The Dow and Nasdaq closed above the record highs they hit yesterday, as investors continue to react to earnings reports and the latest headlines regarding trade talks between the U.S. and China. On the former front, reports on the whole continue to be positive but recent IPOs - like Uber (UBER) and Peloton (PTON) today - are still being held to a high standard as their losses mount. On the latter, Financial Times reported last night that some of White House officials are discussing whether to cancel certain existing China trade tariffs as a concession to help facilitate a trade deal as soon as this month.
ECONOMIC EVENTS: In the U.S., the trade deficit narrowed 4.7% to $52.5B in September, which was close to expectations. Markit's final ISM services index for October fell to 50.6, down from a 51.0 preliminary reading and the 50.9 final for September. The ISM services index bounced 2.1 points to 54.7 in October, recouping much of the 3.8 decline to 52.6 the index saw in September. The JOLTS report showed job openings dropped 277,000 to 7.024M in September
TOP NEWS: Walgreens Boots Alliance (WBA) shares rose 2.6% after Reuters reported that the company has explored going private and has also considered divesting some of its assets, such as its 27% stake in drug wholesaler AmerisourceBergen Corp (ABC). AmerisourceBergen shares finished 1.6% lower following the report.
Shares of Uber Technologies dropped 9.8% after the company reported results for what Wedbush analyst Ygal Arounian referred to as a "B-" quarter that he believes will be viewed "mixed to negatively" by Wall Street. However, Citi analyst Itay Michaeli argues that Uber's Q3 results contained "more positives than negatives" and demonstrate "clear improvements" in Rides fundamentals, while Morgan Stanley analyst Brian Nowak laid out four reasons he sees to be bullish following the update.
Another recent high-profile IPO, fitness bike maker Peloton, fell 7.6% following the company's first quarterly report since coming public, which featured better than expected fiscal first quarter revenue and a higher than forecast full-year sales outlook.
A number of Wall Street analysts raised their price targets for Adobe (ADBE) shares following the company's financial analyst meeting, where the company announced new product features and enhancements and provided preliminary FY20 guidance that Jefferies analyst Brent Thill called "solid" and "better than feared." Adobe shares closed 4.2% higher.
Additionally, the Federal Communications Commission announced that it consents to the merger of T-Mobile (TMUS) and Sprint (S), concluding that the public interest, convenience, and necessity would be served by approval, as conditioned.
MAJOR MOVERS: Among the noteworthy gainers was Tenet (THC), which rose 3.4% after it reported better than expected third quarter results and raised its guidance for fiscal 2019. Also higher after reporting quarterly results were Forterra (FRTA) and EverQuote (EVER), which gained a respective 28.5% and 28.2%.
Among the notable losers was Myriad Genetics (MYGN), which slid 40.4% after it reported downbeat Q1 revenue, saying the deletion of CPT codes impacted revenue for the quarter. Also lower after reporting quarterly results were Shake Shack (SHAK) and trivago (TRVG), which fell 20.6% and 18.3%, respectively.
INDEXES: The Dow rose 30.52, or 0.11%, to 27,492.63, the Nasdaq gained 1.48, or 0.018%, to 8,434.68, and the S&P 500 declined 3.65, or 0.12%, to 3,074.62.
Uber
-3.07 (-9.87%)
Peloton
-1.83 (-7.44%)
Adobe
+11.91 (+4.29%)
Walgreens Boots Alliance
+1.52 (+2.55%)
AmerisourceBergen
-1.41 (-1.61%)
T-Mobile
+0.55 (+0.68%)
SentinelOne
-0.005 (-0.08%)
Tenet Healthcare
+0.91 (+3.35%)
Forterra
+2.41 (+28.32%)
EverQuote
+6.07 (+27.79%)
Myriad Genetics
-14.14 (-40.32%)
Shake Shack
-17.21 (-20.45%)
Trivago
-0.605 (-17.95%)