Monday February 19, 2018 - Friday February 23, 2018
Markets were closed Monday for the President’s Day holiday.
On Tuesday, Walmart reported disappointing earnings and saw its shares fall over 10%, setting the stage for a broader market selloff. The U.S. Treasury sold $179 billion worth of debt, boosting interest rates to levels not seen since 2008. The Dow Industrials ended the day down 254 points.
On Wednesday, the flash PMI for February rose 2.1 points to 55.9 and existing home sales for January fell 3.2% to an annualized 5.38 million units. The Fed released minutes from its January 31st meeting. Participants increased their estimates of economic growth for 2018, as well as expressing cautious optimism that inflation will hit their 2% target in the medium term. Ten year Treasuries jumped on the news to yield 2.94%, and the Dow Industrials closed 166 points lower.
On Thursday jobless claims for the week ending February 17th fell 7,000 to 222,000 and the EIA petroleum status report for the week ending February 16th saw crude oil inventory falling 1.6 million barrels. Market volatility remained higher than normal as investors were nervous about the Fed raising interest rates on news of the strengthening economy. The Dow Industrials closed up 164 points, however, the Nasdaq composite fell slightly.
On Friday markets opened higher as investors continued watching and waiting to see if ten year Treasuries crossed 3%. Now let’s take a look at some stocks.
Walmart Inc. (NYSE: WMT) reported its fourth quarter results Tuesday morning and missed earnings estimates. Operating income fell sharply by 28% year over year, to $4.5 billion for the quarter. E-Commerce sales grew 23%, but showed signs of slowing. The previous quarter, Walmart reported e-Commerce sales growth of over 50%. Shares of the company fell to as low as $91.31 on Thursday.
Qualcomm River Holdings B.V., an indirect wholly owned subsidiary of Qualcomm, announced Tuesday morning that it has reached agreement with NXP Semiconductors N.V. (NASDAQ: NXPI) to increase its offer to $127.50 per share to purchase all outstanding shares of NXP. Shares of NXP Semiconductors surged, reaching an all-time high of $125.93 per share.
Home Depot Inc. (NYSE: HD) on Tuesday posted fourth-quarter sales and earnings that topped analysts’ estimates, boosted by strong demand for the home-improvement products. The company said revenue rose 7.5% to $23.9 billion, earning $1.69 per share. Same-store sales, rose 7.5%
Advance Auto Parts, Inc. (NYSE: AAP) announced Wednesday morning, its financial results for the fourth-quarter and full year. Operating cash flow increased 14.8% to $600 million for full year 2017 and free cash flow was up 55.9% to $411 million. The increase was primarily driven by optimization of working capital and disciplined capital spending. Advanced Auto Parts traded above $119 per share post announcement. .
Roku Inc. (NASDAQ: ROKU) on Thursday reported fourth-quarter revenue topping analysts’ estimates, however, the company provided a weak sales guidance for the first quarter, sending its shares down over 17%. Roku said fourth-quarter revenue grew 28% to $188 million, driven by strong growth in platform revenue. The company now expects first quarter sales to be $120 million to $130 million.