--- title: "Stock Market Today: November 2, 2017" description: stock market today, Federal Reserve, overseas markets, ISM, manufacturing report, employment situation, Facebook, Tesla, Apple, Starbucks, corporate tax rate image: https://investor.valueline.com/hubfs/VL%20Blog%20Images/iStock_000006488152XSmall.jpg --- [![The Value Line Blog](https://investor.valueline.com/hubfs/VL%20Blog%20Images/vl_blog_header.png)](https://investor.valueline.com/blog) [Stock Market Today](https://investor.valueline.com/blog/topic/stock-market-today) # Stock Market Today: November 2, 2017 November 2, 2017 ### **After The Close** The unveiling of a proposed tax reform bill was the headlining story on Thursday. The major indexes spent most the day fluctuating in negative territory. The broad-based S&P 500 and NASDAQ 100 traded in the red for most of the day, hitting their daylong nadirs in the morning. Thereafter, though, the two averages came back in the second part of the session on their way to finishing the day at the roughly breakeven level. The Dow Jones Industrial Average, benefiting from a strong slate of earnings, managed to climb into positive ground around noon. At the closing bell, the blue-chip composite had settled near an all-time high, also boosted by tax-related optimism. Overall, advancing and declining shares were roughly equal in volume. The GOP’s tax proposal, which was initially set for release on Wednesday, was generally well received. While both cyclical and noncyclical consumer good stocks, as well as the homebuilding sector, suffered due in large part to certain interest-reduction provisions, the 20% corporate tax rate and preservation of personal savings products were viewed as positives. Of course, the bill is several stages of approval away from becoming law, so expect this development to be closely watched by the market in the coming weeks and months. Later in the afternoon, President Trump’s announced that he had selected Jerome Powell to lead the Federal Reserve after Janet Yellen’s term expires next year. This disclosure helped to reduce losses across the board. Mr. Powell is considered a stable selection, likely to pragmatically tighten monetary policy in the coming year. This sentiment was evidenced by the upturn in financial stocks that occurred in the final hour of trading. An interest rate hike in December remains the consensus. So, with investors continuing to process the potential impact of the tax reform proposal, as well as largely positive earnings releases from Corporate America, we expect a similar tug-of-war to play out on Friday. One additional factor that will play a large role tomorrow with be the Department of Labor’s monthly jobs report. The expectations are somewhat high following  today’s solid jobless and productivity updates as well as yesterday’s private-sector figures, so disappointing data could open the door for profit takers to control the narrative in the morning hours. Too, quarterly reports from **Apple** ([AAPL ](https://research.valueline.com/research#sec=company&sym=AAPL)– [Free Apple Stock Report](https://research.valueline.com/api/report?documentID=2185-VL_20170929_VLIS_AAPL_172_01-35RJB9J50JKPG3DH72N34FBDKK&symbol=AAPL)) and **Starbucks** ([SBUX](https://research.valueline.com/research#sec=company&sym=SBUX)) are expected after the market closes today. Stay tuned. – Robert Harrington *At the time of this article’s writing, the author did not have any positions in the companies mentioned.* ### **Mid-Day Update - **12:20 PM EDT**** The stock market is putting in a somewhat lackluster performance today. At just past noon in New York, the Dow Jones Industrial Average is up about 21 points; the broader S&P 500 Index is down three points; and the NASDAQ is lower by 13 points. Market breadth shows a divided session, as decliners are just ahead of advancers on the NYSE. From a sector perspective, the consumer and telecom stocks are retreating, while the financials and healthcare issues are making progress. Traders received a few constructive economic news items this morning, with the nation’s employment situation back in the spotlight. Specifically, initial jobless claims dipped to 229,000 in the week of October 28th, coming in a bit lower than had been expected. Of note, tomorrow, the government will deliver the monthly employment report, and that item will be closely watched by traders. In addition, today we received a report showing productivity increased 3% during the third quarter, which was a better-than-expected reading. Meanwhile, in corporate news, we heard from several dynamic issues over the past 24 hours. Specifically, shares of **Facebook** ([FB](https://research.valueline.com/research#sec=company&sym=FB)) are lower, as investors may have concerns about security issues. Further, shares of **Tesla** ([TSLA](https://research.valueline.com/research#sec=company&sym=TSLA)) are slipping after a weak report. After the market closes today, we will hear from **Apple**([AAPL ](https://research.valueline.com/research#sym=AAPL&list=dow30&sec=company)– [Free Apple Stock Report](https://research.valueline.com/api/report?documentID=2185-VL_20170929_VLIS_AAPL_172_01-35RJB9J50JKPG3DH72N34FBDKK&symbol=AAPL)) and **Starbucks** ([SBUX](https://research.valueline.com/research#sec=company&sym=SBUX)). Technically, the stock market has been performing quite well lately. However, equity valuations are a bit elevated, leaving little room for disappointment. Further, traders may be anticipating progress will be made on the tax reform issue, and will be monitoring the developments on that front. – Adam Rosner *At the time of this article’s writing, the author did not have positions in any of the companies mentioned.