Monday June 18, 2018 - Friday June 22, 2018
On Monday the housing market index for June fell 2 points to 68, but tariffs were still the big news after the U.S. and China exchanged more threats last week. The Dow Industrials closed 103 points lower for its 5th straight decline.
On Tuesday housing starts for May rose 5% to an annualized 1.35 million units however permits fell 4.6% to 1.3 million. President Trump asked his administration to identify an additional $200 billion worth of Chinese goods to slap a 10% tariff on. Markets fell again with the Dow Industrials down 287 points.
On Wednesday existing home sales for May fell .4% to an annualized 5.43 million units and the EIA petroleum status report for the week ending June 15th saw crude oil decline 5.9 million barrels. Federal Reserve Chair Jerome Powell gave a speech saying the economy is strong and that moderate wage growth shows that labor markets aren’t yet too tight. He also noted that although the 2% inflation goal is almost met, there is still some softness left in inflation.
On Thursday jobless claims for the week ending June 16th fell 3,000 to 218,000 and the Philadelphia Fed business outlook survey fell 14.5 points to 19.9. Once again, fears of trade wars dominated investor sentiment and markets dropped with the Dow Industrials losing 296 points, to continue its eight-day losing streak.
Now let’s take a look at some stocks.
Gevo, Inc. (NASDAQ: GEVO) shares surged to over $23 on Tuesday after the Environmental Protection Agency raised the amount of isobutanol used for on-road automobiles. Patrick Gruber, Chief Executive Officer of Gevo, said, the higher blend of isobutanol at 16% was previously used only for boats and off-road applications and helps meet demand for the ethanol free segment of the gasoline market.
Rent-A-Center, Inc. (NASDAQ: RCII) announced on Monday that it has entered into an agreement with Vintage Rodeo Parent, LLC, an affiliate of Vintage Capital Management, LLC, pursuant to which Vintage will acquire all of the outstanding shares of Rent-A-Center common stock for $15.00 per share in cash. Rent-A-Center jumped to $14.68 per share at the close on Monday.
Sarepta Therapeutics, Inc. (NASDAQ: SRPT), focused on the discovery and development of genetic medicine to treat rare neuromuscular diseases, announced on Tuesday positive preliminary results from its Phase 1/2a gene therapy clinical trial assessing its AAVrh74 treatment in individuals with Duchenne muscular dystrophy. Shares surged to over $165 on Tuesday post announcement.
Micron Technology, Inc. (NASDAQ: MU), announced on Wednesday, results of operations for its third quarter of fiscal 2018, ending May 31st. Revenues of $7.80 billion are up 40% year-over-year and operating cash flow was $4.26 billion, compared to $2.41 billion for the same period a year ago.
Darden Restaurants, Inc., (NYSE: DRI) reported on Thursday its financial results for the fourth quarter and fiscal year ending May 27th. Total sales from continuing operations increased 10.3% to $2.13 billion. The company repurchased approximately $27 million of outstanding common stock. Darden Restaurants reached an all-time high of $107.74 per share.