July 5, 2019 Weekly Wrap up LIVE from the floor of the NYSE

On Monday construction spending for May fell .8% vs. a .4% gain for the previous month.  The PMI manufacturing index for June rose .1 point to 50.6, one of its lowest reading in 10 years, and the ISM manufacturing index fell .4 point to 51.7.  The U.S. and China agreed not to impose new tariffs and President Trump said restrictions on American companies selling to Huawei will be relaxed.  Markets surged with the Dow Industrials gaining 117 points and the S&P 500 closing at a record high. 

On Tuesday markets continued upward, however, banks didn’t do very well as interest rates continue to decline.  The Dow Industrials gained 69 points, and the S&P 500 set another record closing high.  Ten-year Treasuries yielded 1.98% and gold climbed 1.5% to $1,409 an ounce.  West Texas Intermediate crude fell 3.4% to $57.12 a barrel. 

On Wednesday motor vehicle sales for June fell .6% to an annualized 17.3 million units and the ISM non-manufacturing index for June fell 1.8 points to 55.1.  The ADP employment report for June saw a lackluster 102,000 rise in private payrolls, and jobless claims for the week ending June 29th declined 8,000 to 221,000.  Factory orders for May declined .7%.  All the weak economic data led investors to believe the Fed will lower interest rates later this month, and markets rallied with both the Dow Industrials and S&P 500 closing at all-time highs. 

On Thursday, markets were closed for the Fourth of July holiday, and on Friday nonfarm payrolls for June shot up a strong 224,000, the unemployment rate ticked up .1% to 3.7% and average hourly earnings rose .2%.  Markets opened sharply lower as investors worried that strong job growth dampened prospects of an interest rate cut by the Fed.  Now let’s take a look at some stocks.

Tesla, Inc. (NASDAQ: TSLA) announced record second quarter production of over 87,000 vehicles and record deliveries of over 95,000 vehicles, late Tuesday, however, the company didn’t release any Q2 earnings.  Shares surged on the news to over $239 on Wednesday morning.

OMNOVA Solutions Inc. (NYSE: OMN) announced that it has agreed to be acquired by Synthomer plc for $10.15 per share in an all-cash transaction.  The price represents a 52% premium over OMNOVA’s three-month weighted average share price.  OMNOVA’s shares rose over 50% on the news, reaching a high of $10.70 on Wednesday.

USANA Health Sciences, Inc. (NYSE: USNA) announced on Tuesday, preliminary second quarter results and updated its outlook for fiscal year 2019.  The company disclosed the challenging consumer environment it encountered in China and anticipated weaker net sales of around $255 million, down from $301 million a year ago. USANA’s shares fell after the announcement, reaching a low of $61.26 on Wednesday.

Karyopharm Therapeutics Inc. (NASDAQ: KPTI) announced on Wednesday that the U.S. FDA has approved oral XPOVIO for the treatment of adult patients with relapsed or refractory multiple myeloma.  Shares surged over 35% on the announcement, reaching a high of $9.25 on Wednesday.

6 Comments
  1. Craig Dubowsky 3 months ago
    Reply

    $TSLA buyers of the $250 calls for 7/19.

    • Vince Lanci 3 months ago
      Reply

      $tsla numbers are still going lower despite the “record” Q2 delivery figure & a supposed slam dunk against the bear case.

  2. Matthias Hernon 3 months ago
    Reply

    Shorts having their fun with $KPTI but were only able to bounce it off 200 DMA on massive volume. Close on drop near previous huge bullish candle close & sitting above 200 DMA & above 70 RSI. Massive call buying with huge IV. Going up IMO

    • John Reznick 3 months ago
      Reply

      $KPTI just put 30% of my accounts into $KPTI LONG AND STRONG BABY

  3. Zack Clayton 3 months ago
    Reply

    Remember when Elon was going to do massive cuts and his CFO and himself were going to sign off on all expenses?? Remember when Elon was going to close the stores and sell 100% of the cars on the internet?? That was classic stupid, he forgot he had leases and no way out? $tsla

  4. Glenn Herbert 3 months ago
    Reply

    $TSLA 300 billion makretcap by 2020 #SelfDrivingCars
    Tesla Arcade is priming us for the self-driving future, we just don’t know it yet

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