August 23, 2019 Weekly Wrap up LIVE from the floor of the NYSE

On Monday the U.S. announced it would delay implementing restrictions on Huawei Technologies and investors also were encouraged by China and Germany implementing tools to ease monetary policy.  The Dow Industrials closed 249 points higher. 

On Tuesday President Trump said he wasn’t ready to make a deal with China and reports surfaced that Trump was discussing cutting payroll taxes as a way to increase economic growth.  The Volcker Rule, designed to prevent banks from making risky investments, was eased, a change long desired by the financial industry.  Markets fell with the Dow Industrials losing 173 points and the yield on 10-year Treasuries fell to 1.55%. 

On Wednesday existing home sales for July rose 2.5% to an annualized 5.42 million units and the EIA petroleum status report for the week ending August 16th saw crude oil inventory decline 2.7 million barrels.  The Federal Reserve released minutes from its last meeting emphasizing that the rate cut was only a midcycle adjustment, as well as an insurance policy against global uncertainty.  Markets rallied on strong earnings from retailers Target and Lowe’s and the Dow Industrials closed 240 points higher. 

On Thursday jobless claims for the week ending August 17th fell 12,000 to 209,000.  The PMI flash for August revealed that the manufacturing component had declined to 49.9, indicating contraction in the sector.  It was the lowest reading since 2009.  Markets seesawed on the news and ended the day mixed. 

On Friday China announced it will impose tariffs of up to 10% on an additional $75 billion worth of goods from the U.S. Also, Fed Chair Jerome Powell gave a much awaited speech in Jackson Hole Wyoming, and he continued to affirm he will act as appropriate to sustain the expansion.  Markets opened sharply lower, but then rebounded, then dropped dramatically after President Trump issued a Tweet saying he’s ordering American companies to find alternatives to China.  Now let’s take a look at some stocks.

The Home Depot, Inc. (NYSE: HD) reported its second quarter results before the opening bell on Tuesday. The home-goods retailer provided better-than-expected earnings, but missed analysts’ revenue estimates, coming in with earnings of $3.17 per share on revenue of $30.8 billion.  The company said its strategic investments are doing well and believes the health of the U.S. consumer is growing.  Home Depot shares gained 3.7% shortly after the market open.

Lowe’s Companies, Inc. (NYSE: LOW) reported its second quarter results during pre-market hours on Wednesday. The home improvement retailer topped analysts’ estimates, sending shares 10% higher. Lowe’s reported earnings of $2.15 per share on revenue of almost $21 billion, with comparable sales increasing 2.3%, beating estimates of 1.9%.

Target Corporation (NYSE: TGT) reported its second quarter results on Wednesday, coming in with earnings of $1.82 per share on revenue of $18.4 billion.  Comparable sales grew by 3.4% driven primarily by 2.4% traffic growth during the quarter.  Results were better-than-expected and provided an upbeat guidance sending share surging by over 17% to over $100 per share.

Nordstrom, Inc. (NYSE: JWN) reported its second quarter results on Wednesday earning $0.90 per share on revenue of $3.9 billion.  Digital sales grew by 4% accounting for 30% of the business, while full-price revenue decreased 6.5% compared to the same period a year ago.  The company also lowered its earning guidance for the full year.

BJ’s Wholesale Club Holdings, Inc. (NYSE: BJ) reported its second quarter results on Thursday. The wholesale retailer reported better-than-expected results and affirmed its guidance, sending shares soaring by over 14%. For the second quarter, BJ’s reported earnings of $0.39 per share on revenue of $3.35 billion. Comparable store sales for the quarter increased by 1.6%.

7 Comments
  1. Robert Hamilton 2 months ago
    Reply

    Closed $JWN 29.1 for 1400 buckets. Have a good weekend.

    • Nathan Michaud 2 months ago
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      $JWN in Downtrend: 50-day Moving Average moved below 200-day Moving Average

  2. Zachary Prensky 2 months ago
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    $HD sold yesterday at high (after holding couple years being a good boy!), too sanguine, never know what trump and xi are doing each moment. but, div date early sept,,,tempting to get back in if there is a dip. #prayforadip

    • Melanie Lui 2 months ago
      Reply

      The workers in the parking lot at $HD even want a big beautiful wall…

  3. Charlie Bilello 2 months ago
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    $LOW Once again, Pro comps significantly outpaced DIY during the quarter. And our strong Pro performance was particularly driven by investments in job-lot quantities coupled with our improved service model.

  4. Jason Winguard 2 months ago
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    $tgt $wmt $hd $low retail is crushing it and guiding for more $cost likely reports blow out quarter. 300+ soon

  5. Vanessa Louie 2 months ago
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    $TGT Open a call credit spread 100/105 expiring this week. Took also a small put spread 105/100. Super small. Will add if need be…

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