Tuesday May 30, 2017 - Friday June 2, 2017
On Monday, U.S. markets were closed for the Memorial Day holiday.
On Tuesday, personal income for April rose .4% on top of the prior month’s .2% gain, and consumer spending rose .4% on top of the prior month’s .3% gain. The PCE price index rose .2%. The Case-Shiller home price index for March rose .9% and consumer confidence for May fell 1.5 points to 117, still considered very strong.
On Wednesday, the pending home sales index for April fell 1.3% and the Federal Reserve released its Beige Book, noting that certain areas of the economy are slowing and flattening out, and consumer spending is not as strong as it could be. The Fed also acknowledges that even though the labor market is tight, wage growth is not strong. Markets ended down slightly, however, for the month of May, the S&P 500 gained 1.2% and the Nasdaq composite gained 2.5%.
On Thursday, the ADP employment report for May came in at 253,000 compared to the prior month’s 174,000. Jobless claims for the week ending May 27th rose 13,000 to 248,000. The ISM manufacturing index for May rose 1/10 of point to 54.9 and construction spending for April fell 1.4%. The EIA petroleum status report for the week ending May 26th saw crude oil inventories decline by 6.4 million barrels, it’s eighth weekly decline. Ten-year treasury yields ended at 2.21% and West Texas Intermediate Crude closed at $48.15 a barrel.
On Friday, nonfarm payrolls for May were unexpectedly weak, coming in at 138,000, while the unemployment rate ticked down .1% to 4.3%. Average hourly earnings rose .2%. Markets opened up slightly higher on the news. Now let’s take a look at some stocks.
Michael Kors Holdings Ltd. (NYSE: KORS) on Wednesday reported fiscal fourth-quarter sales and earnings that missed analysts’ estimates. The company also announced that it will close 100 to 125 locations within the next two years. The retailer of apparel, handbags and accessories said total sales fell 11.2% to $1.06 billion in the fourth quarter, compared with $1.2 billion a year ago.
Exact Sciences’ (NASDAQ: EXAS) shares rallied when United Health Group said they would cover use of Exact Sciences’ colon cancer test called Cologuard. Analysts estimate that United Health Group will add about 30 million customers eligible to use the test. Exact Sciences hit an all-time high of $38.92 per share on Thursday.
Palo Alto Networks, Inc. (NYSE: PANW) reported fiscal third quarter revenue that topped analysts’ estimates, sending the stock up more than 16%. The security software company said total revenue rose 25% to $431 million compared with $345 million a year ago. Share prices reached a high of $139.97 Thursday with over 12 million shares traded.
Hewlett Packard Enterprise Company (NYSE: HPE) shares fell over 6% Thursday morning as the company released earnings for their second quarter, showing a sharp decline in sales in their largest division that sells servers, networking and data storage equipment. Net revenue from continuing operations was $7.4 billion, down 13% from the prior-year period.
On Thursday after market close, Lululemon Athletica Inc. (NASDAQ: LULU) shares increased in value by about 10%, after releasing results for the first quarter ending April 30th, along with a plan to restructure its ivivva operations. The Company reported diluted earnings per share of $0.23, including the restructure and $0.32 per share excluding. The company’s CEO stated that the outlook for the remainder of 2017 is strong.