On Monday factory orders for February declined .5% compared to the prior month’s unchanged result. The Trump administration threatened to place about $11 billion in tariffs on European goods in retaliation for WTO violations. However, markets were mixed as investors awaited the start of earnings season.
On Tuesday the JOLTS job openings report for February dropped a sharp 7.1% to 7.087 million openings. The grounding of Boeing jets hit the airline sector especially hard and the Dow Industrials lost 190 points and 10 year Treasuries yielded 2.49%.
On Wednesday the consumer price index for March rose .4% on top of the prior month’s .2% gain and the EIA petroleum status report for the week ending April 5th saw crude oil inventories rise 7 million barrels. The Federal Reserve released minutes from its last meeting and the majority of members did not see interest rates changing this year. Members said, due to soft first quarter growth, more time was needed to see if weakness was temporary. Also, a path to eliminate quantitative tightening was announced with September as the last month the Fed would be reducing their balance sheet. Markets ended the day modestly higher.
On Thursday jobless claims for the week ending April 6th fell 8,000 to 196,000, its lowest level since 1969. The producer price index for March rose a steeper than expected .6% on top of the prior month’s .1% gain. Trading activity fell to its lowest level of the year as investors continued to wait for earnings.
On Friday import prices for March rose .6% while export prices rose .7%, higher than expected. Markets opened higher on some strong corporate earnings news. Now let’s take a look at some stocks.
New Age Beverage Corporation (NASDAQ: NBEV) shares surged on Monday after the company announced that it will begin distribution with Walmart. New Age acquired the Marley brand in 2017 and restructured it into an organic mate and cold brew. U.S. Marley brands also plans on launching CBD drinks in 2019. New Age shares closed 38% higher on Monday.
American Airlines Group Inc. (NASDAQ: AAL) on Tuesday slashed its guidance for its upcoming first quarter due to the continued grounding of its Boeing 737 MAX jets. American Airlines’ shares slipped by 3.3% following the revised outlook. The Company said first quarter revenue per seat mile, a major industry performance measure, is expected to be flat to up 1% compared to its previous guidance of flat to up 2%. American Airlines also expects to pay about 5 cents a gallon more for jet fuel than previous estimates.
Delta Air Lines, Inc. (NYSE: DAL) announced first quarter earnings of 96 cents per share on revenue of $10.5 billion, beating earnings estimates by 6 cents per share. Delta said that revenue was driven by various improvements like an 8% increase in premium product ticket revenue and double-digit percentage increases across loyalty, maintenance, repair, and overhaul revenue. Revenue per available seat mile increased 2.4%. Shares rose 2% during Wednesday’s trading.
Bed Bath & Beyond Inc. (NASDAQ: BBBY) reported its fourth quarter financial results after the market close on Wednesday with earnings of $1.20 per share on revenue of $3.3 billion. The home retailer beat earnings estimates but missed on revenue, which sent shares 11% lower on Thursday morning. For improved short-term growth, the company will modify pricing algorithms, further optimize coupon strategies, and improve its supply chain.
Intercept Pharmaceuticals, Inc. (NASDAQ: ICPT) announced on Thursday additional supportive data from its pivotal Phase 3 REGENERATE study in patients with liver fibrosis due to NASH. The news sent Intercept shares lower by almost 12% after investors and analysts noted that other larger biotechnology companies are also developing NASH drugs and the competition could overshadow Intercept’s results.