Monday, July 18, 2016 - Friday July 22, 2016
Monday started off with markets up modestly when Bank of America beat quarterly earnings and revenue estimates, and IBM beat earnings. The housing market index for July showed a one point decline to 59, but still far above the breakeven point of 50. The yield on 10-year Treasury notes rose slightly to 1.58%. Both the Dow Industrials and the S&P 500 closed at record highs.
On Tuesday, housing starts for June rose 4.7% to an annualized 1.189 million units. Continued strong earnings help push the Dow Industrials to close at another high.
On Wednesday, the EIA petroleum status report for the week ending July 15th was released and crude oil inventories declined by 2.3 million barrels. Bank stocks continued to surpass earnings expectations and Microsoft contributed to market gains with its earnings and revenue beat. The Dow Industrials and S&P 500 closed at record highs. The NASDAQ composite had its highest close of the year, due to gains in biotech.
On Thursday, jobless claims for the week ending July 16th dropped 1,000 to 253,000 and existing home sales for June rose 1.1% to an annualized 5.57 million units. West Texas Intermediate crude dropped over 2% to close at $44.75 a barrel. After 9 days of gains, the Dow Industrials closed down 77 points.
On Friday, the flash PMI manufacturing index for July was up 1.5 points to 52.9. Markets opened mostly unchanged on mixed earnings reports.
Now let’s take a look at some stocks.
Netflix (NASDAQ: NFLX) shares dropped as much as 15% Monday during after-hours trading, after the popular streaming company reported 2nd quarter earnings. The company failed to beat its own expectations, adding about 1.7 million subscribers during the quarter, compared to expectations of 2.5 million.
Shares of Microsoft (NASDAQ: MSFT) spiked Tuesday, after the technology giant posted their fiscal fourth-quarter earnings, easily topping analyst’s expectations and showing unusually strong revenue growth. The company’s cloud product, Azure, saw revenue grow 102%. Microsoft reported earnings of $0.69 per share, on revenue of $22.6 billion.
American global technology company Intel (NASDAQ: INTC) announced second quarter earnings surpassing analyst’s expectations, with earnings of $0.59 per share on revenue of $13.5 billion. However, concerns grew after the company’s reported revenue from its data center business and its “Internet of Things” group both missed missing analysts’ expectations. Shares fell more than 3.5% after the news.
Shares of Dominos (NYSE: DPZ) jumped more than 5% hitting a new all-time high after the pizza restaurant chain released quarterly earnings and surprised investors. Net income increased to $49 million on revenue of $547 million. The company’s domestic same-store sales increased by 9.7%, and its international same-store sales increased by 7.1%.eBay (NASDAQ: EBAY) shares surged more than 7% after the online marketplace reported second quarter net revenue for the company that increased by 6% to $2.2 billion with earnings of $0.38 per share. The board also approved an additional $2.5 billion stock repurchase plan.