On Monday the ISM non-manufacturing index for July fell 1.4 points to 53.7, below expectations and a 3 year low. Last week, President Trump authorized new tariffs on Chinese goods and on Monday China fought back by allowing its currency, the yuan, to fall, breaking above 7 per U.S. dollar. China also suspended the purchase of U.S. agricultural products. On the news, investors massively sold stocks and bought bonds, with the Dow Industrials plunging 767 points and the yield on 10 year Treasuries falling to 1.74%,
On Tuesday the JOLTS job opening report for June saw a .5% decline to 7.348 million openings. China’s central bank set the yuan’s official reference point a little below 6.97 per dollar, soothing fears that a currency war was erupting. Markets rebounded with the Dow Industrials closing up 311 points.
On Wednesday the EIA petroleum status report for the week ending August 2nd saw crude oil inventory rise 2.4 million barrels. The Dow Industrials fell as much as 589 points, but rebounded to close only 22 points lower after interest rates stabilized. Ten year Treasuries yielded 1.71% and gold jumped more than 2% to $1,508 per ounce.
On Thursday jobless claims for the week ending August 3rd fell 8,000 to 209,000. China’s central bank appeared to support the stability of the yuan and China’s exports climbed an unexpectedly strong 3.3% in July from a year earlier. This alleviated investors’ concerns and the Dow Industrials gained 371 points.
On Friday the producer price index for July rose .2% and President Trump told reporters that the U.S. holds all the cards in the trade dispute with China, and the U.S. will not do business with Huawei. Shortly after markets opened, the Dow Industrials dropped over 200 points over trade worries. Now let’s take a look at some stocks.
Take-Two Interactive Software, Inc. (NASDAQ: TTWO) released its first quarter results after market close on Monday, coming in with earnings of $.41 per share on revenues of $540.5 million. The game developer saw its revenue grow 39% and its net bookings grow 46%, stronger than expected, sending shares surging by over 11% at Tuesday’s open.
The Walt Disney Company (NYSE: DIS) reported its third quarter results after the closing bell on Tuesday. Disney missed analysts’ estimates for both revenues and earnings, causing shares to fall by 5% during Wednesday’s pre-market hours. Disney reported earnings of $1.35 per share on revenues of $20.25 billion and stated its underperformance was due to efforts to integrate 21st Century Fox assets. Disney also announced it expects Disney+ to launch in November at a cost of $7.99 per month and will feature services such as Disney, Pixar, Marvel and Star Wars.
Roku, Inc. (NASDAQ: ROKU) reported its second quarter results after market close on Wednesday, coming in with an earnings loss of $.08 per share on revenue of $250 million. The streaming service provider exceeded expectations and provided an upbeat guidance, sending shares soaring by over 20% on Thursday morning. Revenue surged 59% year-over-year and average revenue per user increased $2.00 to $21.06 from the previous quarter, while streaming hours rose 72% year-over-year.
The Trade Desk, Inc. (NASDAQ: TTD) reported its second quarter financial results during extended trading hours on Thursday, earning $.95 per share on revenue of $159.9 million. Despite beating estimates, shares slipped by 5% after reporting. The Company stated its revenue grew 42% year-over-year, mobile video spending grew by 50% year-over-year, while mobile-in app use grew by 63%. Trade desk also raised their third quarter and full-year guidance.
Uber Technologies, Inc. (NYSE: UBER) reported its second quarter results after market close on Thursday coming in with an earnings loss of $4.72 per share on revenue of almost $3.2 billion. Gross bookings rose by 31% and monthly active platform consumers jumped by 30% to 99 million, while number of trips increased 35% year-over-year. Shares plunged 12% because the earnings loss was larger than expected.