On Monday the Empire State manufacturing survey for July made a comeback after a terrible June, coming in at 4.3, up from -8.6. Markets eked out small gains and the Dow Industrials closed at a record high as investors continued showing optimism that the Fed will lower interest rates in their next meeting at the end of July.
On Tuesday retail sales for June increased .4% while import prices for June declined .9% and export prices declined. .7%. The housing market index for July increased one point to 65 and industrial production for June remained unchanged. Markets fell modestly after President Trump made some comments that the U.S. and China have a long way to go on trade, and that he could levy more tariffs on China. Ten year Treasuries yielded 2.12%.
On Wednesday housing starts for June fell 1% to an annualized 1.253 million units and the EIA petroleum status report for the week ending July 12th saw crude oil inventory decline 3.1 million barrels. Markets trended down as some disappointing earnings hit the news. In particular, CSX, the shipping giant, lowered its sales forecast leading to fears of a larger economic slowdown.
On Thursday jobless claims for the week ending July 13th rose 8,000 to 216,000 and markets rose after New York Fed President John Williams said it’s better to react quickly to lower interest rates when the economy is showing signs of distress.
On Friday consumer sentiment for July rose .2 point to 98.4 and markets opened modestly higher on earnings optimism as Microsoft blew out quarterly expectations. Now let’s take a look at some stocks.
eBay Inc. (NASDAQ: EBAY) reported its second-quarter results after Wednesday’s market close, coming in with earnings of $.68 per share on revenues of $2.7 billion. This was better-than-expected sending shares higher by more than 5% on Thursday morning. eBay reported that its active buyers grew by 4% year-over-year across all of its platforms, totaling 182 million global active buyers.
Netflix, Inc. (NASDAQ: NFLX) reported its second-quarter results on Wednesday during extended trading hours, coming in with earnings of $.60 per share on revenue of $4.9 billion. The streaming service giant reported negative growth for domestic subscribers, which was completely unexpected, sending shares plunging by more than 10%. International growth was also lower than expected.
Skechers U.S.A., Inc. (NYSE: SKX) reported its second-quarter results after Thursday’s market close. The company topped analysts’ expectations, sending shares 11% higher shortly after reporting. For the second quarter, Skechers reported earnings of $0.49 per share on sales of $1.25 billion. International sales increased by 19.8% year-over-year, leading to a 4.9% growth in total comparable same-store sales.
Microsoft Corporation (NASDAQ: MSFT) reported its fourth-quarter results during Thursday’s extended trading hours. The tech giant surpassed analysts’ expectations for both earnings and revenue, causing shares to rise by over 1%. For the fourth quarter, Microsoft reported earnings of $1.37 per share on revenues of $33.7 billion. The company saw its revenue grow by 12% year-over-year, primarily fueled by its Intelligent Cloud business segment, which includes its Azure cloud, Windows Server, and Github.
Chewy, Inc. (NYSE: CHWY) reported its first-quarter results after market close on Thursday. The pet product supplier reported a narrower loss than expected, sending shares higher by 3% shortly after reporting. For the quarter, Chewy reported net losses of $29.6 million on total sales of $1.1 billion. Compared to the previous quarter, Chewy reported that net losses improved by over 50% and revenue grew by 45%.