Monday December 5, 2016 – Friday December 9, 2016
On Monday, the ISM non-manufacturing index was released for November, jumping 2.4 points to 57.2, higher than expectations. A referendum in Italy that would restructure the government and help push economic reforms was rejected, leading to the resignation of Prime Minister Matteo Renzi, however, U.S. markets didn’t react much.
On Tuesday nonfarm productivity for the third quarter jumped 3.1% on top of the prior quarter’s 3.1% gain, and unit labor costs increased .7% on top of the prior quarter’s .3% gain. Factory orders for October increased 2.7%, up from the prior month’s .3% gain. The Dow Industrials gained 35 points to close at a record high.
On Wednesday, the JOLTS job openings report slipped 1.7% to 5.534 million in October and the EIA petroleum status report for the week ending December 2nd showed crude oil inventories dropping 2.4 million barrels. The Dow Industrials gained 297 points to close at a record high, and the S&P 500 gained 29 points to also close at a record.
On Thursday, jobless claims for the week ending December 3rd fell 10,000 to 258,000. U.S. crude rose over 2% to close at $50.84 per barrel after China’s November imports were much stronger than expected and U.S. Treasury 10 year notes yielded 2.39%. The Dow Industrials, S&P 500 and NASDAQ composite all closed at record highs.
On Friday consumer sentiment hit 98, its highest level since January of 2015. Market opened modestly higher. Now let’s take a look at some stocks.
Chipotle Mexican Grill, Inc. (NYSE:CMG) plunged more than 7% percent after the company expressed concerns about hitting its guidance. The company is still trying to recover from a wide-spread E. coli outbreak, but efforts are hampered by the company’s increased priority of cleanliness and safety over speed.
Barnes & Noble Education, Inc. (NYSE:BNED) posted worse-than-expected sales and earnings for its fiscal second quarter, causing shares to drop more than 16%. The college bookstore operator reported profits of $29 million, or 63 cents a share, compared with $33 million, or 69 cents a share, a year ago. Analysts had projected adjusted earnings of 78 cents per share.
Britain’s antitrust regulator fined Pfizer, Inc. (NYSE:PFE) $107 million for overcharging as much as 2600% on an epilepsy drug. The Competition and Markets Authority alleged that Pfizer and Flynn Pharma Ltd., a drug distribution firm, charged unfair prices in the U.K. for phenytoin sodium, a drug used by thousands of patients. Shares of Pfizer dropped over 2.5% on Wednesday after the announcement.
Sprint Corporation (NYSE:S) announced a wireless partnership with Niantic, developer and publisher of Pokemon Go. The two companies will collaborate to create a special Pokemon Go experience in over 10,500 Sprint locations starting December 12th. Users of the Pokemon Go mobile app can visit select locations and collect Pokeballs and eggs to further advance in the game. Shares of Sprint soared over 7% on the news.
Lululemon Athletica Inc. (NASDAQ:LULU) reported earnings after hours on Wednesday that topped analyst estimates and showed signs of strength as the company heads into the holiday season. The company’s shares surged over 15% as the yoga-wear producer reported a profit of 47 cents a share that beat estimates of 43 cents. Sales projections also beat expectations, with same-store sales rising 7%, compared to estimates of 5.4%.