Here are five things you must know for Tuesday, Oct. 29:
1. -- Stock Futures Mixed Following S&P 500's Record High
U.S. stock futures were mixed Tuesday amid renewed optimism on U.S.-China trade talks and the expectation of near-term rate support from the Federal Reserve.
The S&P 500 closed at an all-time high of 3,039 on Monday following gains in Microsoft (MSFT) - Get Report and Apple (AAPL) - Get Report , as well as a series of stronger-than-expected third-quarter earnings.
Momentum likely now will rest on the outcome of the announcement Wednesday from the Federal Reserve on interest rates. Traders are pricing in a 95.1% probability of a rate cut but only a 19% chance of a follow-up reduction in December. The central bank is expected to cut its key lending rate by 25 basis points - the third such reduction this year - and pledge it will trim rates further if the economy continues to cool into the final months of 2019. The two-day Fed meeting begins Tuesday.
Contracts tied to the Dow Jones Industrial Average declined 38 points, futures for the S&P 500 fell 1.80 points, and Nasdaq futures were rising 3.75 points.
The economic calendar in the U.S. Tuesday includes the S&P Corelogic Case-Shiller Home Price Index for August at 9 a.m. ET, Consumer Confidence for October at 10 a.m., and the Pending Home Sales Index for September at 10 a.m.
2. -- Alphabet Tumbles on Earnings Miss
GAAP earnings were $10.12 a share, below estimates of $12.32. Revenue was $40.5 billion, which topped analysts' estimates of $40.31 billion and rose 20% from a year earlier.
The third quarter included a $1.53 billion accounting loss that was recorded on equity investments, plus a $554 million charge related to a French tax settlement.
"Alphabet's earnings miss isn't as bad as it looks at first glance, since EPS was hurt by a $1.53 billion accounting loss recorded on equity investments," said TheStreet's Eric Jhonsa. "However, accelerating operating expense growth also weighed on Alphabet's bottom line some."
Operating margin in the quarter was 23%, lower than last year's third-quarter margin of 26% and below analysts' expectations of 23.4%.
Google properties revenue, which covers ad sales on Google's websites and apps, rose 19% from last year to $28.65 billion, beating estimates of $28.43 billion. On a conference call, Chief Financial Officer Ruth Porat noted mobile search ads were the biggest driver behind this growth, followed by YouTube and a still-growing PC search ad business.
"Overall, we think the strong revenue growth numbers from both Google Properties and Google Other, and the continued cash flow momentum, tell a story of healthy fundamentals," said Jim Cramer and the Action Alerts PLUS team, which holds Alphabet in its portfolio. "Investors should look past the noisy bottom-line miss."
3. -- BP's Profit Falls 40% but Tops Expectations
BP (BP) - Get Report , the British oil company, said third-quarter underlying replacement cost profit of $2.3 billion beat analysts' expectations but fell from $3.8 billion a year earlier on lower oil prices.
The company posted a loss of $749 million in the quarter if a divestment-related charge of $2.6 billion was included.
Cash flow from operations $6.1 billion, flat with a year earlier.
Oil prices declined 17% in the period.
"BP delivered strong operating cash flow and underlying earnings in a quarter that saw lower oil and gas prices and significant hurricane impacts," said CEO Bob Dudley. " Our focus remains firmly on maintaining financial discipline and delivering safe and reliable operations throughout BP. We're also continuing to advance our strategy, making strong progress with our divestment plans and building exciting new opportunities in fast-growing downstream markets in Asia."
American depositary receipts of BP fell 0.23% in premarket trading to $39.15.
4. -- Merck, Pfizer, General Motors and AMD Report Earnings Tuesday
Earnings reports are also expected Tuesday from Shopify (SHOP) - Get Report , Advanced Micro Devices (AMD) - Get Report , Electronic Arts (EA) - Get Report , Sprint (S) - Get Report , General Motors (GM) - Get Report , Mattel (MAT) - Get Report , Mastercard (MA) - Get Report , FireEye (FEYE) - Get Report , Kellogg (K) - Get Report , Mondelez International (MDLZ) - Get Report and ConocoPhillips (COP) - Get Report .
5. -- Beyond Meat Sinks Despite Profit Beat
The El Segundo, Calif., company reported a profit of 6 cents a share on revenue of $92 million. Analysts surveyed by FactSet were expecting earnings of 3 cents a share on revenue of $82.2 million.
A year earlier, Beyond Meat reported a loss of $9.3 million on revenue of $26.3 million.
"After 10 years of aggressively investing in our science and product innovation, this is the first quarter we have generated net income," said Executive Chairman Seth Goldman on a conference call. "It is a wonderful validation from consumers who support our business strategy of building meat directly from plants."
Pressuring shares, however, was the company's acknowledgement that it will "be doing more promotion through trade and discounts going into the future," according to CEO Ethan Brown.
Beyond Meat said it expects 2019 revenue of between $265 million and $275 million, up from its previous guidance of $240 million. Analysts were expecting revenue of $264.4 million.
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