On Monday there wasn’t much economic news, however, a day earlier President Trump felt that progress on the China trade talks was moving too slowly and he issued tweets stating that tariffs on Chinese goods will go up on Friday. This unnerved investors and markets sold off heavily with the Dow Industrials down as much as 471 points, however, in the afternoon it recovered most of its losses to close down only 66 points.
On Tuesday the JOLTS job openings report for March saw a surge of 4.8% to 7.488 million jobs and U.S. Trade Representative Robert Lighthizer said that the U.S. will increase tariffs on Chinese imports on Friday. Even though trade negotiations were scheduled to continue in Washington on Thursday, Lighthizer’s statement dashed investors’ hopes and markets sold off with the Dow Industrials closing down 473 points.
On Wednesday the EIA petroleum status report for the week ending May 5th saw crude oil inventory decline 4 million barrels, and market volatility continued over concerns with trade. Markets ended mostly unchanged.
On Thursday jobless claims for the week ending May 4th declined 2,000 to 228,000 and the producer price index for April increased .2% on top of the prior month’s .6% gain. The yield on three month and ten year Treasuries briefly inverted and West Texas Intermediate crude drifted down to close at $61.57 a barrel. Markets continued falling with the Dow Industrials ending 138 points lower.
On Friday the consumer price index for April saw prices rise .3% on top of the prior month’s .4% gain. Markets sank sharply at the open as tariffs on $200 billion worth of Chinese products increased from 10% to 25%. Now let’s take a look at some stocks.
Lyft, Inc. (NASDAQ: LYFT) reported its quarterly results after the market close on Tuesday posting better-than-expected revenue of $776 million with a net loss of $9.02 per share. However, the company’s large net losses caused its shares to tumble by 3.4% on Wednesday morning. Lyft’s aggressive push into the ride-sharing market resulted in stronger growth in its users. The Company reported that active riders grew by 46% year-over-year to 20.5 million. Revenue per active rider rose by 34% to $37.86.
Roku, Inc. (NASDAQ: ROKU) announced its first quarter results after market close on Wednesday. The Company surpassed analysts’ estimates and provided a better-than-expected outlook, sending shares surging by 22% on Thursday morning. Roku reported an earnings loss of $0.09 per share on revenue of $206 million. Roku’s stronger-than-expected quarter was driven by growth in its active accounts and streaming hours, with active accounts growing by 40% to 29.1 million, and streaming hours skyrocketing by 74% to 8.9 billion hours.
Stamps.com Inc. (NASDAQ: STMP) reported its first quarter results during Thursday’s extended trading hours. The Company slashed its guidance outlook, which caused shares to crater over 54% after the opening bell on Thursday. Stamps reported earnings of $0.87 per share on revenues of $136 million, noting that the Company is expected to take a hit due to contract changes with its partners as well as the ending of its partnership with the United States Postal Service.
Tapestry, Inc. (NYSE: TPR) announced its third quarter results before market open on Thursday with better than expected earnings causing shares to soar by 12% during pre-market hours. The company earned $0.42 per share on revenue of $1.3 billion, and its Coach stores’ comparable store sales increased by 1%. Its Kate Spade segment saw its comparable store sales decline by 3%.
The Trade Desk, Inc. (NASDAQ: TTD) reported its first quarter results and despite stronger-than-expected numbers, the company saw its shares plunge by 17% shortly after the opening bell. Trade Desk reported earnings of $0.49 per share on revenue of $121 million. The company continued to see spending on its Omnichannel grow during the quarter and mobile devices contributed 45% of gross spending for the quarter, highlighting the growing scale and importance of the channel to advertisers.