Concern over trade talks between the US and China pushed markets lower despite a batch of good earnings reports. At the close the Dow was off 140 at 27,040 on heavy trading volume. For the month of October, the Dow was essentially flat and for the year is up roughly 16%.
Apple reported better than expected numbers with revenue up 2% and net income up 4%. Shares of Apple hit new all-time highs. Facebook also reported solid earnings sending shares higher. Revenue grew 29% and net profits were up 20%.
Starbucks reported a 7% revenue increase and a 13% rise in profits. The gurus were happy with the report and even though the company issued cautious forward guidance, strength in its loyalty program and robust same store sales growth of 6% stood out as positive developments.
Here are some economic news headlines of note: 1) Seattle might be seeing the end of its long-standing construction boom as nonresidential construction starts fell 54% from last year. Nonresidential includes office, retail, hotels, warehouses, manufacturing, educational health care, religious, government, recreational and other buildings. 2) Across the pond in Hong Kong the latest GDP data showed a 3.2% decrease which means that thanks to protests, declining tourism and capital flight Hong Kong is now in a recession. 3) China’s latest manufacturing PMI fell to 49.3. Any reading below 50 signals contraction while a reading above 50 signal growth.