On Monday markets tumbled as fallout from the U.S.-China trade situation intensified. China retaliated by raising tariffs on $60 billion worth of U.S. imports starting on June 1st. American farmers were hit hard and shares of Caterpillar, Boeing, Micron Technology, and Apple all fell sharply. The Dow Industrials closed 617 points lower.
On Tuesday import prices for April rose .2% while export prices also rose .2%. Markets rebounded slightly after President Trump made some tweets that held out hope that a deal with China can be reached. The Dow Industrials rose 207 points and 10 year Treasuries yielded 2.41%.
On Wednesday retail sales for April declined .2% compared to the prior month’s 1.7% gain and the Empire State manufacturing survey for May shot up 7.7 points to 17.8. Industrial production for April declined .5% compared to the prior month’s .2% gain and the EIA petroleum status report for the week ending May 10th saw crude oil inventory gain 5.4 million barrels. The housing market index for May rose 3 points to 66 and business inventories for March remained unchanged. Markets rose on reports that President Trump will delay implementation of auto tariffs by up to 6 months, with the Dow Industrials finishing up 115 points.
On Thursday housing starts for April rose 5.7% to an annualized 1.235 million units and jobless claims for the week ending May 11th declined 16,000 to 212,000. President Trump made it difficult for U.S. companies to do business with Huawei, the large Chinese telecom company, due to national security concerns. Despite the potential for this action to increase trade tensions, markets rose strongly with the Dow Industrials closing 214 points higher.
On Friday consumer sentiment for May rose 5.2 points to 102.4, a 15-year high. Despite the good news, U.S.-China trade tensions dragged down markets at the open. Now let’s take a look at some stocks.
Aurora Cannabis Inc. (NYSE: ACB) reported its third quarter results after market close on Tuesday, with larger-than-expected losses of 16 Canadian cents per share on revenue of 75 million. Analysts were estimating a loss of 5 cents per share. Aurora’s gross revenue surged by 367% year-over-year, primarily led by the increase in its consumer base, with the Canadian consumer market rising 37%, the Canadian medical market rising 8% and the International medical market surging 40%. Aurora shares slid 6% on the news.
Alibaba Group Holding Limited (NYSE: BABA) reported earnings of RMB 8.57 per share on revenue of RMB 95.3 billion, exceeding analysts’ estimates. At the end of the quarter, Alibaba reported that annual active customers reach 654 million, an 18% increase year-over-year. Meanwhile, mobile monthly active users reach 721 million, increasing by 22 million year-over-year. Shares rose 1.5% on the news.
Cisco Systems, Inc. (NASDAQ: CSCO) reported its third quarter results after market close on Wednesday. The company exceeded expectations on both top and bottom lines, reporting earnings of 78 cents per share on revenue of almost $13 billion. Cisco’s net revenue rose by 6% year-over-year, primarily driven by growth across its business segments. Cisco’s product revenue increased by 7% to $9.7 billion, while service revenue rose by 3% year-over-year to $3.2 billion.
Pinterest, Inc. (NYSE: PINS) reported its first quarter results on Thursday, coming in with an earnings loss of $0.32 per share on revenue of almost $202 million. Analysts expected earnings of $0.11 per share. Net losses for the Company increased by 21% year-over-year, however, monthly active users grew to 291 million, increasing by 22% year-over-year.
NVIDIA Corporation (NASDAQ: NVDA) reported its first quarter results on Thursday. Despite declining revenues, Nvidia surpassed analysts’ estimates, sending shares 6% higher during extended trading hours. For the quarter, Nvidia reported earnings of $0.88 per share on revenue of $2.2 billion. Nvidia mentioned that revenue fell by 31% year-over-year primarily due to the decline within Nvidia’s data center and OEM segments.