U.S. equity indexes hit fresh all-time highs as U.S.-China trade optimism grew
The week started with a bang as stock market indexes hit fresh record highs, brushing off the McDonald's (MCD) CEO ouster, as optimism over U.S.-China trade talks resurfaced. This optimism was carried throughout the week, bolstered by news that both governments planned on rolling back some of the $125 billion in tariffs imposed in September. This helped buoy shares for the remainder of the week, with the Dow clocking two more all-time-highs for the week, and the Nasdaq and S&P joining in on Thursday.
Markets stumbled on Friday however, as President Donald Trump walked back the aforementioned tariff truce, offsetting bullish momentum that followed Disney's (DIS) massive earnings beat. This win joined reports from fellow blue chips Walgreens Boots Alliance (WBA) and Boeing (BA) that put some wind at the Dow's back earlier in the week.
Analysts Chatter Abounds During Earnings Season
The brokerage bunch was busy this week as earnings season rages on, with several analysts speculating on stocks before and after their big reveals. J.P. Morgan Securities was especially vocal. On Monday, the broker upped its price target on Alibaba (BABA) stock in the session following its quarterly report, but slashed its target for Square (SQ).
Jefferies got in on the action, too, downgrading Papa John's (PZZA) stock to a "hold" ahead of the firm's Wednesday confessional, while over 13 analysts hit Expedia (EXPE) with post-earnings bear notes. Elsewhere, D.A. Davidson set a bearish precedent for Canada Goose (GOOS) ahead of next week's report, while Goldman Sachs bestowed a bull note on Manitowoc Company (MTW) after its earnings beat.
Stocks Making Big Moves on Mergers
Several stocks were making M&A headlines this week. Most notable is the buzz surrounding Xerox's (XRX) proposed takeover of HP (HP), which first moved the stocks on Wednesday. By Friday, however, reports suggested some doubts on HP's end could snuff out the deal. In other buyout news, Taylor Morrison Home (TMHC) announced it would be purchasing rival William Lyon (WLH) in a cash-and-stock deal worth $2.4 billion.
Meanwhile, electric car maker Nio (NIO) inked a partnership with Intel's (INTC) Mobileye, Canopy Growth (CGC) signed a deal with Canadian rapper Drake in a joint venture called More Life Growth, and First Horizon (FHN) merged with Iberiabank (IBKC) under the former's name.
Wall Street Gears Up for Powell Speech Next Week
Earnings will continue to roll in next week with the retail sector mainly in focus. Specifically, Walmart (WMT), Canada Goose, JD.com (JD) and J C Penney (JCP) are set to report. Weed stocks will be burning up too, with earnings from Tilray (TLRY) and Canopy Growth both on tap.
The Federal Reserve will also be in focus next week, with a handful of speeches from central bank officials -- namely, Fed Chair Jerome Powell -- on tap, along with a pair of key inflation updates, including the consumer price index (CPI) on Thursday. Investors should note that the bond market will be closed Monday for Veterans Day, while the stock market will remain open.