Monday July 3, 2017 - Friday July 7, 2017
On Monday, the PMI manufacturing index for June was down 7 tenths of a point to 52, while the ISM manufacturing index for June jumped 2.9 points to 57.8, its highest reading since August of 2014. Construction spending for March remained unchanged compared to the prior month’s 1.4% decline. The Dow Industrials closed up 129 points for a new high, but it came at the expense of tech stocks, and the Nasdaq composite fell 30 points.
Markets were closed Tuesday for the 4th of July holiday and on Wednesday, factory orders for March dropped .8% on top of the prior month’s .2% decline. The Federal Reserve released minutes from its most recent meeting and it showed members were perplexed as to why recent rate hikes by the Fed have had no effect. They also discussed when they would start to unwind $4.5 trillion worth of bond holdings, and it appeared that more members wanted to start later in the year.
On Thursday, the ADP employment report for June came in a bit lower than expected at 158,000, compared to the previous month’s 230,000 and jobless claims for the week ending July 1st rose 4,000 to 248,000. The EIA petroleum status report for the week ending June 30th saw crude oil inventories fall by 6.3 million barrels, however, U.S. crude rose 39 cents to settle at $45.52 due to rising production.
On Friday, nonfarm payrolls for June rose a much greater than expected 220,000, and the unemployment rate was 4.4%, while average hourly earnings rose .2%. Markets opened higher on the news. Now let’s take a look at some stocks.
Greystar Real Estate Partners, the largest operator of apartments in the U.S., announced on Tuesday that it will acquire luxury U.S. apartment developer, Monogram Residential Trust, Inc. (NYSE: MORE) in a deal valued at about $3 billion. Shareholders will receive $12 per share in cash in the deal, representing a 22% premium over Monogram’s closing price on July 3rd.
Diebold Nixdorf Incorporated (NYSE: DBD) adjusted its financial outlook for the company for fiscal Year 2017. Earnings per share estimates are now $0.95 - $1.15 down from previous projections of $1.40 - $1.70. Analyst had estimated $1.58. The company fell to a new 52-week low of $20.10 during Thursday trading.
On Wednesday morning, Nevro Corp. (NYSE: NVRO) announced revenue for its second quarter is expected to range from $77.5 to $78 million. Full year revenue for 2017 is expected to be $310 - $320 million. Shares surged to over $82 on Wednesday.
Yum China Holdings, Inc. (NYSE: YUMC) late Wednesday reported second quarter sales that missed analysts’ estimates, due to slower growth in its Pizza Hut chain. The firm operates KFC, Pizza Hut and Taco Bell in China and reported second quarter sales that fell 0.4% to $1.59 billion. Shares fell over 13% to below $35.00 on Thursday.
Biopharmaceutical company Celgene Corp. (NASDAQ: CELG) is paying $263 million upfront for a 5.9% stake in BeiGene, Ltd. NASDAQ: BGNE) in a deal worth upwards of $1 billion. Celgene will aid Beigene in development and commercialization of its cancer immunotherapy treatment for solid tumor cancers. Beigene reached an all-time high of $68.67 per share on Thursday.