May 11, 2018 Weekly Wrap up LIVE from the floor of the NYSE

Monday May 7, 2018 – Friday May 11, 2018

On Monday tech shares continued their three-day winning streak and oil rose to its highest level since November 2014 on speculation that oil supplies will become tighter if the U.S. pulls out of the Iran nuclear deal.  West Texas Intermediate crude closed at $69.80 a barrel. 

On Tuesday the NFIB small business optimism index for April rose one-tenth of point to 104.8, and the JOLTS job openings report for March rose 7.8% to 6.55 million.  President Trump announced he was pulling the U.S. out of the Iran nuclear deal.  Market reaction was mixed, as the move was widely expected.  The dollar rose and the yield on 10-year Treasuries finished at 2.97%. 

On Wednesday, the producer price index for April rose .1% compared to the prior month’s .3% gain.  The EIA petroleum status report for the week ending May 4th saw crude oil inventories unexpectedly fall 2.2 million barrels, causing West Texas Intermediate crude to rally and close above $71 a barrel.  Shares of energy companies were big winners with the Dow Industrial closing 182 points higher, and 10-year Treasuries finishing the day yielding 3%. 

On Thursday the consumer price index for April rose .2%, compared to the previous month’s .1% decline and jobless claims for the week ending May 5th remained unchanged at 211,000.  Markets rose sharply as inflation proved lower than expected, with the Dow Industrials closing up 196 points. 

On Friday import prices for April rose .3% and export prices jumped .6%.  Markets opened higher on the strength of energy stocks which have gone up due to recent increases in the price of oil.  Now let’s take a look at some stocks.

Valeant Pharmaceuticals International, Inc. (NYSE: VRX) announced Tuesday morning, its first-quarter financial results with an operating loss of $2.3 billion, compared to an operating income of $211 million for the first quarter of 2017.  The company raised guidance for full year 2018.  Valeant shares rose to over $21 on Tuesday post announcement. 

JD.com, Inc. (NASDAQ: JD) announced on Tuesday, its unaudited financial results for the first quarter.  Net revenue was $16 billion, an increase of 33% year-over-year and net service revenues were $1.4 billion, an increase of 60% year-over-year.  JD fell to under $37 a share post announcement.

Roku Inc. (NASDAQ: ROKU) reported financial results for its first quarter on Wednesday.  Revenue increased 36% year-over-year, gross profit grew 62%, and gross margin expanded seven percentage points to 46%.  Revenue growth was driven by better than expected Platform revenue and higher than anticipated Player gross profits.  Roku shares rose to over $38 on Thursday morning before selling off.

Booking Holdings Inc. (NASDAQ: BKNG) reported first quarter financial results on Wednesday.  Gross travel bookings were $25.0 billion, an increase of 21% over a year ago and total revenues were $2.9 billion with a gross profit of $2.3 billion, a 25% increase from the prior year.  Shares opened at $2,050 on Thursday after the announcement.

NVIDIA Corporation (NASDAQ: NVDA) reported on Thursday, record revenue for the first quarter ending April 29th, of $3.2 billion, up 66% year-over-year.  During the first quarter, NVIDIA returned $746 million to shareholders through a combination of $655 million in share repurchases and $91 million in quarterly cash dividends.  Prior to the earnings release, Nvidia reached an all-time high of $260.50 per share.

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