The daily business briefing: October 29, 2019

1. S&P 500 closes at record high

The S&P 500 index gained nearly 0.6 percent on Monday to close at an all-time high at the start of one of the biggest weeks of earnings season. The Dow Jones Industrial Average rose by 0.5 percent, and the Nasdaq gained 1 percent. "Despite some high-profile misses, earnings season has been generally positive," said Kristina Hooper, global market strategist at Invesco. "It's no surprise stocks have reached a new sugar high." Microsoft, Intel, and AT&T are among the companies that have given Wall Street a lift with strong quarterly reports. Big financial news also will affect markets this week. The Federal Reserve starts a two-day meeting Tuesday that is expected to end with a quarter-point interest rate cut.

The Washington Post

2. Parliament brushes off Johnson proposal for early election

Britain's Parliament on Monday rejected Prime Minister Boris Johnson's call for an early election on Dec. 12. Johnson's latest setback came after he begrudgingly accepted the European Union's offer to extend the Brexit deadline until Jan. 31. Johnson hoped to break the impasse in Parliament over Brexit by holding an early vote and regaining a majority in favor of his deal on exiting the EU. He says this Parliament has "run its course" and is "incapable" of getting Brexit done. The opposition Labour Party blocked a call for early elections by abstaining so there wouldn't be a quorum, which is necessary to call elections. Labour says it won't back an election until Johnson takes a no-deal Brexit off the table.

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up

BBC News The Washington Post

3. Alphabet shares drop after hours following earnings miss

Google parent Alphabet on Monday reported quarterly earnings per share that fell short of expectations. The company's stock fell in after-hours trading by as much as 4 percent before regaining some of the losses. Alphabet said its third quarter earnings came in at $10.12 per share, significantly shy of Refinitiv consensus estimates of $12.42 per share. Revenue was $40.5 billion, just over the $40.32 billion expected. The company also roughly met expectations on its traffic acquisition costs, which came in at $7.49 billion. Investors watch that figure closely to judge how well Google is doing.

CNBC

4. Toyota, GM, Chrysler back White House in fight over California emissions rules

A coalition of automakers including General Motors, Toyota, and Fiat Chrysler on Monday backed the Trump administration's litigation against California over the state's tailpipe emissions standards. The move exposed a split among major automakers. Honda, Ford, BMW of North America, and Volkswagen reached a deal with California regulators over the summer to make more fuel-efficient vehicles under the state's standards through 2025. The Trump administration is trying to block the state from setting its own levels under the Clean Air Act, and to undo Obama-era fuel standards. Association of Global Automakers President John Bozzella said the coalition doesn't necessarily agree with the White House's move, but thinks California and the federal government should reach a compromise and develop national fuel economy standards.

The Washington Post

5. Beyond Meat reports first quarterly profit but shares fall

Beyond Meat shares dropped by 7 percent in after-hours trading after the company posted its first quarterly profit, but it fell short of investors' hopes. The company said quarterly sales surged by 250 percent from the same time last year, reaching $92 million. Net income reached $4.1 million, compared to a $9.3 million loss in the same period a year ago. The company's shares are down to about $100 from a high of nearly $240, although they're still four times higher than their debut price of $25. The company said it was expanding its distribution footprint and now expected 2019 sales between $265 million and $275 million, just above Wall Street's current estimate of $264 million.

CNN