June 14, 2019 Weekly Wrap up LIVE from the floor of the NYSE

On Monday the JOLTS job openings report for April was down 25,000 to 7.449 million jobs and markets rallied when the Trump administration decided to drop the threat of additional tariffs on Mexican goods. 

On Tuesday the producer price index for May rose .1% on top of the prior month’s .2% gain and President Trump threatened to further raise tariffs on China if Chinese President Xi Jinping doesn’t meet with him at the G-20 summit later this month.  Markets ended a six day winning streak, with the Dow Industrials closing 14 points lower. 

On Wednesday the consumer price index for May rose .1% on top of the prior month’s .3% gain, and the EIA petroleum status report for the week ending June 7th saw crude oil inventory rise 2.2 million barrels.  The tech sector slumped after an analyst said the recovery in semiconductors will be pushed back to the second half of 2020 and 10-year Treasuries yielded 2.13%. 

On Thursday import prices for May fell .3% and export prices fell .2%.  Jobless claims for the week ending June 8th rose 3,000 to 222,000.  Two oil tankers were attacked near the Persian Gulf causing West Texas Intermediate crude to gain 2.2% to $52.25 a barrel. 

On Friday retail sales for May rose .5% on top of the prior month’s .3% gain, however, markets opened lower on disappointing earnings by semiconductor manufacturer Broadcom as well as reports of slowing industrial production in China.  Now let’s take a look at some stocks.

Salesforce (NYSE: CRM) announced Monday morning that will it acquire Tableau Software (NYSE: DAT) for a total value of $15.7 billion, in an all-stock transaction.  Salesforce said it expects the acquisition to increase its total revenue by $350-400 million and it projects fiscal 2020 earnings to drop about $.38 per share.  Tableau shares traded at about $169 at the opening bell on Monday.

Dave & Buster’s Entertainment, Inc. (NASDAQ: PLAY) reported its first quarter results on Tuesday after market close. The Company missed both revenue and earnings estimates, causing shares to plunge over 20%. The company came in with earnings of $1.13 per share on revenue of $363.6 million.  Revenue did increase by 9.5% year-over-year due, yet comparable store sales slipped by 0.3% during the quarter.

Lululemon Athletica Inc. (NASDAQ: LULU) reported its first quarter results after market close on Wednesday, with earnings of $.74 per share on revenues of $782 million. The athletic wear retailer’s results were better-than-expected, causing shares to spike by 4% during extended trading hours.  Comparable store sales rose by 6%, while direct to consumer net revenue increased by 33%.

RH (NYSE: RH), formerly known as Restoration Hardware, reported its first quarter results after Wednesday’s market close, beating top and bottom line estimates and sending shares 23% higher on Thursday morning. For the quarter, RH came in with earnings of $1.85 per share on revenues of $598 million.  The company saw its revenue increase by 7.4% year-over-year, while its earnings grew 53% year-over-year.

Fiverr International Ltd. (NYSE: FVRR) launched its IPO on the New York Stock Exchange on Thursday morning, offering 5.26 million shares at a public offering price of $21.00 per share.  The first trade executed at $26 and shares then skyrocketed as much as 75%, reaching up to $36.67 per share.  Fiverr is an Israeli-based online marketplace, primarily targeted towards freelancers offering services from various and diverse industries.

5 Comments
  1. Stephan Haller 1 month ago
    Reply

    $CHWY IPO was a great play today. Flipped it a few times.

  2. Randy Frederick 1 month ago
    Reply

    Riding the back of $LULU Still think #Options are way too expensive on this one

  3. Mike Ding 4 weeks ago
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    $LULU BO attempt again after shaking out the gap up buyers post earnings. Long 179.7+

  4. John Reznick 4 weeks ago
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    out of $FVRR well that went south real quick

  5. Oliver Renick 4 weeks ago
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    It’s not game over for $PLAY (consistent 9% rev growth) but adding 15+ stores while comps hit flat and guidance gets cut is not being well received.

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