July 12, 2019 Weekly Wrap up LIVE from the floor of the NYSE

On Monday, markets paused to wait to see what Fed Chair Jerome Powell would say later in the week during his scheduled testimony.  Tech trended down after an analyst downgraded Apple, and the Dow Industrials closed 115 points lower. 

On Tuesday the JOLTS job openings report for July declined .7% to 7.323 million openings, lower than expected.  Ten-year Treasuries yielded 2.05%, West Texas Intermediate crude ended at $57.50 a barrel and gold finished at $1,394 an ounce. 

On Wednesday the EIA petroleum status report for the week ending July 5th saw crude oil inventory decline 9.5 million barrels. Fed Chair Powell testified before Congress and noted that business investment has slowed recently, and uncertainties around trade tensions and the strength of the global economic have increased risk to the U.S. economy.  Markets interpreted this as some form of loosening will happen soon and markets shot up with the Dow Industrials closing 76 points higher and the Nasdaq Composite closing at a record high. 

On Thursday the consumer price index for June rose .1% on top of the prior month’s .1% gain.  Jobless claims for the week ending July 6th fell 13,000 to 209,000.  Markets continued rallying, especially in the health care sector, with the Dow Industrials rising 227 points to close above 27,000 for the first time. 

On Friday the producer price index for June saw a modest .1% rise and markets rose slightly at the open.  Now let’s take a look at some stocks.

PepsiCo, Inc. (NASDAQ: PEP) reported its second quarter results before the market open on Tuesday. The beverage producer topped analysts’ expectations and provided an upbeat forecast for the rest of the fiscal year, sending shares roughly 1% higher during Tuesday’s pre-market hours. Pepsico reported earnings of $1.54 per share on revenue of $16.4 billion.  The stronger-than-expected quarter was primarily driven by the Company’s coffee drinks and water business segments.

Acacia Communication, Inc. (NASDAQ: ACIA) announced on Tuesday morning that Cisco Systems, Inc. (NASDAQ: CSCO) intends to acquire Acacia for $2.6 billion or $70 per share. The announcement sent Acacia shares surging by as much as 35% on Tuesday.  Upon completion of the deal, Acacia employees will join Cisco’s Optical Systems and Optics business within the networking and security business.

Levi Strauss & Co. (NYSE: LEVI) reported its second quarter results after market close on Tuesday. The jean-maker reported better-than-expected revenue, but missed earnings estimates, causing shares to plummet 10% at the opening bell on Wednesday.  The company reported earnings of $0.07 per share on revenue of $1.3 billion.  Revenue rose by 5% year-over-year due to stronger sales growth in Levi’s Asia and Europe markets.

Bed Bath & Beyond Inc. (NASDAQ: BBBY) released its first quarter results after the market close on Wednesday, with the company reporting earnings of $0.12 per share on revenue of $2.6 billion. Bed Bath & Beyond reached the high-end of its earnings guidance range, while revenue was slightly below expectations. Shares traded about 3% higher on the news.

Delta Air Lines, Inc. (NYSE: DAL) reported its second quarter results before the market open on Thursday, taking in a record $12.5 billion, up 8.7% year-on-year, and earning $1.5 billion in income, or $2.35 per share.  Delta also returned $497 million to shareholders in Q2, in dividends and stock buybacks.  Delta shares a new 6 month high of $60.79 on Thursday.

6 Comments
  1. Bruce Tennen 2 weeks ago
    Reply

    Mean reversion trade in $LEVI isn’t working out… early days yet, but what a turd.

    • Ross Gerber 1 week ago
      Reply

      Using my $LEVI earnings to buy some new Wranglers. Next go around…an AR-15!

  2. Nico Padron 1 week ago
    Reply

    $bbby new lows coming

    • Nathan Michaud 6 days ago
      Reply

      Maybe the $10 flush on $BBBY by EOD?

  3. Will Harris 1 week ago
    Reply

    $PEP flagging. Looking for MACD crossover.

  4. Dillon Harper 1 week ago
    Reply

    $DAL broke out…not much>today’s high. May chase….setup weakens<59.94

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