The major averages continued their recent pullback despite Treasury Secretary Steven Mnuchin stating that the White House is not giving up on stimulus talks. Mnuchin stated in an interview on CNBC that he'll tell House Speaker Nancy Pelosi that he won't let testing stand in the way as the sides work to broker a relief agreement. Meanwhile, The Hill reports that Senate Majority Leader Mitch McConnell shot down the prospect of a COVID-19 aid package totaling $1.8T-$2.2T, the goalposts of the current negotiations between Democrats and the Trump administration. McConnell told reporters in his home state of Kentucky, according to the report, that "My members think half a trillion dollars, highly targeted, is the best way to go," when asked about the prospect of a deal totaling between $1.8T and $2.2T.
ECONOMIC EVENTS: In the U.S., initial jobless claims jumped 53,000 to 898,000 in the week ended October 10. The Empire State manufacturing index fell -6.5 to 10.5 in October, missing expectations. However, the Philly Fed manufacturing index surged 17.3 to 32.3 in October, beating expectations. Import prices rose 0.3% in September and export prices increased 0.6%.
TOP NEWS: Shares of Fastly (FSLY) finished 27.2% lower after the company lowered its revenue guidance for the third quarter, citing reduced use from its largest customer, the video-sharing app TikTok.
Walgreens Boots Alliance (WBA) reported better than expected profit and revenue, with executive vice chairman and CEO Stefano Pessina noting that the company is seeing "gradual improvement in key U.S. and UK markets and continued strong performance in our wholesale business" despite uncertainty amid the global COVID-19 pandemic.
In other earnings news, Morgan Stanley (MS) reported higher than expected headline earnings and revenue, with chairman and CEO James Gorman telling investors that the "completion of the E*TRADE acquisition, the subsequent ratings upgrade from Moody's, and the recently announced acquisition of Eaton Vance significantly strengthen our Firm and position us well for future growth."
Meanwhile, Bloomberg reported that Fiat Chrysler (FCAU) has agreed to invest up to $1.1B in one of its two Canadian assembly plants under a tentative deal with over 9,000 local autoworkers.
Peloton (PTON) was sued by Icon Health & Fitness, the maker of the NordicTrack fitness bicycle, accusing it of infringing two patent claims, including one for a swiveling touchscreen and one related to automatic change of resistance levels during classes. In response, a lawyer for Peloton told Bloomberg that the lawsuit is "a retaliatory filing intended to deflect attention away from Icon's blatant infringement of Peloton's leaderboard technology and other deceptive practices."
MAJOR MOVERS: Among the noteworthy gainers was Organogenesis (ORGO), which rose 21.2% after guiding Q3 revenue above consensus. Also higher was Cars.com (CARS), which gained 25.6% after providing above-consensus Q3 revenue guidance.
Among the notable losers was Vertex Pharma (VRTX), which slid 20.7% after discontinuing its VX-814 study. Also lower was Aphria (APHA), which fell 18.4% after reporting quarterly results.
INDEXES: The Dow fell 19.80, or 0.07%, to 28,494.20, the Nasdaq lost 54.86, or 0.47%, to 11,713.87, and the S&P 500 declined 5.33, or 0.15%, to 3,483.34.
Fastly
-33.46 (-27.17%)
Walgreens Boots Alliance
+1.74 (+4.85%)
Morgan Stanley
+0.7 (+1.38%)
Ticker changed to STLA
-0.065 (-0.53%)
Peloton
+5.13 (+3.91%)
Organogenesis
+0.785 (+20.69%)
Cars.com
+2.03 (+25.28%)
Vertex Pharmaceuticals
-56.43 (-20.78%)
APHA
+