note +1/32 1.834
NYSE Adv 1494 Dec 1357 Vol 808.1 mln
Nasdaq Adv 1545 Dec 1525 Vol 1.8 bln

Industry Watch
Strong: Health Care, Materials, Energy, Real Estate
Weak: Communication Services, Information Technology, Consumer Discretionary

Moving the Market

-- S&P 500 sets new intraday high in muted session before closing lower

-- Alphabet (GOOG) pulls back from all-time highs after missing earnings estimates; relative weakness in other technology stocks

-- Strength in the health care sector after positive results, upbeat guidance from Pfizer (PFE) and Merck (MRK)

-- Blue-chip stocks outperformed