S&P 500 touches another record | Can Fed keep party going?

S&P 500 touches another record | Can Fed keep party going? | GrubHub, Beyond Meat plunge

TUE, OCT 29, 2019

EVENING BRIEF

AS OF TUE, OCT 29, 2019 • 04:01 ET

DJIA		27070.81
		-0.07%	-19.91

S&P 500		3036.80
		-0.09%	-2.62

NASDAQ		8276.85
		-0.59%	-49.13

Most Active

DOW
NAME	LAST	CHG	%CHG
AAPL	243.29	-5.76	-2.31%
PFE	38.21	+0.93	+2.49%
MSFT	142.83	-1.36	-0.94%

S&P 500
NAME	LAST	CHG	%CHG
AMD	33.03	-0.66	-1.96%
BAC	32.06	+0.22	+0.69%
GE	9.07	UNCH	UNCH

NASDAQ
NAME	LAST	CHG	%CHG
AMD	33.03	-0.66	-1.96%
AAPL	243.29	-5.76	-2.31%
SIRI	6.37	-0.09	-1.39%

EDITOR'S NOTE

GrubHub's more than 40% slide Tuesday should remind investors of an important lesson: If anybody can knock off a business idea, there's a good chance somebody will.

Five Wall Street analysts downgraded the stock, noting vastly increased competition in the food delivery business. Investors buying in at the top should have asked this crucial question: How hard is it to start a food delivery service?

Beyond Meat was another big loser Tuesday, down more than 20%. A lockup period expired and now company insiders can sell for the first time since their spectacular initial public stock offering. A sell-off was to be expected. The company's success, after all, is based on a recipe and recipes can be copied.

WeWork, which recently dashed plans for an IPO, has the same issue. It's mostly just a marketing fete to lease office space and break it up into coworking units. The barriers to entry are just not high enough to keep competitors at bay.

Stocks were little changed Tuesday, but the gains were enough to push the S&P 500 to a new high.

There is nearly a 100% chance the Federal Reserve will announce another rate cut as it finishes its October meeting tomorrow, at least according the CME FedWatch Tool.

Some Fed watchers are also pondering whether the central bank will resort to another big expansion of its balance sheet, writes CNBC's Patti Domm. The Fed has already taken temporary steps to fund the overnight funds market that banks rely upon for short-term liquidity. A permanent solution is needed, but Fed Chairman Jerome Powell isn't likely to have one tomorrow.

It's a safe bet the Fed will again promise to do whatever it takes to keep our slowing-but-still-going expansion in gear. It's also a safe bet that whatever it does, it won't be enough for Donald Trump.

"The Fed doesn't have a clue!" the president tweeted Tuesday. "We have unlimited potential, only held back by the Federal Reserve."

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