FYI: The S&P 500 set a new intraday high for the first time in three months Monday to kick off a busy week featuring a flurry of corporate earnings, a Federal Reserve meeting and the October jobs report.
Optimism about lower interest rates and hopes for a resolution to the long-simmering trade dispute between the U.S. and China have propelled stocks this year after a brutal selloff to end 2018. The S&P 500 is up 21% in 2019—though most of those gains came in the first quarter.
The broad stock-market index inched up 0.56% to 3039., passing the previous record of 3027.98 from July 26. The Dow Jones Industrial Average gained 0.49%, and the technology-heavy Nasdaq Composite added 1.01%, putting both indexes within about 1% of their records.
Nearly 150 companies in the S&P 500, including General Motors, Facebook and Apple, are on tap to report results this week, and investors will be listening carefully for insight into how the trade war is affecting their businesses.
Most earnings reports from big companies have beaten the low expectations of analysts, but earnings are still on track to fall 3.8% from a year earlier, according to FactSet.
Investors are expecting the Federal Reserve on Wednesday to cut interest rates for the third time this year as the central bank attempts to insulate the economy against the effects of slower growth.
U.S. factory activity in September contracted for the second straight month and hit a 10-year low, and there have been signs that the manufacturing slowdown is spreading to the labor market and crimping consumer spending. Investors will be paying close attention to Friday’s monthly jobs report for fresh clues on the health of the economy.
The yield on 10-year Treasurys rose to 1.847%, from 1.805% Friday, ahead of the anticipate rate cut.
Corporate news drove swings in individual stocks Monday. Shares of Tiffany surged 31% after LVMH Moët Hennessy Louis Vuitton confirmed it is talks for a potential takeover that would value the iconic jewelry brand at $14.5 billion.
Microsoft gained 2.2% and was on track for a new high after the software company won a contract worth up to $10 billion over the next decade from the Pentagon. AT&T added 4% after the company struck a truce with an activist investor.
In Europe, the pan-continental Stoxx Europe 600 index added 0.3%. HSBC Holdings was among the biggest losers in Europe, shedding 3.5% after the bank dropped its main financial target and said it would speed up plans to revamp its U.K., U.S. and European businesses.
The U.K.’s FTSE 100 gauge ticked up 0.1% as U.K. Prime Minister Boris Johnson urged lawmakers to support his push for a Dec. 12 general election as a way to clear a path to Brexit. European Union leaders agreed to a three-month extension to the Brexit deadline, extending the political uncertainty until Jan. 31.
Asian markets had a stronger start to the week. The Shanghai Composite Index gained 0.9% and Hong Kong’s benchmark Hang Seng Index climbed 0.8%.
Regards,
Ted
Bloomberg Evening Briefing:
https://www.bloomberg.com/news/articles/2019-10-28/your-evening-briefingMarketWatch:
https://www.marketwatch.com/story/stock-index-futures-point-slightly-higher-as-sp-500-nears-record-territory-2019-10-28/printWSJ:
https://www.wsj.com/articles/european-stocks-off-to-weak-start-amid-brexit-uncertainty-11572256781Bloomberg:
https://www.bloomberg.com/news/articles/2019-10-27/stocks-in-asia-to-rise-as-u-s-flirts-with-record-markets-wrap?srnd=premiumIBD:
https://www.investors.com/market-trend/stock-market-today/dow-jones-flashes-bullish-signal-alphabet-rallies-earnings/CNBC:
https://www.cnbc.com/2019/10/28/stock-market-investors-monitor-busiest-week-of-earnings-season.htmlReuters:
https://uk.reuters.com/article/us-usa-stocks/sp-500-hits-all-time-high-on-trade-optimism-rate-cut-hopes-idUKKBN1X715IU.K:
https://uk.reuters.com/article/uk-britain-stocks/ftse-100-ekes-out-gains-on-pharma-strength-idUKKBN1X70O8Europe:
https://www.reuters.com/article/us-europe-stocks/u-s-china-trade-deal-hopes-drive-european-shares-to-21-month-high-idUSKBN1X70OIAsia:
https://www.cnbc.com/2019/10/28/asia-markets-oct-28-us-china-phase-one-deal-hsbc-earnings-and-oil.htmlBonds:
https://www.cnbc.com/2019/10/28/us-treasury-yields-move-higher-as-investors-monitor-earnings-auctions.htmlCurrencies:
https://www.cnbc.com/2019/10/28/forex-markets-federal-reserve-brexit-in-focus.htmlOil
https://www.cnbc.com/2019/10/28/oil-markets-chinas-economy-in-focus.htmlGold:
https://www.cnbc.com/2019/10/28/gold-markets-us-federal-reserve-in-focus.htmlWSJ: Markets At A Glance:
https://markets.wsj.com/usMajor ETFs % Change:
https://www.barchart.com/etfs-funds/etf-monitorSPDR's Sector Tracker:
http://www.sectorspdr.com/sectorspdr/tools/sector-trackerSPDR's Bloomberg Sector Performance Pie Chart:
https://www.bloomberg.com/markets/sectorsCurrent Futures:
https://finviz.com/futures.ashx 
