On Monday, investors remained enthusiastic as tensions with Iran eased and the U.S. and China were set to sign a trade agreement. Markets continued climbing with the S&P 500 and Nasdaq Composite finishing at record highs.
On Tuesday the NFIB small business optimism index for December fell 2 points to 102.7 and the Consumer Price Index for December rose a tame .2% as investors waited for the start of earnings season. Markets ended the day mixed.
On Wednesday the producer price index for December rose .1%, the Empire State manufacturing survey for January rose 1.3 points to 4.8 and the EIA petroleum status report for the week ending January 10th saw crude oil inventory decline 2.5 million barrels. The U.S.-China trade deal was signed and the Dow Industrials gained 90 points to close above 29,000 for the first time.
On Thursday jobless claims for the week ending January 11th fell 10,000 to 204,000, lower than expected, and retail sales for December rose .3%, meeting expectations. Import prices for December rose .3% while export prices declined .2% and the housing market index for January fell one point to 75. The good economic news plus some good corporate earnings boosted investors’ confidence and the all three major indexes closed at record highs.
On Friday housing starts for December jumped 16.9% to an annualized 1.608 million units, much stronger than expected, and industrial production for December declined .3%. Markets opened modestly higher on the news. Now let’s take a look at some stocks.
TerraForm Power, Inc. (NASDAQ: TERP) confirmed that Brookfield Renewable Partners L.P. wants to acquire its remaining Class A common stock. Brookfield currently owns 62% of TerraForm’s shares. Shares of TerraForm Power increased to over $17 on Monday post announcement.
Lululemon Athletica Inc. (NASDAQ: LULU) announced on Monday, an update on its net revenue and earnings guidance for the fourth quarter. The company now anticipates net revenue to be almost $1.38 billion, slightly higher than its previous guidance. Shares of Lululemon rose to over $244 post announcement.
Citigroup Inc. (NYSE: C) reported fourth quarter results on Tuesday with net income reaching $5 billion or $2.15 per diluted share on revenues of $18.4 billion. The company returned $6.2 billion worth of capital to shareholders via a 69 million share buyback.
Target Corporation (NYSE: TGT) announced its holiday sales on Wednesday, noting that comparable sales grew 1.4% in the holiday period on top of last year’s 5.7% growth for the same period. However, sales were below expectations and the company maintained its previous guidance for fourth quarter earnings per share. Target fell over 7% post announcement.
Morgan Stanley (NYSE: MS) reported its fourth quarter results on Thursday morning, coming in with net income of $2.2 billion, or $1.30 per diluted share on revenue of $10.9 billion. For the same period a year ago, net income was $1.5 billion and revenue was $8.5 billion. Morgan’s shares rose over 6% on Thursday on heavy volume.