Monday was Presidents Day holiday and markets were closed. On Tuesday the Empire State manufacturing survey for February rose 8.1 points to 12.9 and the housing market index for February declined 1 point to 74. The reality of the coronavirus hit hard when Apple warned it doesn’t expect to meet its quarterly revenue estimates, due to production slowdowns as well as weak demand in China. Markets mostly trended lower on the news.
On Wednesday housing starts for January fell 3.6% to an annualized 1.567 million units and the producer price index for January rose .5%, much higher than expected. Markets shot up as China continued to increase economic support to local businesses that are struggling due to the coronavirus. Minutes from the most recent Fed meeting showed that the Fed is comfortable with leaving rates unchanged and may even support overshooting the 2% inflation target slightly as insurance in case of unexpected global shocks. The Dow Industrials closed up 115 points and the S&P 500 and Nasdaq Composite closed at record highs.
On Thursday jobless claims for the week ending February 15th rose 4,000 to 210,000 and the EIA petroleum status report for the week ending February 14th saw crude oil inventories rise 400,000 barrels. Investors remained concerned that China’s factories and economy could take longer than expected to rebound from the effects of the coronavirus as well as other reports surfacing showing that the virus is still spreading within China and other Asian countries. The Dow Industrials closed down 128 points and 10-year Treasuries yielded 1.52%.
On Friday the PMI composite flash for February fell 3.5 points and existing home sales for January fell 1.2% to an annualized 5.46 million units. Markets opened sharply lower as coronavirus cases escalated. Now let’s take a look at some stocks.
Zillow Group, Inc. (NASDAQ: Z) announced fourth quarter and full year results on Wednesday, reporting quarterly revenue that grew by 158% due to rapid expansion in its Homes segment. Traffic to Zillow’s mobile apps and websites amounted to nearly 173 million average monthly users for the three months ending December 31st. Shares of Zillow Group rose over 16% post announcement on Thursday.
Stamps.com (NASDAQ: STMP) reported on Wednesday results for its fourth quarter and full year, coming in with total quarterly revenue of $161 million and full-year revenue of $562 million. In the fourth quarter, Stamps repurchased 76,000 shares at a cost of $6 million. Shares of the company rose over 65% on Thursday.
Domino’s Pizza, Inc. (NYSE: DPZ) announced on Thursday, fourth quarter and full-year results. The company reported global retail sales growth of 7.6% in the fourth quarter and 8% for the full year. Diluted earnings per share reached $3.12 in the fourth quarter and $9.56 for the full year. Shares of Domino’s surged over 25% on Thursday, post announcement.
Wix.com Ltd. (NASDAQ: WIX) announced on Thursday morning its fourth quarter and full-year results with fourth quarter revenue coming in at almost $205 million, up 25% year over year and full year revenue coming in at $761 million, up 26% year over year. Shares of Wix fell to under $140 post announcement.
Dropbox, Inc. (NASDAQ: DBX) reported fourth quarter and fiscal 2019 results on Thursday, coming in with fourth quarter revenue of $446 million, a 19% rise year over year while fiscal 2019 revenue amounted to $1.67 billion. The company’s board of directors authorized the company to repurchase $600 million of its Class A shares. Shares of Dropbox rose over 10% after-hours on Thursday, post announcement.