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.