On Monday the ISM manufacturing index for November fell .2 point to 48.1, lower than expected, while construction spending for October declined .8%. Manufacturing’s continued weakness disappointed investors, as well as President Trump’s tweet that he was restoring tariffs on steel and aluminum from Brazil and Argentina. Markets ended the day giving back some recent gains with the Dow Industrials falling 264 points.
On Tuesday, the pessimism continued after President Trump told reporters that he thinks waiting for a trade deal with China until after the election is worthwhile. Meanwhile President Trump also threatened additional tariffs on French goods as a response to a new digital tax on U.S. tech companies like Google. The yield on 10-year Treasuries fell 11 basis points to 1.71%. Markets fell with the Dow Industrials closing 280 points lower.
On Wednesday motor vehicle sales for November rose 3.6% to an annualized 17.1 million units, and the ADP employment report for November came in much weaker than expected at 67,000 jobs. The ISM non-manufacturing index for November was weaker than expected, losing .8 point to 53.9. Markets rose on reports that a phase-one trade deal agreement with China was close to finished, and President Trump said discussions with China were going well. The Dow Industrials finished 146 points higher.
On Thursday jobless claims for the week ending November 30th fell by 10,000 to 203,000 and factory orders for October rose .3% compared to the prior month’s .6% decline. Markets didn’t move much, even though jobless claims fell much more than expected.
On Friday nonfarm payrolls for November rose 266,000, much stronger than expectations, and the unemployment rate ticked down to 3.5%. Average hourly earnings rose .2%. Markets opened strongly higher on the news. Now let’s take a look at some stocks.
Slack Technologies, Inc. (NYSE: WORK) reported its third quarter results after the closing bell on Wednesday. The company topped analysts’ expectations for the quarter, but reported a weaker-than-expected guidance, sending shares lower by 4% on Thursday morning. Slack reported an earnings loss of $0.02 per share on revenue of almost $169 million, however analysts anticipated an earnings loss of $0.08 per share on revenue of $156 million.
RH (NYSE: RH), formerly known as Restoration Hardware, reported its third-quarter results on Wednesday coming in with earnings of $2.79 per share on revenue of $677 million, topping analysts’ expectations. The company also increased its fourth quarter and full-year guidance. RH shares soared by 10% on Thursday.
Ulta Beauty, Inc. (NASDAQ: ULTA) shares rose by 6% on Thursday after the company reported its third quarter results during extended trading hours, coming in with earnings of $2.25 per share on revenue of $1.68 billion. Analysts anticipated earnings of $2.14 per share on revenue of $1.69 billion. Despite the revenue miss, Ulta reported that revenue increased by 7.9% year-over-year.
Cloudera, Inc. (NYSE: CLDR) reported its third quarter results after the market close on Thursday, coming in with an earnings loss of $0.03 per share on revenue of $198 million, surpassing analysts’ expectations by reporting a narrower loss than expected, sending shares 8% higher.
Zoom Video Communications, Inc. (NASDAQ: ZM) on Thursday released its third quarter results coming in with earnings of $0.09 per share on revenue of $166 million, solidly beating analysts’ estimates. The company also issued a stronger guidance for the fourth quarter. Nevertheless, shares dropped 11% after the news.