Monday January 30, 2017 – Friday February 3, 2017
On Monday, pending home sales for December grew 1.6% to 109, after falling 2.5% the prior month. Personal income for December rose .3% on top of the prior month’s .1% gain, consumer spending rose .5%, and the PCE price index rose .2%. Investors were skittish as the future of the U.S.’s immigration policy was debated after President Trump signed an executive order barring entry to the U.S. from seven countries. Markets fell modestly, with the Dow Industrials losing 122 points.
On Tuesday, the Case-Shiller home price index for November rose .9% and consumer confidence for January fell 1.5 points, but remained near its fifteen year high. The employment cost index for the 4th quarter of 2016 showed a tame increase of .5%. Markets closed mixed.
On Wednesday, the ADP employment report for January shattered expectations coming in at 246,000, and the ISM non-manufacturing index for January was up 1.5 to 56 and its highest reading since November 2014. The EIA petroleum status report for the week ending January 27th showed crude oil inventories increasing 6.5 million barrels. The Federal Reserve concluded its meeting Wednesday and did not increase interest rates, which was expected, however, a warning was issued that inflation will rise, as opposed to the prior warning stating that inflation may rise. Markets were up slightly, with the Dow Industrials gaining 26 points.
On Thursday, jobless claims for the week ending January 28th were down 14,000 to 246,000 and non-farm productivity for the fourth quarter of 2016 increased 1.3%, while unit labor costs increased 1.7%.
On Friday nonfarm payrolls for January surged by 227,000, much higher than expectations, and the unemployment rate ticked up .1% to 4.8%. Average hourly earnings increased by .1%. Markets opened strongly higher on the news. Now let’s take a look at some stocks.
Under Armour, Inc. (NYSE: UA) plunged as much as 20% during early trading on Tuesday after the company posted worse-than-expected fourth quarter sales and earnings, raising concerns that years’ of rapid growth have come to an end. The sports-apparel maker said revenue rose 12% to $1.3 billion, its slowest rate of sales growth in eight years. Net income fell to $104.9 million, or 23 cents a share, in the fourth quarter, also missing analysts’ estimate of 25 cents a share.
Tech giant Apple, Inc. (NASDAQ: AAPL) saw its shares reach an all-time high of $128.30 as more than 78 million iPhones were sold last quarter. Apple reported revenue of $78.4 billion and earnings of $3.36 a share beating analysts’ estimates of $3.21 a share. Both revenue and earnings numbers were the highest on record.
Pfizer, Inc. (NYSE: PFE) announced fourth quarter revenues which decreased 3% to $13.6 billion, or a $420 million decline compared to the same period last year. Net income was $775 million, or $0.13 per share, compared to a loss of $172 million from the same period a year ago.
Exxon Mobil Corp. (NYSE: XOM) reported fourth quarter earnings dropped 40%, to $1.7 billion, compared to the same period last year, due to a $2 billion special one-time write-down. Without the write-down earnings would have actually increased 33% to $3.7 billion. Revenues increased 2.2% to $61 billion, which was its first rise in revenues in over two years.