February 8, 2019 Weekly Wrap up LIVE from the floor of the NYSE

On Monday motor vehicle sales for January slowed 5.1% to an annualized 16.6 million units and factory orders for November fell .6%, largely due to the drop in the price of oil.  Markets rose on the strength of tech, as investors optimistically waited for more earnings reports. 

On Tuesday the ISM non-manufacturing index for January fell 1.3 points to 56.7.  Nearly half of S&P 500 companies reported earnings with about 70% beating analysts’ expectations.  Once again, tech led the market to solid gains with the Dow Industrials closing 172 points higher. 

On Wednesday nonfarm productivity for the fourth quarter came in at 1.3%, however, due to the prior government shutdown, this number only represented the manufacturing sector. 

The EIA petroleum status report for the week ending February 1st saw crude oil inventory increase by 1.3 million barrels.  Treasury Secretary Steven Mnuchin said that talks with China were very productive, however, markets took a breather and snapped a five day winning streak. 

On Thursday jobless claims for the week ending February 2nd fell 19,000 to 234,000, as claims from Federal employees dropped.  Investors were nervous that a trade deal with China won’t be reached before the March deadline and that the European Commission reduced its growth projection for the euro zone this year to 1.3%.  Markets, fearing a global slowdown, ended the day down sharply. 

On Friday markets opened sharply lower on continued trade worries and fear of a slowdown in earnings. Now let’s take a look at some stocks.

Alphabet Inc. (NASDAQ: GOOG), Google’s parent company, reported its fourth quarter financial results after market close on Monday. The tech giant topped estimates, however, shares declined due to lower advertising prices and increased expenses, causing shares to fall by 3%. Alphabet reported earnings of $12.77 per share on revenue of $39.3 billion. Total advertising revenue rose to $32.6 billion and capital expenditures increased to almost $6.9 billion.

Snap Inc. (NYSE: SNAP) reported its fourth quarter financial results after market close on Tuesday and surpassed analysts’ estimates, sending shares 25% higher at the opening bell on Wednesday. Snap reported an adjusted earnings loss of 4 cents per share on revenue of $390 million.  The company also reported 186 million daily active users, falling by 1 million from a year ago.

Chipotle Mexican Grill, Inc. (NYSE: CMG) reported its fourth quarter financial results after market close on Wednesday. The fast-food chain crushed estimates in sales and earnings, sending shares soaring over 13% at the open on Thursday. Chipotle reported earnings of $1.72 per share on revenue of $1.2 billion and saw its same-store sales grow to 6.1%.  The company’s push for digitized transactions led digital sales to rise by almost 66%.

Twitter, Inc. (NYSE: TWTR) reported its fourth quarter financial results on Thursday morning. The company beat expectations, but provided weaker-than-expected guidance, sending shares tumbling 10%. For the fourth quarter, Twitter reported earnings of 31 cents per share on revenue of $909 Million.   The social media giant reported average monthly users of 321 million, which fell compared to 330 million a year ago.  Average monetizable daily active users were 126 million for the quarter compared to 115 million year-over-year.

Grubhub Inc. (NYSE: GRUB) reported its fourth quarter financial results on Thursday before market open and missed its quarterly estimates, causing shares to plunge by 19%. For the fourth quarter, Grubhub reported earnings of 19 cents per share on revenue of $288 million.  The dining delivery service saw its active diners increase by 22% to 17.7 million. Daily average grubs, which are the number of orders placed, increased by 19% to 467,500.

10 Comments
  1. Jack Mattern 5 months ago
    Reply

    The use of “Adjusted” or non GAAP earnings of highly priced companies like; $CMG, $HUBS, $TWLO, $W reminds me of late 90’s/early 2000’s valuations; Worldcom & Enron’s Kenny boy’s “fuzzy math” took it up to accounting fraud which led to the hyped & toothless Sarbanes-Oxley.

  2. Sheldon Chang 5 months ago
    Reply

    $GRUB very nice action. I’ve been slowly realizing that OTM options are a sham. Their movement is so inconsistent. I might stop staggering the strikes on calls and just go ITM every time to get more consistent action. My OTM should be 3x what they are. Market makers 🙁

    • David Lynn M. 5 months ago
      Reply

      Aside from reported 4Q 22% order growth vs. 21% gain prior quarter, Adjusted seqential DAG growth actually upticked a more impressive 250-300 basis points in 4th quarter. $grub

  3. Viktor F. 5 months ago
    Reply

    Feb 6 $SNAP released 10-K, though still spending more money to generate smaller revenue, Wall street giving them nudge to 1st target $10, then final target $10.50, reason being from ’17 to ’18 their revenue increasing, & total costs are decreasing. Patents not solid, buyout shaky

    • Gary Luck 5 months ago
      Reply

      How quickly $SNAP dips get bought. Strength is there. Strong pop is coming soon. Waiting on it.

  4. Michael Corleone 5 months ago
    Reply

    : $GOOGL bearish inverted hammer forming. MACD crossing bearish, Stochs magenta support failing never a good sign. If yellow support fails here, Longs GTFO. Wait for of firmaitin signal, next 48 hrs key for FANGS

  5. Tyler Jenks 5 months ago
    Reply

    I went long when $CMG reclaimedthe 50 sma a 2nd time, sold @ doubletop, then pivoted to a short. Only 100 shares though. Good luck.

    • Henry Bowmen 5 months ago
      Reply

      They still trying to pump $CMG up …. 601+ is simply not a sustainable level. Get it higher, I’ll lay on a new short

  6. Oscar R. 5 months ago
    Reply

    $TWTR has only 27mm DAU in North America, vs. SNAP’s 79mm. A huge difference, there’re far less news junkies than you think.

    • Wilbert BRown 5 months ago
      Reply

      $FB buying $Twtr would be huge for investors of both companies, mega-growth…

Leave a Comment