Monday March 13, 2017 – Friday March 17, 2017
On Monday, markets were mixed as economic news was slim, and investors waited for the results of Wednesday’s Fed meeting. Ten year treasuries closed at 2.6%, gold closed at $1,204 an ounce, and West Texas Intermediate crude settled at $48.40 a barrel.
On Tuesday, the Producer Price Index for February rose .3% on top of the prior month’s .6% gain.Oil fell more than 1.4% after Saudi Arabia reported an increase in production, despite their agreement to cut. Markets ended the day slightly lower.
On Wednesday, the Consumer Price Index for February rose .1%, compared to the prior month’s .6% gain, retail sales for February rose .1% compared to the prior month’s .4% gain, and the Empire State Manufacturing Survey for March declined 2.3 points to 16.4. The EIA petroleum status report for the week ending March 10th showed crude oil inventories declining 200,000 barrels. The big news however, was the Federal Reserve announced that they will raise the federal funds target range by 25 basis points to between ¾% and 1%. The Fed also stated they expect inflation to stabilize around 2%. Ten year treasuries fell to about 2.5% on the news, however, markets rallied strongly, with the Dow Industrials closing up 112 points.
On Thursday, housing starts for February rose 2.9% to an annualized 1.29 million units, however, permits issued fell 6.1% to 1.21 million. Jobless claims for the week ending March 11th fell 2,000 to 241,000, and the JOLTS job openings report rose 1.5% to 5.63 million. Markets closed mixed, with the Dow Industrials losing 15 points.
On Friday industrial production for February remained unchanged compared to the prior month’s .3% decline. The capacity utilization rate ticked down .1% to 75.4%. Markets opened mostly unchanged on the news. Now let’s take a look at some stocks.
Shares of restaurant chain, Ruby Tuesday, Inc. (NYSE: RT) were up over 20% late Monday as investors were pleased with the company’s decision to consider a sale or merger. Sales for restaurants open at least a year dropped 4% last quarter and revenue also fell roughly 17%, compared to a year earlier. The company continues to struggle while competing with fast-casual dining.
On Monday, U.S. chipmaker Intel Corp. (NASDAQ: INTC) decided to purchase driverless technology firm Mobileye N.V. for $ 15.3 billion, placing itself in a key role in the autonomous-driving market. Intel will assimilate its automated driving group with Mobileye’s operations, with the merged entity being controlled by Mobileye Chairman Amnon Shashua from Israel. Shares of Mobileye were up over 29% on the news.
Canada Goose Holdings Inc. (TSX: GOOS) had its IPO debut on Thursday soaring at the open to $18, for a 40% jump. The company had priced 20 million shares at $12.78 on Wednesday raising $255 million. Canada Goose sells its clothing in 36 countries however, it collects most of its revenue from the U.S.
Oracle Corp. (NYSE: ORCL) announced its third-quarter earnings, with both earnings and revenues beating estimates. Shares of the company soared 6% in early trading Thursday. Revenues for the third quarter of 2017 increased to $9.3 billion, compared to $9 billion a year ago. The company reported adjusted earnings of $0.69 per share, beating estimates of $0.62 per share. Oracle said that the jump in sales was due to its growing cloud-based software and platforms, which increased from $538 million in the same period last year to $1 billion in the most recent quarter.