The Dow had a second strong day after yesterday's news that the U.S. and Canada had reached an agreement that will allow for the two nations to join Mexico in a new trade pact, to be called the USMCA, that will replace the previous NAFTA deal. While the U.S. has been making progress with several allies on trade pacts, the most important trade fight remains with China, and there have been no recent headlines indicating progress on that front. While the blue chip index added another 0.5%, the Nasdaq slid by a similar percentage and the S&P closed trading nearly where it had begun. ECONOMIC EVENTS: In the U.S., no economic data of note were reported. COMPANY NEWS: Amazon (AMZN) announced plans to raise the minimum wage for all its U.S. employees to $15, effective November 1, and encouraged its "competitors and other large employers" to join in the action. The pay hike comes amid a wave of criticism from politicians, led by Senator Bernie Sanders, about the e-commerce giant's treatment of warehouse workers... Tesla (TSLA) announced that it produced 80,142 vehicles, including 53,239 Model 3 vehicles, in the third quarter and delivered 83,500 vehicles, including 55,840 Model 3s. Other automakers also issued sales reports this morning, with both Ford (F) and General Motors (GM) reporting U.S. sales declines. However, Ford's report covered only September while GM's was for the entire third quarter, as the latter no longer issues monthly sales reports... PepsiCo (PEP) shares closed about 2% lower after the snack foods and beverage giant reported better than expected quarterly results but trimmed its full-year profit forecast due to the impact of foreign exchange rates... Meanwhile, Reuters reported that Exxon Mobil (XOM) is exploring the sale of many of its U.S. Gulf of Mexico assets, as higher oil prices prompt the company to review its portfolio. MAJOR MOVERS: Among the noteworthy gainers was Clovis Oncology (CLVS), which rose 8% after the FDA granted Breakthrough Therapy designation for Rubraca for the third line treatment of patients with BRCA mutated metastatic castrate-resistant prostate cancer. Also higher was India Globalization Capital (IGC), which surged 46% despite short-seller Citron Research calling the shares a "gift" to those that can short it. Among the notable losers was Ring Energy (REI), which slid 18% after Seaport Global analyst John Aschenbeck downgraded the stock to Neutral and cut his price target on the shares to $12 from $20. Also lower was Stitch Fix (SFIX), which dropped 35% after reporting quarterly results. INDEXES: The Dow rose 122.73, or 0.46%, to 26,773.94, the Nasdaq lost 37.76, or 0.47%, to 7,999.55, and the S&P 500 declined 1.16, or 0.04%, to 2,923.43.
