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Stock market news: November 5, 2019

U.S. stocks ended little changed as investors as investors weighed recent optimism over U.S.-China trade talks against the latest batch of corporate earnings results and economic data, much of which came in mixed.

While gains were more muted Tuesday compared to the past couple sessions of gains, the Dow still ended at a fresh record high of 27,492.63, eclipsing Monday’s previous record level.

Here’s where the markets settled at the close of regular equity trading:

  • S&P 500 (^GSPC): -0.11%, or 3.5 points

  • Dow (^DJI): +0.11%, or 30.83 points

  • Nasdaq (^IXIC): +0.02%, or 1.48 points

  • 10-year Treasury yield (^TNX): +6.7 bps to 1.855%

  • Gold (GC=F): -1.65% to $1,486.10 per ounce

In a speech Tuesday, China’s President Xi Jinping reaffirmed his commitment to opening up the country’s economy and increasing imports, underscoring the potential for friendlier trade relations with the U.S.

“We will continue to lower tariffs and institutional transaction costs,” Xi said in the text of a keynote speech delivered to a trade exposition in Shanghai. “We will ensure a free yet orderly flow of both international and domestic factors of production, improve the efficient allocation of resources, and deepen integration of markets.”

Xi did not directly address the U.S.-China trade situation, but his remarks were viewed as a reiteration that China would take steps to shrink its trade surplus with the U.S., which has been a sticking point in negotiations between the two sides. In the Census Bureau’s latest report Tuesday, the U.S. trade deficit with China was shown to have decreased by just under $1 billion to $28.0 billion in September, with exports decreasing by $1.0 billion to $9 billion, and imports dropping by $1.9 billion to $37 billion.

Xi’s comments come following recent signals that negotiators from both Washington and Beijing believed they were closing in on a “Phase One” trade agreement, which come before the end of November and lay the groundwork for a more permanent and far-reaching deal.

Traders Patrick Casey, left, and Ryan Falvey confer on the floor of the New York Stock Exchange, Monday, Nov. 4, 2019. Stocks are opening higher on Wall Street, pushing major indexes toward more record highs. (AP Photo/Richard Drew)

Meanwhile, the Trump administration is considering removing some tariffs on Chinese goods to help finalize the initial trade deal, the Financial Times reported Monday. According to the report, these would involve the tariffs on $112 billion of consumer goods imports hit at a 15% rate that took effect Sept. 1.

The report helped send the Chinese yuan (USDCNY=X) strengthening past 7 per dollar for the first time since August. At the beginning of August, the People’s Bank of China had allowed the yuan to weaken beyond 7 for the first time in more than 10 years, which had in turn stoked fears that the trade war would broaden out into a currency war.

STOCKS: Uber sees profitability by 2021, Peloton sales double in first report as public company

Uber (UBER) reported a narrower-than-expected quarterly loss and strong sales, but missed expectations on some closely watched measures including gross bookings for its fast-growing UberEats segment. The ride-hailing giant’s adjusted EBITDA loss was $585 million during the quarter, smaller than the $805.1 million expected, and adjusted revenue of $3.5 billion topped estimates by $110 million, according to Bloomberg estimates. CEO Dara Khosrowshahi said he expected Uber would turn a profit on an adjusted basis in 2021.

UberEats saw gross bookings increase to $3.66 billion, or short of the $3.85 billion expected, and monthly active platform consumers grew to 103 million, versus the 107 million total users expected. The stock fell 9.85%, extending losses from after market close Monday.

Peloton (PTON) posted strong top-line growth in its first quarterly report as a public company, with revenue of $228 million handily topping expectations for $199.4 million. The company’s net loss also narrowed to $49.8 million, or $1.29 per share, from $54.5 million, or $2.18 per share, during the comparable year-ago quarter.

Paid subscribers for Peloton, which sells exercise equipment and digital workout class subscriptions, doubled to 562,774 over last year. The stock reversed earlier gains and fell 7.6% during Tuesday’s session.

Shake Shack (SHAK) posted disappointing sales in the third-quarter, eclipsing a solid bottom-line beat and sending shares sinking by nearly 21%. The burger chain posted same-store sales growth of just 2%, short of the 2.9% expected. It guided toward full-year same-store sales growth of just 1.5%, versus the 2% previously suggested.

During the quarter, Shake Shack announced a partnership with GrubHub. Shake Shack’s management said during a call with analysis that it believes “the transition to GrubHub caused some noise” in the third-quarter results and will continue to impact the fourth-quarter and next year.

ECONOMY: ISM non-manufacturing index tops expectations

The Institute for Supply Management’s non-manufacturing index jumped more-than-expected in October, rebounding from September’s three-year low.

The index came in at 54.7 for the month, ahead of consensus expectations for 53.5 and September’s 52.6. Readings above the neutral level of 50.0 indicate expansion.

Within the headline index, subindices for new orders and employment each rose in October, while the prices paid index declined. ISM noted that “respondents continue to be concerned about tariffs, labor resources and the geopolitical climate.”

The results diverged from the IHS Markit U.S. purchasing managers’ index (PMI), which showed a final October reading of just 50.6, down from its previously reported “flash” reading of 51.0. In its release, IHS Markit cited tight labor market as firms “struggled to fill outstanding vacancies” as cause for a decline in its employment index, and said new export orders fell for a third consecutive month.

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck

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