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US equities posted a mixed performance during the talks on Monday, ahead of an updated Federal Reserve policy statement and mid-term elections that could change the balance of power in Washington.
How did the benchmarks behave?
The Dow Jones Industrial Average
DJIA, + 0.76%
increased by 190.87 points to 25,461.70, a gain of 0.8%, and the S & P 500
SPX, + 0.56%
added 15.25 points, or 0.6%, to finish at 2 738.31. The Nasdaq composite index
COMP -0.38%
Meanwhile, fell 28.14 points, or 0.4%, to 7,328.85.
Last week, the Dow and the S & P 500 rose 2.4% and the Nasdaq 2.7%, its first weekly gain since the end of September.
What motivated the market?
The mid-term legislative elections, which should allow Democrats to take control of the House and Republicans to retain control of the Senate, are being held on Tuesday. Thursday, the Fed concludes a two-day political meeting, which should not change rates, but could give new information to investors on the pace of future rate increases and the effects of trade disputes between the United States and China . on the national economy.
On Monday, Chinese President Xi Jinping, speaking at a trade show in Shanghai, pledged to respond to criticisms that his business practices are "unfair" by reducing his tariffs and opening up his economy to more imports.
On Friday, the markets had to contend with a series of contradictory headlines on the progress of negotiations between Beijing and Washington. Shares trimmed their losses at the end of trading on Friday after President Donald Trump said progress was being made in talks with Chinese leaders. A few hours earlier, Larry Kudlow, his main economic adviser, had said that the United States and China were far from having a trade deal.
Lily: How the trade negotiations between the United States and China are the main catalyst of the stock market
What stocks are under discussion?
Actions of Apple Inc.
AAPL, -2.84%
fell 2.8% following the 6.6% decline in the iPhone maker's shares Friday, after stating that it would no longer disclose unit sales of its products to investors, as it has done for more 10 years old. Market participants also reacted to reports that Apple's demand for its XR phones might not meet expectations.
Under Armor Inc.
UAA, + 1.22%
equities rose 1.2% after analysts at Stifel Nicolaus raised their price target from $ 27 to $ 30.
Actions of Sysco Corp.
SYY, -9.44%
fell 9.4% on Monday, after the company missed its earnings estimates for the first quarter of 2019. The stock is experiencing the largest percentage decline since Black Monday, October 19, 1987, when it had lost 25.86%, according to Dow Jones Market Data.
Cabot Oil & Gas Corp.
TOOTH, + 5.87%
jumped 5.9% and EQT Corp. increased by over 8.3% as natural gas prices rose sharply, with forecasts appearing colder than expected United States later this month. Natural gas futures contracts in December
NGZ18, + 8.25%
increased by 8.3% and reached a nine-month high.
Home Improvement Retailer Parts Lowe's Companies
LOW, + 0.26%
rose 0.3% after the company announced that it would close 20 underperforming stores in the United States and 31 stores in Canada as part of a strategic re-evaluation.
Activision Blizzard
ATVI, -6.74%
stocks fell 6.7%, ahead of the company's third-quarter earnings released Thursday.
Actions of Amazon.com Inc.
AMZN, -2.27%
were aware of rumors that the retail giant is about to choose two cities to host its second seat. Amazon shares slid 2.3% on Monday.
Lily: These Lowe stores will close in the next three months
What data is being developed
The Markit index for the services sector stood at 54.8 for October, versus 54.7 expected, according to FactSet.
The ISM services index fell to 60.3 in October, after 61.6 in September, but it exceeds the average estimate of 58.6 of economists surveyed by MarketWatch.
What do the analysts say?
"We are seeing a rotation of FANG shares, over Apple, and the rest of the market," said Michael O'Rourke, chief market strategist at JonesTrading, at MarketWatch, using the commonly used acronym for tech companies . Facebook
FB -1.11%
Amazon
AMZN, -2.27%
Netflix
NFLX, + 2.05%
and Google parentAlphabet
GOOG, -1.67%
which have fueled much of the market gains this year and in 2017.
"Google is the only one of these companies not to have problems," O'Rourke said over the past few quarters, adding that investors had begun to re-evaluate their estimates of future earnings growth for these large technology companies.
"Investors are facing a wall of worry," which must be crossed to allow equities to resume their September highs, Peter Bye, a portfolio manager at UBS Asset Management, told MarketWatch. Bye said that slower growth in China and Europe, combined with rising interest rates in the country, makes traders nervous about the length of the current economic expansion.
"We have more and more evidence of the pressure on technology leaders," such as Google and Facebook, which investors have relied on to boost the bull market, warned Bye. "They face multiple new headwinds," like new digital taxes issued abroad, to bipartite regulatory interests of the US technology industry, he said.
How are other markets traded?
Asian stock markets ended lower on Monday, as the main pan-European stock market index
SXXP, -0.16%
closed down, with investors focusing on the effects of global trade tensions.
Oil futures
CLZ8, -0.65%
ended on Monday, even as the sanctions against Iran took effect. The dollar fell 0.3% while gold prices
GCZ8, -0.01%
were flat.
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