On Monday durable goods orders for July increased 2.1% on top of the prior month’s 1.8% gain. President Trump said representatives from China called wanting to get back to the negotiating table for trade issues and this gave investors a sense of optimism. Markets rallied with the Dow Industrials closing 269 points higher.
On Tuesday the Case-Shiller home price index for June remained unchanged, and consumer confidence for August dropped 7/10ths of a point to 135.1. Markets fell as China denied reaching out for new talks and the spread between 10 and 2 year Treasuries fell to a negative 5 basis points, its greatest inversion since 2007.
On Wednesday the EIA petroleum status report for the week ending August 23rd saw crude oil inventory plummet 10 million barrels, although still 5.4% higher than its level a year ago this time period. The energy sector rallied on the news and broader markets followed, however, trading volume was lower than average as traders took time off for the upcoming Memorial Day holiday.
On Thursday the second estimate of the 2nd quarter GDP was downgraded slightly to 2%, while consumer spending was upgraded to 4.7%. Jobless claims for the week ending August 24th increased 4,000 to 215,000 and the pending home sales index for July declined 2.5%. China hinted that it will not retaliate against the latest round of U.S. tariffs and markets took off with the Dow Industrials finishing 326 points higher.
On Friday personal income for July rose .1% while consumer spending rose .6%. The PCE price index rose .2%. At the open, markets rose on trade optimism when China’s Foreign Ministry said that U.S. and China negotiators are communicating. Now let’s take a look at some stocks.
Nutanix, Inc. (NASDAQ: NTNX) shares soared by as much as 28% after the company reported better-than-expected financial results. For the fourth quarter, Nutanix lost $0.57 per share on revenue of almost $300 million. For the same period a year ago Nutanix lost $0.11 per share and revenue was slightly higher.
Best Buy Co., Inc. (NYSE: BBY) reported its second quarter results before the market open on Thursday, coming in with earnings of $1.08 per share on revenue of $9.5 billion. The company provided mixed results and a weaker-than-expected guidance, sending shares lower by 5.4% during pre-market trading hours. The increase in domestic revenue was driven by 1.9% growth in comparable sales ad revenue from Best Buy’s GreatCall acquisition in the third quarter of fiscal 2019.
Dollar General Corporation (NYSE: DG) reported its second quarter results during pre-market hours on Thursday, with earnings of $1.74 per share on revenue of $7 billion. This was better-than-expected sending shares surging over 7% at the opening bell. Same-store sales increased by 4.0% due to increases in both the average transaction amount and customer traffic.
Abercrombie & Fitch Co. (NYSE: ANF) reported its second quarter results before the opening bell on Thursday losing $.48 per share on revenue of $841 million. Revenue declined .2% compared to a year ago, while comparable sales growth remained flat. The company warned that Chinese tariffs would lower its gross profit in future reporting periods. Abercrombie shares tumbled 15% on the news.
Ulta Beauty, Inc. (NASDAQ: ULTA) reported its second quarter results after the closing bell on Thursday. The beauty retailer missed estimates after coming in with earnings of $2.76 per share on revenue of almost $1.7 billion. Comparable sales for the quarter increased 6.2% compared to a year ago. Due to anticipated industry-wide sales headwinds in cosmetics, Ulta lowered its guidance for earnings and revenue for the remainder of the fiscal year. Shares plummeted 21% during after hours trading.