Monday June 25, 2018 - Friday June 29, 2018
On Monday new home sales for May rose 6.7% to an annualized 689,000 units. Reports that the Trump administration will propose limits on China’s ability to invest in U.S. technology sent markets tumbling. Markets gained back some losses, after White House trade adviser Peter Navarro said there were no immediate plans to prevent China from investing. Nevertheless, the Dow Industrials finished down 328 points and
closed below its 200-day moving average for the first time since June 2016.
On Tuesday the Case-Shiller home price index for April rose .2% compared to the prior month’s .4% gain. Consumer confidence for June fell 2.4 points to 126.4 on softening expectations for income. U.S. crude shot up 3.5% to $70.48 a barrel after the State Department ordered all companies, both domestic and foreign, to halt imports of Iranian oil by this November. Markets rose slightly, but investors were still cautious due to the seemingly mixed messages regarding trade.
On Wednesday durable goods orders for May declined .6% on top of the prior month’s 1.0% loss, and the EIA petroleum status report for the week ending June 22nd showed crude oil inventory declining a sharp 9.9 million barrels.
On Thursday, the third estimate of the first-quarter GDP was revised down two-tenths of a percent to 2.0% and jobless claims for the week ending June 23rd rose 9,000 to 227,000. U.S. crude continued to rise, closing at $73.34 a barrel.
On Friday personal income for May rose .4% and consumer spending rose .2%. The PCE price index rose .2%. Markets opened sharply higher on strength in the banking sector. Now let’s take a look at some stocks.
AT&T (NYSE: T) announced on Monday that it has entered into an agreement to acquire AppNexus. AppNexus will become part of AT&T’s advertising & analytics, led by Brian Lesser, CEO. AppNexus is a technology company that operates a global advertising marketplace and provides enterprise products for digital advertising.
EdR (NYSE: EDR) on Monday announced that it has entered into a merger agreement to be acquired by Greystar Student Housing Growth and Income Fund, LP. The transaction is all-cash valued at approximately $4.6 billion, including debt to be assumed or refinanced.
Puma Biotechnology, Inc. (NASDAQ: PBYI) announced on Tuesday that a committee within the European Medicines Agency (EMA) has recommended the approval of a marketing application for Neratinib. The drug is an adjuvant treatment of early stage HER2-positive breast cancer. Shares of Puma Biotechnology rose to over $64 after the announcement.
Sonic Corp. (NASDAQ: SONC) on Tuesday announced results for its third quarter ending May 31st. Net income per diluted share increased 32% to $0.58 versus $0.44 in the prior-year period. The company repurchased 1.5 million outstanding shares. Shares fell below $33 on Wednesday post announcement.
The Madison Square Garden Company (NYSE: MSG) announced on Wednesday that its board of directors has authorized the Company’s management to explore a possible spin-off that would create a separately-traded public company comprised of its sports businesses, including the New York Knicks and New York Rangers. Shares of The Madison Square Garden Company reached an all-time high of $304.45.