This week was shortened due to stock markets closing Friday for Good Friday. On Monday the Empire State manufacturing survey came in at 10.1, compared to the prior month’s 3.7. Markets fell on disappointing earnings from banks and airlines continued to suffer from the grounding of Boeing’s 737 MAX planes. Treasury Secretary Steven Mnuchin said that the U.S. and China were nearing the final round of trade negotiations.
On Tuesday industrial production for March fell .1% compared to the prior month’s .1% gain and the housing market index for April rose 1 point to 63. Health care stocks declined as proposed government legislation created uncertainty, however, broader markets rose slightly.
On Wednesday the trade deficit for February came in at $49.4 billion, declining $1.7 billion from the prior month and the EIA petroleum status report for the week ending April 12th saw crude oil inventory decline 1.4 million barrels. The Federal Reserve released its Beige Book, which reports economic conditions, and describes consumer spending as mixed to sluggish, employment as still growing and also notes that tight labor is continuing to put moderate pressure on wages. Health care stocks continued to decline on fears of government regulation and China’s economy, industrial production, and retail sales all grew better than expected. Markets ended the day slightly lower.
On Thursday jobless claims for the week ending April 13th declined 5,000 to 192,000, its lowest level since 1969, and retail sales for March increased a stronger-than-expected 1.6% compared to the prior month’s .2% decline. Markets opened higher on the news, but the health care sector continued exerting downward pressure on markets. Now let’s take a look at some stocks.
Aphria Inc. (NYSE: APHA) shares plunged by 13% on Monday morning after reporting its third quarter results. The cannabis-based company saw losses widening to CAD 43 cents per share, however, revenue surged 617% year-over-year to CAD 73.6 million. Kilograms sold fell to 2,636 from 3,408, while the average retail selling price for medical cannabis increased to CAD 8.03 per gram from 7.51 per gram.
Lyft Inc. (NASDAQ: LYFT) shares edged lower by 4.4% on Monday morning after the ride-hailing service company pulled thousands of electric bikes from several cities. Lyft removed bikes in New York, Washington, and San Francisco because of a braking problem. The company is trying to replace about 3,000 of the problematic bikes with traditional bikes to prevent service interruptions. The Company operates about 17,000 traditional bikes in those cities.
QUALCOMM Incorporated (NASDAQ: QCOM) shares surged by almost 42% late Tuesday into Wednesday’s open after the company and Apple agreed to dismiss all litigation between the two. Both companies also reached a six-year license agreement, effective April 1st, 2019, including a two-year option to extend, and a multiyear chipset supply agreement.
IBM (NYSE: IBM) reported its first quarter results after the market close on Tuesday, coming in with earnings of $2.25 per share on revenue of a little over $18 billion. Earnings didn’t disappoint, however, revenue was lower than expected which caused shares to fall by 4%. IBM reiterated its full-year earnings guidance of $13.90 per share.
Netflix, Inc. (NASDAQ: NFLX) reported its first quarter results after market close on Tuesday, with the streaming giant earning 76 cents per share on revenue of $4.5 billion. The company saw its revenue increase 22% year-over-year, while domestic paid subscriber additions was 1.7 million for the quarter and international paid subscriber additions was almost 7.9 million. Netflix also provided a lower guidance, causing shares to fall by 1% on Wednesday.