FYI: U.S. stocks swung between small gains and losses Wednesday as economic data suggested consumers were holding back on spending in the face of trade tensions and a global economic slowdown.
The Dow Jones Industrial Average lost 22 points, down 0.08%. The S&P 500 slipped 0.20%, and the Nasdaq Composite lost 0.30%. Global stocks, meanwhile, wavered as concerns lingered over Brexit talks and the prospect of a U.S.-China trade deal.
Data from the Commerce Department Wednesday showed that U.S. retail sales slipped 0.3% in September, missing the expectations of economists polled by The Wall Street Journal who had predicted a 0.2% increase.
That further fueled anxiety about growth in the U.S. and overseas. The International Monetary Fund this week cut its global GDP forecast for 2019 to just 3%, its lowest level since the 2008 financial crisis, citing trade tensions and geopolitics. It projected 3.4% growth in 2020.
Investors continue to scrutinize the details of the “phase one” trade deal reached between the U.S. and China last week. Despite a Chinese promise to buy more U.S. farm products, questions remain over how much, the time frame for purchases, and what the U.S. might have to give in return. The U.S. still plans to impose new 15% tariffs on $156 billion in consumer goods starting Dec. 15.
Despite those worries, major U.S. stock indexes remain near all-time highs. Investors will look to corporate earnings for new drivers.
Bank of America shares rose 2.2% as the bank reported gains in its consumer, wealth and commercial businesses. PNC Financial Services Group, Bank of New York Mellon and U.S. Bancorp also rose after reporting results.
IBM and Netflix will also report their third-quarter earnings after markets close in the U.S.
In other corporate news, shares of McKesson, AmerisourceBergen and Cardinal Health rallied after The Wall Street Journal reported they were in talks to settle opioid crisis litigation. Shares in McKesson rose 5.4%, AmerisourceBergen rose 4.8%, and Cardinal Health rose 3.4%.
Despite the downbeat report on consumer spending, consumer-related stocks ticked higher. General Motors rose 2% on reports of a tentative deal with its striking union workers. Advance Auto Parts gained 2.4%, and BorgWarner rose 1.7%.
U.S. crude oil added 1.3%, gold gained 0.6%, and the yield on the U.S. 10-year Treasury note fell to 1.75% from 1.77% on Tuesday.
Overseas, the pan-continental Stoxx Europe 600 index edged 0.1% lower as talks toward a draft plan for Britain to leave the European Union continued. Investors had been anticipating positive news to emerge overnight but were disappointed by a lack of progress Wednesday, said Peter Dixon, a senior economist at Commerzbank.
The British pound, which had hit a four-month high against the U.S. dollar a day earlier, rose 0.5%, while the FTSE 100 gauge for U.K. equities slipped 0.6%.
Chinese stocks edged lower on concerns that tensions with the U.S. over the Hong Kong protests would make striking a trade deal more complicated.
The Shanghai Composite Index fell 0.4% after the U.S. House of Representatives passed a series of bills backing pro-democracy protesters in Hong Kong, drawing a strong rebuke from China. A Chinese Foreign Ministry spokesman warned the U.S. against meddling in Chinese affairs and said the bill would damage relations between the two nations.
Regards,
Ted
Bloomberg Evening Briefing:
https://www.bloomberg.com/news/articles/2019-10-16/your-evening-briefingMarketWatch:
https://www.marketwatch.com/story/stock-futures-point-slightly-lower-as-worries-remain-over-us-china-deal-2019-10-16/printWSJ:
https://www.wsj.com/articles/china-stocks-edge-lower-on-fresh-tensions-with-u-s-11571214716Bloomberg:
https://www.bloomberg.com/news/articles/2019-10-15/asian-stocks-to-track-u-s-higher-treasuries-drop-markets-wrap?srnd=premiumIBD:
https://www.investors.com/market-trend/stock-market-today/major-stock-market-indexes-cant-escape-losses-this-sectors-shocking-drop-hits-nasdaq/CNBC:
https://www.cnbc.com/2019/10/16/stock-markets-brexit-and-us-china-trade-talks-in-focus-on-wall-street.htmlReuters:
https://uk.reuters.com/article/us-usa-stocks/sp-500-dips-as-economic-data-trade-worries-offset-upbeat-earnings-idUKKBN1WV1KNU.K:
https://uk.reuters.com/article/uk-britain-stocks/uk-stocks-retreat-as-market-waits-for-brexit-deal-update-idUKKBN1WV0U7Europe:
https://www.reuters.com/article/us-europe-stocks/european-shares-pause-as-brexit-deal-reports-swirl-idUSKBN1WV0RRAsia:
https://www.cnbc.com/2019/10/16/asia-stocks-october-16-brexit-us-earnings-oil-and-currencies.htmlBonds:
https://www.cnbc.com/2019/10/16/us-treasury-yields-china-hongkong-retail-sales.htmlCurrencies:
https://www.cnbc.com/2019/10/16/forex-markets-brexit-in-focus.htmlOil
https://www.cnbc.com/2019/10/16/oil-markets-brexit-opec-supply-in-focus.htmlGold:
https://www.cnbc.com/2019/10/16/gold-markets-brexit-global-politics-in-focus.htmlCurrent Futures:
https://finviz.com/futures.ashx 