* ### **Before The Bell** The bulls, who set a further series of all-time record highs last week, but had been held in check so far during this five-day span, got back into the game yesterday morning, as the stock market opened strongly and broadly higher on optimism about earnings. Investors also were looking ahead to the afternoon's announcement by the Federal Reserve (see below), as the central bank was putting the finishing touches on its latest FOMC meeting. Expectations had been that the Fed would stay the course on the interest rate side, and that was just what would transpire. As to the early action, the gains were fueled, as noted, by additional upbeat profit news, as well as by strong performances earlier in the day in the overseas markets, specifically in Asia and across Europe. Regarding earnings, a whole host of companies were due to report after the close; others had issued their statements before the bell had sounded for the start of trading.  Also of note was the economy. To wit, just after the government posted a gain in personal income on Monday, and the Conference Board weighed in with a near-17-year high in consumer confidence, the ISM issued data showing a healthy level of manufacturing last month. Specifically, that organization reported that its monthly survey had registered a reading of 58.7 in October, which was a relatively solid number, being well above the 50.0 minimum expansion level. The result also was just modestly below the September tally of 60.8 and the consensus expectation of 59.5. This pace of industrial activity seems consistent with the recent GDP tally for the third quarter of 3.0%. Tomorrow, we will get issuances on the trade balance, non-manufacturing activity, and monthly employment and unemployment tallies. These latter reports could be market movers. In fact, the jobs figures often are. Meanwhile, the stock market continued to hold firm for much of the morning, but as we headed into the noon hour, some selling ensued, which took the NASDAQ, a session laggard to begin with, slightly into the minus column, while the early increase in the Dow Jones Industrial Average, which had been more than 100 points at its peak, eased back to fewer than 50 points. Meanwhile, the manufacturing report showed particular strength in new orders, prices, and production. All areas gains save for inventories and customers' inventories. All in all, it was another solid economic report. Nevertheless, the market slipped back further as we headed toward the 2:00 PM (EDT) report from the Federal Reserve, with the Dow's advance pared to fewer than 25 points, while the NASDAQ and the Russell 2000 fell more deeply into the red, on selective weakness in technology and smaller issues, respectively. In all, following the quick start, the market had a mixed look, at best, as we moved toward the central bank monetary decision. Weaker issues on the day included the shares of Apple. Recently strong, that issue had fallen back by more than $3.00 a share at midday.      The bulls then stiffened their resolve after the FOMC meeting, in which the Fed opted, to the surprise of virtually no one, to keep interest rates unchanged. However, with its positive outlook, especially on the labor market, the bank clearly left the door open for a rate increase at next month's meeting. Our sense is that the Fed, which already has raised interest rates two times this year, will vote for a third hike at that time. Following the expected monetary action, the market perked up some, with the Dow, which had been up just modestly at 2:00, rising toward the high double-digit range.  But such loftiness could not be sustained, and as the session wound down, so did the averages to a degree, with the Dow, once ahead by about 140 points, ending matters ahead by 58 points. The performance of the other averages were less noteworthy, as the NASDAQ and the Russell 2000 both ended lower on the day. Breaking things down further, gaining stocks held a modest 15-to-13 lead on declining stocks on the Big Board, but were behind, by some 9-to-5 on the NASDAQ. All in all, after the quick start, it was a rather uninspiring finish.  Looking out on a new day, now, we see that shares in Asia were mixed in overnight trading, while in Europe, the Continent's bourses are now tracking in uneven fashion. As to our markets, one day after the Fed meeting and one day ahead of key data on employment, unemployment, and non-manufacturing, the equity futures are now pointing to a modestly lower opening. — Harvey S. Katz, CFA *At the time of this article’s writing, the author did not have positions in any of the companies mentioned.* [![Register now for our free One Stock to Buy webinar](https://no-cache.hubspot.com/cta/default/2532383/5a80130b-f0ce-4bd8-acbd-f077f2232ec5.png)](https://cta-redirect.hubspot.com/cta/redirect/2532383/5a80130b-f0ce-4bd8-acbd-f077f2232ec5) ### Popular Posts Search Search Blog ### Topics - [Investing 101 (2)](https://investor.valueline.com/blog/topic/investing-101) - [Market Commentary (37)](https://investor.valueline.com/blog/topic/market-commentary) - [Stock Highlights (390)](https://investor.valueline.com/blog/topic/stock-highlights) - [Stock Market Today (2071)](https://investor.valueline.com/blog/topic/stock-market-today) Copyright 2026 Value Line, Inc. All Rights Reserved. Factual material is obtained from sources believed to be reliable and is provided without warranties of any kind. 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