April 5, 2019 Weekly Wrap up LIVE from the floor of the NYSE

On Monday retail sales for February fell .2% compared to the prior month’s .7% gain.   The PMI manufacturing index for March fell .6 point to 52.4 and the ISM manufacturing index for March rose 1.1 points to 55.3.  Construction spending for February rose 1%.  Markets rose sharply on the strong manufacturing data released both here and in China with the Dow Industrials finishing 329 points higher. 

On Tuesday durable goods orders for February declined 1.6%, compared to the prior month’s .1% gain.  Markets lost ground after some disappointing earnings from Walgreens. 

On Wednesday the ADP employment report for March saw gains of 129,000, while the ISM non-manufacturing index for March fell 3.6 points to 56.1.  The EIA petroleum status report for the week ending March 29th saw crude oil inventory increase 7.2 million barrels.   Markets rose slightly on reports that U.S.-China trade talks have made progress and most major conflicts have been resolved. 

On Thursday jobless claims for the week ending March 30th fell 10,000 to 202,000, lower than expected.  Stocks continued to rise, the dollar gained strength, and 10-year Treasuries yielded 2.52%. 

On Friday nonfarm payrolls for March rebounded after a dismal February coming in at 196,000, higher than expectations, unemployment remained the same at 3.8% and average hourly earnings rose a tame .1%.  Markets opened higher on the news.  Now let’s take a look at some stocks.

Walgreens Boots Alliance, Inc. (NASDAQ: WBA) reported its second quarter financial results on Tuesday before market open. Walgreens missed analysts’ estimates, sending shares 10% lower. The company reported earnings of $1.64 per share on revenue of $34.5 billion, 8 cents per share lower than expectations.  In addition, same-store sales dropped by 3.8% in the U.S.  Walgreens now expects its 2019 earnings to be roughly flat, compared to its previous growth of 7-12%.

GameStop Corp. (NYSE: GME) reported its fourth quarter financial results after the market close on Tuesday, with shares plummeting over 12% after missing estimates.  Additionally, GameStop said it would not provide any annual earnings guidance. The company earned $1.45 per share on revenue of $3.1 billion, with earnings falling short of expectations by 13 cents per share.  GameStop saw its total global sales fall by 7.6% year-over-year, however, comparable store sales rose by 1.4%.  For fiscal 2019, GameStop is expecting total sales to decline between 5-10%.

Delta Air Lines (NYSE: DAL) shares rose by 7% on Tuesday after the airline renewed its partnership with American Express (NYSE: AXP) for its Delta SkyMiles credit card. The partnership will continue until the end of 2029, and is expected to be contribute an additional $7 billion of revenue to Delta by 2023.  Delta reported that in 2018 it added 1 million new cardholders, while card spending increased by double digits.

Tesla, Inc. (NASDAQ: TSLA) shares plunged by 10% on Wednesday after the electric vehicle manufacturer reported disappointing delivery numbers. Tesla announced that it delivered 63,000 vehicles in the quarter, which is a 110% increase year-over-year, but a 31% decline sequentially. Analysts had expected Tesla to deliver 76,000 vehicles in the quarter.

Office Depot, Inc. (NASDAQ: ODP) issued a warning for its preliminary financial results for its first quarter. The disappointing guidance sent shares tumbling over 23% on Thursday. The office and school supply retailer expects revenue of approximately $2.8 billion and adjusted operating income of $65 million. Office Depot said the lower than expected operating performance is due to its CompuCom division experiencing lower than expected revenue from its existing customers.

7 Comments
  1. Veronica M. 5 months ago
    Reply

    Will #Tesla be able to generate #demand after slowing Q1 deliveries? Managing Director, Daniel Ives believes the company could rebound from increased demand during the second half of 2019 in the U.S. and Europe. $TSLA

    • Ray Lopez 5 months ago
      Reply

      Traded poorly today and was quite rusty, broke my ‘2 consecutive losses max’ rule. Still a small red day though because entries were good and stops were tight. As long as you have proper risk you can still trade like shit and not get burned too bad $TSLA $SPY $AMD

    • Mark Chaudhry 5 months ago
      Reply

      $TSLA $200 coming. Remember that as long as Musk is behind the wheel of the company that the stock volatility will always be sporadic

      • Nick Kovacevich 5 months ago
        Reply

        Elon has been Super busy with customer service complaints. But Elon has not been been Super busy with returning requested deposits from unfulfilled Model 3 orders $tsla $tslaq

    • Wyatt Stovall 4 months ago
      Reply

      IMO, monthly subscription offers best of both worlds for $TSLA as a recurrent revenue and customer as a cheaper initial entry point

  2. Walt Newman 5 months ago
    Reply

    $ODP – I woukld be stopping at at 2.73 , I broke my rule of trying to play a bounce of a downward spiral, im sure with time it would have worked but im done.

  3. Elsie Amper 5 months ago
    Reply

    Cutting costs will go a long way in helping boost $WBA’s bottom & top line but stiff competition for market share from the likes of $AMZN & $WMT will continue weighing on $WBA.Diversifying the company’s portfolio, offering products containing CBD will also help

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