Markets were closed Monday for the Memorial Day holiday.
On Tuesday the Case-Shiller home price index for March rose .1% on top of the prior month’s .3% gain and consumer confidence for May jumped 4.9 points to 134.1, higher than expected. Worry over trade issues with China increased as a Chinese official implied that rare earth metals could be used as leverage against the U.S. The Dow Industrials finished 237 points lower, and the yield on 10-year Treasuries fell to 2.26%, its lowest level since September 2017.
On Wednesday the Dow Industrials slid another 221 points, with retailers hit hard on worries that tariffs will slow revenue growth.
On Thursday the second estimate of the first quarter GDP was revised downward slightly to 3.1% and jobless claims for the week ending May 25th rose 3,000 to 215,000. The pending home sales index for April fell 1.5% compared to the prior month’s 3.9% gain and the EIA petroleum status report for the week ending May 24th saw crude oil inventory decline 300,000 barrels. The inversion between the yield of 3 month and 10 year Treasuries continued growing, with the 3 month yielding 2.38% and the 10 year yielding 2.22%. Nevertheless, markets rebounded slightly with the Dow Industrials closing 43 points higher.
On Friday personal income for April increased .5% while consumer spending increased .3%. The PCE price index fo rApril went up .3%. Markets opened sharply lower after President Trump threatened tariffs on all Mexican imports due to illegal immigration. Now let’s take a look at some stocks.
Total Systems Services (NYSE: TSS) and Global Payments (NYSE: GPN) announced they will combine companies in an all-stock merger. The news sent Total Systems shares almost 9% higher on Tuesday morning, while Global Payments’ shares edged down by 1%. The combined company will provide payment and software solutions to approximately 3.5 million predominantly small-to-mid sized merchant locations and more than 1,300 financial institutions across over 100 countries.
Beyond Meat, Inc. (NASDAQ: BYND) shares rose 7% on Tuesday after the company partnered with Zandbergen World’s Finest Meat to produce plant-based meats in Zoeterwoude, the Netherlands. Zandbergen will create a new manufacturing facility and upon completion in 2020, the partnership will mark Beyond Meat’s first international production capability outside of the U.S.
Canada Goose Holdings Inc. (NYSE: GOOS) reported its fourth quarter and fiscal 2019 results before the opening bell on Wednesday, coming in with earnings of 9 cents CAD on revenue of 156 million CAD. Revenue was weaker-than-expected and shares plunged over 21% on the news. For 2020 Canada Goose is forecasting revenue growth of at least 20% and it expects to open eight new retail stores and a new digital concept store.
Abercrombie & Fitch Co. (NYSE: ANF) released its first quarter results before market open on Wednesday, reporting an earnings loss of $0.29 per share on revenue of $734 million. The company also experienced weaker-than-expected same-store sales growth, which caused shares to tank by 24%. The retailer closed selected stores in Hong Kong, Copenhagen, Milan, Fukuoka, and New York City.
Uber Technologies, Inc. (NYSE: UBER) on Thursday reported its first financial results since launching its IPO. Uber’s shares rose by 0.4% during Thursday’s extended trading hours after reporting net losses of $1 billion on revenue of $3.1 billion, in-line with expectations. During the quarter, the company witnessed its monthly active platform consumers increase by 33% year-over-year to 93 million. Similarly, trips increased by 36% to 1.55 billion compared to the same period a year ago.