Monday, July 11, 2016 – Friday July 15, 2016
On Monday, the S&P 500 closed at a record high of 2,137, with markets still rallying from last week’s exceptionally good jobs report. Ten year Treasury yields remained near record lows, at 1.43%.
On Tuesday, the JOLTS job report for May fell sharply by 5.9% to 5.5 million jobs, fears over Brexit subsided, and Japan’s Prime Minister Shinzo Abe ordered new stimulus for his country’s economy. Markets rallied, and the Dow Industrials and the S&P 500 both closed at record highs.
On Wednesday, import prices for June rose .2% on top of the prior month’s 1.4% rise. Export prices rose .8% on top of the prior month’s 1.2% rise. The EIA petroleum status report for the week ending July 8th showed a decline of 2.5 million barrels and the Federal Reserve released its Beige Book report. Eleven of twelve Fed districts are reporting growth, however, the consumer sector shows signs of softening, even though the labor market remains stable. Oil prices remain too soft to create inflation, with U.S. crude falling to a two month low of $44.75 a barrel. Markets ended the day up slightly, however, this was enough to set new highs for both the Dow Industrials and the S&P 500.
On Thursday, jobless claims for the week ending July 9th were unchanged compared to the prior week at 254,000. The producer price index for June was up .5%, compared to the prior month’s .4% gain. The Dow Industrials gained 134 points to close at another record high, and the S&P 500 also closed at a record. On Friday, retail sales for June showed a gain of .6%, compared to the prior month’s .2% gain and much higher than expectations. Industrial production for June was up .6% compared to the prior month’s .3% decline, also higher than expectations. Markets opened up slightly on the news. Now let’s take a look at some stocks.
Shares of Evolent Health Inc. (NYSE: EVH) went up about 20% Wednesday after the healthcare company announced it will acquire the majority of competitor Valence Health Inc. for about $145 million. Valence Health is a private equity-backed health care IT and services firm with expertise in the Medicaid and pediatric markets.
Amazon (NASDAQ: AMZN) is reporting strong numbers associated with their latest Prime Day. The online retailer said Wednesday that the Prime Day this week was its biggest sales day ever, with worldwide orders rising more than 60 percent compared to last year. In the U.S., orders increased by about 50% over last year.
Japanese social networking company, Line (NYSE: LN), made its debut on the New York Stock Exchange Thursday. Line opened to the public at $42 per share, with 22 million shares offered, and is now the largest technology IPO of 2016, which hasn’t been a good year for IPO’s so far.
Shares of JPMorgan Chase & Co. (NYSE: JPM) went up after the investment bank reported quarterly earnings easily surpassing expectations. The company reported profit of $1.55 per share, compared to estimates of $1.43 a share, on revenue of $25 billion.