Tuesday's Stock Market Open: Stocks Mixed On Trade Hopes, Corporate Earnings

Optimism over a U.S.-China trade deal were tempered Tuesday by uncertainty over Brexit and disappointing corporate earnings from McDonald’s.

U.S. markets were mixed shortly after noon. The Dow Jones Industrial Average was up 28 points at 26,855 while the Nasdaq was off 15 points at 8,147. The S&P 500 was up 4 points at 3,011.

McDonald’s (MCD) third quarter earnings fell short of estimates, largely due to a struggle to lure U.S. customers away from the competition. McDonald’s reported net profits of $1.6 billion or $2.11 per share, virtually unchanged from year ago results of $1.6 billion or $2.10 a share. Net sales were up 1% at $5.4 billion. Globally, sales were up 5.9%.

UBS (UBS) reported third quarter earnings of $1.3 billion or 28 cents per share, compared with $1.25 billion or 33 cents a share in the year ago quarter. UBS said future profits likely will be negatively impacted by further monetary easing but diversification should help mitigate the decline.

President Trump said Monday trade talks with China are on track. Deputy-level talks took place Monday with higher level talks set for Friday.

“The deal with China’s coming along very well. They want to make a deal,” Trump told reporters.

“They sort of have to make a deal … because their supply chain is going down the tubes.”

Trump said last week he hopes to sign the first phase of a deal next month when he meets with Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation summit.

White House economic adviser Larry Kudlow said 15% U.S. tariffs on consumer goods that are scheduled to go into effect Dec. 15 could be withdrawn if the talks continue to progress. The administration canceled a 5-point increase in tariffs on $250 billion in Chinese goods that had been scheduled to take effect last week.

In Britain, the House of Commons was scheduled to vote at 7 p.m. London time on Prime Minister Boris Johnson’s plan for leaving the European Union by the Oct. 31 deadline. It’s the last chance for Johnson to secure approval before the matter goes to the House of Lords.

Lawmakers have seen only 110 pages of the agreement and many of the members of Parliament resent the speed with which Johnson is attempting to rush the legislation.

Johnson, who has said he’d rather be dead in a ditch than extend the exit deadline, grudgingly asked the EU for an extension should a vote on his plan fail.

In Asia, Hong Kong’s Hang Seng closed up 0.23% while China’s Shanghai Compisite finished 0.5% higher and Japan’s Nikkei 225 was closed for a holiday. Australia’s S&P/ASX added 0.3%.

In Europe, the London FTSE closed up 0.68% while the German DAX was up 0.05% and the French CAC added 0.17%. The Stoxx Europe 600 was up 0.14%.

The British pound was off 0.11% at $1.2946 while the euro was off 0.08% at $1.114. The U.S. dollar index was up 0.08%.

Oil futures were higher. Crude oil was trading 1.65% higher at $54.19 while Brent crude added 1.27% to $59.72. Gold and silver were lower.