Monday February 12, 2018 - Friday February 16, 2018
Monday started off strong with the Dow Industrials roaring back and closing 410 points higher, along with the S&P 500 gaining 1.4% and the Nasdaq composite gaining 1.6%.
On Tuesday, the NFIB small business optimism index for January rose 2 points to 106.9 and markets continued rising, although more modestly.
On Wednesday the highly anticipated consumer price index for January came out and rose .5%, higher than expected, although the year over year change was 2.1%, still within expectations. Retail sales for January declined .3%, below expectations and business inventories for December rose .4% on top of the .4% rise from the prior month. The EIA petroleum status report for the week ending February 9th showed crude oil inventory increasing 1.8 million barrels. Markets surged with the Dow Industrials closing 253 points higher and the Nasdaq composite advancing 1.9%. Yield on 10 year Treasuries rose to 2.91%, and West Texas Intermediate crude rose 2.5% to $60.68 a barrel. Gold rose 1.7% to $1,352 an ounce, its biggest gain since last May.
On Thursday, jobless claims for the week ending February 10th increased 7,000 to 230,000, the producer price index for January rose .4% month over month and 2.7% year over year, and industrial production for January declined .1%. Market volatility was high, however, the Dow Industrials ended the day up 306 points and the Nasdaq composite gained 1.6%.
On Friday import prices for January rose a stronger than expected 1% and export prices rose .8%. Housing starts for January rose 9.7% to an annualized 1.326 million units. Markets opened higher on the news. Now let’s take a look at some stocks.
General Dynamics (NYSE: GD) and CSRA Inc. (NYSE: CSRA) announced Monday morning, that General Dynamics will acquire all outstanding shares of CSRA for $40.75 per share in cash. The transaction is valued at $9.6 billion, including the assumption of $2.8 billion in debt. CSRA reached a new all-time high of $40.65 per share this week.
Under Armour, Inc. (NYSE: UAA) announced financial results for its fourth quarter Tuesday morning. Revenue was up 5% to $1.4 billion while full year 2017 revenue was up 3% to $5 billion. Full year 2018 gross margins are expected to increase 45.5% due to adjustments in promotional activity and product costs. Under Armour shares surged after the announcement and reached a high of $18.48 on Thursday.
Weibo Corporation (NASDAQ: WB) announced financial results for its fourth quarter and whole year ending December 31st, 2017. Fourth quarter net revenue totaled $377 million, an increase of 77% year-over-year, exceeding the Company's guidance. Advertising and marketing revenues were $332 million, an increase of 77% year-over-year. The company’s stock reached an all-time high of $142.12 per share on Thursday.
Baidu, Inc. (NASDAQ: BIDU) on Tuesday reported fourth quarter total revenue of $3.62 billion, up 29% year over year. Operating profit was $734 million, up 118% year over year. Adjusted EBITDA was $1.05 billion, increasing 78% year over year, or 29% of total revenues. Baidu’s shares rose to over $248 on Thursday.
On Tuesday afternoon, Chipotle Mexican Grill (NYSE: CMG) announced that its Board of Directors appointed Brian Niccol, as chief executive officer of the company, effective March 5th. Niccol previously served as CEO of Yum! Brands’ Taco Bell Division. After the announcement, Chipotle surged over 15% on Wednesday.