Here Are 3 Hot Things to Know About Stocks Right Now

  • The Dow Jones Industrial Average finished down Tuesday in a late day sell-off as investors focused on disappointing results from Travelers (TRV - Get Report) and McDonald's (MCD - Get Report)
  • McDonald's fell after reporting weaker-than-expected third-quarter earnings, with moderately disappointing comparable sales in its domestic U.S. business. McDonald's is Real Money's Stock of the Day.
  • Biogen (BIIB - Get Report) soared after the pharmaceutical company said it plans to pursue regulatory approval for aducanumab, its investigational treatment for early Alzheimer's disease.

Wall Street Overview

Stocks finished down after a late day sell-off Tuesday as investors focused on corporate earnings, including disappointing results from Travelers (TRV - Get Report) and McDonald's (MCD - Get Report) .

The Dow Jones Industrial Average, which been in positive territory for a large part of the day, ended down 40 points, or 0.15%, to 26,788, the S&P 500 slipped 0.36%, while the Nasdaq dropped 0.72%.

Travelers (TRV - Get Report) led the Dow's retreat, dropping 8.3% to $130.16 after the property and casualty insurer reported third-quarter earnings below Wall Street expectations.

McDonald's (MCD - Get Report) fell 5.1% to $199.23 after reporting weaker-than-expected third-quarter earnings, with moderately disappointing comparable sales in its domestic U.S. business. McDonald's is Real Money's Stock of the Day.

Hasbro (HAS - Get Report) was the Nasdaq's biggest loser, tumbling 16.8% to $100.02 after posting weaker-than-expected third-quarter earnings. Facebook (FB - Get Report) also pulled the index down, falling 3.9% to $182.34 on news that 47 different state attorneys general have now signed on to an antitrust probe that was first announced in September. 

And Netflix (NFLX - Get Report) was down 4.1% to $266.69 after Verizon (VZ - Get Report) said that it will offer a full year of rival streaming service Disney+ (DIS - Get Report) for free to certain customers

Roughly 130 companies in the S&P 500 are expected to report third-quarter earnings this week, with a focus on industrial groups and tech companies. On Monday, the S&P 500 climbed within 0.7% of a record-high close of 3,025.86.

U.S. corporate profits are expected to fall around 3.1% from last year as global growth slows and the domestic economy - particularly at the consumer level - begins to weaken.

 
Procter & Gamble ( PG - Get Report) was the Dow's leader, advancing 3.2% to $122.83 after the consumer packaged goods company posted stronger-than-expected first quarter earnings Tuesday, and boosting its full-year profit guidance.

Biogen ( BIIB - Get Report) was the S&P's big winner, soaring 26.1% to $281.87 after the pharmaceutical company said it plans to pursue regulatory approval for aducanumab, its investigational treatment for early Alzheimer's disease. 

United Technologies (UTX - Get Report) climbed 2.2% to $141.42 after the industrial aerospace company reported third-quarter results that topped estimates and also raised its full year guidance.

Lockheed Martin (LMT - Get Report) fell slightly to $373.90 even after the aerospace and security company beat Wall Street's third-quarter earnings estimates, and said it was raising its 2019 profit and revenue forecast.

Harley-Davidson (HOG - Get Report) climbed 8% to $40.04 as the iconic motorcycle company posted stronger-than-expected third-quarter earnings, but held onto its full-year shipments guidance even as it was "encouraged" by improving global sales.

Meanwhile, on the international trade front, MPs in the UK House of Commons voted in favor of Prime Minister Boris Johnson's Brexit withdrawal agreement, but then rejected his timetable for the measure, leaving the process in limbo just 9 days before the government's Oct. 31 deadline for leaving the EU. The pound, which had been strengthening over the past 10 days in anticipation of a resolution of the controversy, fell against the dollar after the votes. 
 
In addition, President Donald Trump told reporters Monday he hoped to sign a trade deal with China next month at a summit in Chile, "or whenever that might be." Larry Kudlow, White House economic adviser, said that if current talks go well the president might put off imposing more tariffs planned for December but he couldn't guarantee it.
 
China's Vice Foreign Minister Le Yucheng said the world's two largest economies have achieved some progress in their trade talks, Reuters reported, adding that any trade problems could be resolved as long as both sides respected one another. The world wants China and the United States to end their trade war, he said.

The U.S. and China, the world's two largest economies, reached a tentative agreement for the "first phase" of a trade deal less than two weeks ago.

The National Association of Realtors said that existing U.S. home sales fell 2.2% to a seasonally adjusted annual rate of 5.38 million units last month, after two straight months of gains. August's sales pace was upwardly revised to 5.50 million units. Economists had forecast existing home sales to decline 0.7% to 5.45 million units.

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