Stock market news today October 23

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Stocks are doing something not seen since the tech bubble
— and it’s a signal the decadelong bull market is on its last
legs

A troubling pattern has emerged as the third-quarter earnings
season enters its peak.

Investors are
not rewarding companies that beat earnings and sales
expectations, according to Bank of America Merrill Lynch.

This is happening for the first time since the tech bubble burst
in 2000, and it can be interpreted as a late-cycle signal.

The Dow drops more than 500 points

Wall Street
shuddered Tuesday, mirroring a risk-off sentiment around the
world, as geopolitical tensions and the prospect of slowing
economic growth continued to rattle investors. 

The Dow dropped 2%, or more than 525 points. The Nasdaq composite
fell 2.6%, and the S&P 500 was down 2.1%.  

“There weren’t any major new developments overnight,” David
Lefkowitz, senior Americas equity strategist at UBS, said in an
email. “Instead, the market continues to be focused on some of
the macro issues that have been weighing on the market for the
past few weeks including higher interest rates, trade frictions,
and pockets of softness in the global economy.”

Industrial companies sank after corporate earnings in the sector
disappointed. 3M (-8%) missed on both the top and bottom
line and slashed its profit forecast for the
year. Caterpillar (-7.8%) beat
profit expectations but lowered its guidance, warning tariffs
would push up its costs. 

Short seller Andrew Left is doing a 180 on Tesla because
it’s ‘destroying the competition’

Tesla jumped 5% Tuesday after short
seller Andrew Left
changed his view and bought shares ahead of the company’s crucial
third-quarter earnings report.

“Tesla is destroying the
competition,” Left said in a published Tuesday by his firm,
Citron Research. 

“For the first time, Citron is long Tesla as the Model 3 is a
proven hit and many of the TSLA warning signs have proven not to
be significant.”

A Rockefeller investor and ex-BlackRock vice chair are
funding a fintech startup to tap into a $23 trillion market in
the hottest area of investing

Sustainable investing is a big business, and it’s only getting
bigger. JPMorgan values the socially responsible investing market
at almost $23 trillion, according to an April
report, with US assets in particular up
200% over the last decade.

One New York-based startup is tapping into this trend, trying
to bridge the gap between investors and the ever-increasing world
of sustainable-focused products. Ethic, founded in 2015, works to
create investing portfolios that can be customized for
individuals and institutions.

On Tuesday, the startup announced it raised $6.8 million in its
first funding round.

New York City has more penthouses available than it can
fill

The penthouse apartment, which occupies the highest floor of a
residential building, has long been synonymous with wealth and
luxury.

But for affluent New Yorkers,
the luxury penthouse apartment seems to be losing its allure.

New York City has a surplus of
penthouses on the market, according to The
Real Deal. There were 443 penthouses for sale in the city as of
October 12, a 16% increase from the same time in 2017. And 81 of
those units are asking more than $15 million, The Real Deal
reported.

In markets news