On Monday the ISM manufacturing index for January rose 3.1 to 50.9 while construction spending for December declined .2% compared to the prior month’s .7% gain. Markets rebounded, despite the continued spread of the coronavirus in China, although copper and oil continued to fall. The Dow Industrials closed 143 points higher.
On Tuesday motor vehicle sales for January rose 1.2% to 16.8 million units and factory orders for December rose 1.8%. Markets soared as the Chinese government added massive liquidity to its economy and might also cut interest rates and banks’ reserve requirements. Investors took the position that the coronavirus will not cause a recession in the U.S. The Dow Industrials gained 407 points and the Nasdaq Composite advanced 2.1% to a record close.
On Wednesday the ADP employment report for January forecast an increase of 291,000 private sector jobs and the ISM non-manufacturing index for January increased .5 to 55.5. The EIA petroleum status report for the week ending January 31st saw crude oil inventory increase by 3.4 million barrels. Markets continued soaring with the Dow Industrials gaining 483 points and the S&P 500 and Nasdaq Composite closing at record highs. U.S. crude gained 2.9% to $51.04 a barrel and 10-year Treasuries yielded 1.65%.
On Thursday jobless claims for the week ending February 1st declined 15,000 to 202,000 and fourth quarter nonfarm productivity increased 1.4% while unit labor costs also increased 1.4%. All three major indexes advanced and closed at record highs as China said it would cut in half tariffs on $75 billion worth of U.S. imports.
On Friday nonfarm payrolls for January increased 225,000, stronger than expected, and the unemployment rate ticked up to 3.6%. Average hourly earnings increased .2%. In an odd reaction to the good news, markets fell at the open as concerns over the impact of the coronavirus on China’s economy resurfaced. Now let’s take a look at some stocks.
Alphabet Inc. (NASDAQ: GOOGL) reported on Monday, its quarterly and full year results coming in with earnings of $15.35 per share on revenue of over $46 billion. The company also expended its revenue disclosure with YouTube pulling in $15.1 billion in annual ad revenue, and Google Cloud pulling in $8.9 billion annually. The Alphabet shares fell to under $1,425 on Tuesday, post announcement.
Snap Inc. (NYSE: SNAP) reported on Tuesday, its fourth quarter and full year results, with daily active users of 218 million, increasing by 17% from the same period last year. Fourth quarter revenue increased 44% year-over-year to $561 million, and the company gave a higher than expected outlook for the first-quarter of 2020.
Irobot Corp. (NASDAQ: IRBT) reported its fourth quarter and full-year results on Wednesday. Revenue for the fourth quarter increased 11% to $427 million, compared to $385 million a year ago. Full year revenue amounted to $1.2 billion, an 11% increase from a year ago.
Twitter, Inc. (NYSE: TWTR) reported its fourth quarter and full year results with revenue of almost $3.5 billion, a 14% increase year over year. For the fourth quarter, revenue totaled $1 billion, an 11% increase year over year. Advertising revenue amounted to $885 million, a 12% rise year over year.
Uber Technologies, Inc. (NYSE: UBER) announced fourth quarter and full year financial results with quarterly revenues growing 37% year over year to $4.1 billion while gross bookings grew $4 billion year over year to $18.1 billion. Uber’s shares rose over 4% during after-hours on Thursday.