Monday, July 25, 2016 – Friday July 29, 2016
On Monday energy stocks fell sharply when U.S. crude oil dropped 2.4% to $43.13 a barrel, however, trading volume overall was light as investors waited for the release of earnings, and the outcome of the Federal Reserve meeting.
On Tuesday, the Case-Shiller home price index for May was down .1% on top of the prior month’s .2% drop. New home sales for June were up 3.5% to an annualized 592,000 units, and consumer confidence for July fell only one-tenth of a point, holding on to June’s big gains. Earnings were mixed and markets also closed mixed.
On Wednesday, durable goods orders for June were weak for the second month, down 4% on top of the prior month’s 2.8% drop and the EIA petroleum status report for the week ending July 22ndshowed crude oil inventories increased by 1.7 million barrels. The meeting of the Federal Reserve concluded, and they voted to keep interest rates unchanged. In a statement, the Fed noted strong nonfarm payroll gains and increases in household spending, however, any mention of global events was missing, implying that fears over Brexit have subsided. The 10 year Treasury yield settled at 1.51%, U.S. crude oil dropped to $41.92 a barrel, and the Dow Industrials closed about 1 point lower.
On Thursday, jobless claims for the week ending July 23rd were up 14,000 to 266,000. Mixed earnings reports left markets uncertain, however, the NASDAQ composite closed up 15 points to its highest level of the year.
On Friday, the 2nd quarter GDP came in at 1.2%, weaker than expected, however, the consumer spending component was very strong, up 4.2%. Markets opened mixed as the energy sector continued to struggle. Now let’s take a look at some stocks.
Social media giant Facebook (NASDAQ: FB) announced spectacular quarterly earnings, far exceeding analysts’ expectations. The majority of Facebook’s users are on mobile devices, where the company generated most of its ad dollars. Advertising on cellular devices accounted for roughly 84% of Facebook’s $6.2 billion in ad sales during its second quarter. Profit from mobile ads increased 80% in the latest quarter compared to overall revenue growth of 59%.
Shares of Apple (NASDAQ: AAPL) climbed over 7% after releasing better-than-expected quarterly earnings of $1.42 per share on revenues of $42.4 billion surpassing expectations of $1.38 per share. Services revenue grew 19% due to the popularity of the app store.
Amazon (NASDAQ: AMZN) shares were up more than 2% Thursday after-market, as the company posted earnings of $1.78 per share, strongly beating expectations of $1.11, along with revenue of $30.4 billion beating forecasts of $29.6 billion. Amazon says Prime Day, which was not included in this past quarter’s results, was a huge success, with worldwide orders up as much as 60% compared to last year’s Prime Day.
Google’s parent company, Alphabet (NASDAQ: GOOGL), saw its shares rise over 4% on Thursday during after-hours trading when the company reported earnings of $8.42 per share on revenues of $21.5 billion beating earnings expectations by $0.38 a share and beating revenue expectations by $740 million. Aggregate paid clicks rose 29% from the same period last year, and paid clicks on the company’s websites were up 37% year over year.