Monday November 14, 2016 - Friday November 18, 2016
On Monday, the U.S. dollar continued to rise, based on expectations of a Fed rate hike in December, as well as optimism about a stronger economy with a Trump presidency. U.S. crude fell to settle at $43.32 a barrel as OPEC struggled to cut production. The Dow Industrials closed up slightly to a record high, while the NASDAQ composite fell.
On Tuesday, retail sales for October rose .8% compared to the prior month’s .6% gain, and import prices for October rose .5%, while export prices rose .2%. U.S. Treasury 10 year notes settled at 2.23%, after seeing rates jump 41 basis points in just the prior three trading sessions. The Dow Industrials closed up 54 points to another record high.
On Wednesday, the Producer Price Index for October was unchanged, compared to the prior month’s .3% rise. Industrial production for October was also unchanged, compared to the prior month’s .2% decline. The EIA petroleum status report for the week ending November 11th saw an increase in crude oil inventory of 5.3 million barrels.
On Thursday, the consumer price index for October rose .4%, on top of the prior month’s .3% gain, and housing starts for October surged over 25% to an annualized 1.32 million units. Jobless claims for the week ending November 12th fell 19,000 to 235,000. Markets closed up, with all three major indexes less than ½% away from hitting record highs.
On Friday markets opened slightly lower as oil declined and several Federal Reserve officials made remarks indicating that a December rate hike is appropriate. Now let’s take a look at some stocks.
Samsung Electronics Co., Ltd. agreed to buy U.S. auto-related supplier Harman International Industries, Inc. (NYSE:HAR) in an all-cash deal worth $8 billion, signaling its ambition to enter the world’s automotive technology industry. Under the deal, the South Korean smartphone maker will pay $112 for each of Harman’s shares in cash, a 28% premium relative to Harman’s closing price last Friday. Harman shares rose as much as 25% on the news.
Alibaba Group Holding Limited (NYSE:BABA) shattered its Singles’ day sales record again last week, but investors were not interested as its stock traded more than 3% lower on Monday. The Chinese e-commerce giant only needed 20 hours to break its sales record from last year, recording a total of $17.8 billion worth of gross merchandise volume in its 24-hour e-commerce sales event.
Target Corp. (NYSE:TGT) raised its fourth-quarter sales and full-year guidance after the company’s third-quarter earnings and sales topped analysts’ estimates. The big-box retailer earned $608 million, or $1.06 a share, in the third quarter, beating analysts’ expectations of 86 cents a share. The company said it experienced some decline in revenue due to the sale of its pharmacy business to CVS Health Corp. last year.
China’s online game maker NetEase, Inc. (NASDAQ:NTES) announced a new share repurchase program to buy back up to $1 billion worth of the company’s outstanding shares. Under the terms, the company will repurchase its outstanding ADR Shares during a period not to exceed 12 months. NetEase shares jumped over 6% on the news.