US equity indices started higher close to all-time highs record as Q3 earnings season heats up. Nasdaq started the day in a cautious mood as US-China talks mounted hopes of a November interim deal. The trade negotiations outlook remains volatile as both sides give and take. Secretary Larry Kudlow in an interview yesterday said USA could cancel the December tariffs if trade negotiations were to continue to go well with China. The IMF lowered its 2020 forecast for China’s GDP to 5.8% last week. Investors have increased their bets for a cut by FOMC at the end of the month, they see an 85% chance of the Fed to lower interest rates in late October; that will be supportive for equities.
On the data front, United States Existing Home Sales (MoM) came in at 5.38M below forecasts of 5.45M in September while the Richmond Fed Manufacturing Index came in at 8, topping forecasts of -14 in October.
The Dow Jones Industrial Average started 0.21% higher at 26,884, while the S&P 500 trading 0.14% higher at 3,011. The CBOE Volatility Index (VIX) adds 0.02% today at 14.02 to confirm the quiet market mood.
Procter & Gamble (PG) is 3.62% higher after the company raised the 2020 sales growth expectations. United Technologies Corp. (UTX) is 1.31% higher after Q3 earnings beat expectations. Biogen (BIIB) also beat Wall Street, estimates, and the stock is adding over 25%. On the other hand McDonald’s (MCD, is -3.93% lower after Q3 earnings missed analysts expectations.
