The major averages retreated modestly as investors digested earnings reports and economic releases. Durable goods orders for September were slightly ahead of analyst projections; however, the August number was revised significantly down. A gauge of consumer confidence for October also disappointed, coming in at 97.6 versus expectations of 102.9. In separate releases, data on the services sector disappointed while home prices grew slightly more than analysts were expecting.

In earnings, Pfizer (PFE +2.4%) and Bristol-Myers (BMY +3.4%) rose after each company beat on the top and the bottom line. Alibaba Group (BABA +4.2%) rose after a slight EPS beat and solid mobile sales numbers. Ford (F -5.2%) fell after the company sighted tax headwinds as the rationale for missing earnings expectations. International Business Machines (IBM -4%) fell after disclosing an SEC investigation into the company’s revenue recognition procedures.

Eight of ten sectors in the S&P 500 finished lower on the session. Energy and telecom stocks led the losses while the healthcare sector outperformed. Treasuries moved higher for a second-straight session. The benchmark U.S. 10-year note gained 7/32 to yield 2.03%. Commodities were mixed. WTI crude is slid 1.8% to $43.21/barrel. COMEX gold traded flat at $1166.80/ounce.

Valeant (VRX) halted its steep slide following damaging losses. When recently revisited in the "Featured Stock Update" section of the 10/20/15 report (read here). members were reminded - "Previously featured stocks which were dropped can serve as educational examples of the investment system's tactics. It is also a reminder that high-ranked leaders eventually fall out of favor. The action demonstrates the importance of recognizing sell signals and limiting losses if any stock falls more than -7% from your purchase price. "