Monday April 23, 2018 – Friday April 27, 2018
On Monday, the PMI composite flash for April rose a half point to 54.8, and existing home sales for March rose 1.1% to an annualized 5.6 million units. Market fell on tech sector weakness and rising interest rates and the U.S. dollar rose.
On Tuesday the Case-Shiller home price index for February rose .8% on top of the prior month’s .8% gain and new home sales for March rose 4% to an annualized 694,000 units. Consumer confidence for April rose 1.7 points to 128.7. Markets declined sharply as the yield on 10 year Treasuries rose above 3% for the first time since January 2014. Also, markets weren’t happy with Caterpillar’s guidance stating that the first quarter was as good as this year will get.
On Wednesday the EIA petroleum status report for the week ending April 20th saw crude oil inventories increase by 2.2 million barrels. Markets traded mixed. On the one hand, interest rates continued to rise, and on the other, S&P 500 companies reporting earnings thus far have seen 81% beat analysts’ expectations.
On Thursday durable goods orders for March increased 2.6% on top of the prior month’s 3.5% gain and jobless claims for the week ending April 21st fell 24,000 to 209,000. Markets were up on strong earnings from major tech companies.
On Friday GDP for the first quarter came in at 2.3, higher than expectations, and the first quarter employment cost index was up .8%. Markets opened mixed, but turned lower after Exxon Mobile released disappointing earnings. Now let’s take a look at some stocks.
Alphabet Inc. (NASDAQ: GOOGL) announced on Monday, its first quarter financial results with operating margin down to 22% compared to 27% percent a year ago due to increased growth in expenses from self-driving cars, hardware and cloud computing service initiatives. The company’s shares fell below $1,015 post announcement.
Facebook, Inc. (NASDAQ: FB) reported financial results on Wednesday with daily active users at 1.45 billion on average for March 2018, an increase of 13% year-over-year. Mobile advertising revenue represented approximately 91% of advertising revenue for the first quarter, up from 85% a year ago. Facebook shares surged over 9% on Thursday.
AMD (NASDAQ: AMD) announced first quarter earnings results late Wednesday. Revenue was $1.65 billion, up 40% year-over-year and 23% quarter-over-quarter, driven primarily by higher revenue in the Computing and Graphics segment. Net income was $81 million compared to net losses of $33 million a year ago. AMD surged to over $11 per share on Thursday.
Chipotle Mexican Grill, Inc. (NYSE: CMG) reported first quarter financial results on Wednesday. Revenue increased 7.4% to $1.1 billion and net income increased to $59.4 million compared to $46.1 million a year ago.. The company opened 35 new restaurants and closed 2. Shares rose over $80 to a daytime high of $425.65 on Thursday.
Amazon.com, Inc. (NASDAQ: AMZN) released financial results for its first quarter on Thursday. Net sales increased 43% to $51 billion in the first quarter, compared to $35.7 billion a year ago. Operating income increased 92% to $1.9 billion in the first quarter, compared to $1.0 billion a year ago. Amazon shares surged late Thursday, to over $1600 post announcement.