Monday April 30, 2018 – Friday May 4, 2018
On Monday personal income for March rose .3% on top of the prior month’s .3% gain. Consumer spending rose .4% compared to an unchanged reading from the prior month. The core PCE price index rose .2% month-over-month, but jumped 1.9% year-over-year, almost at the Fed’s target of 2%. The pending home sales index for March rose .4%.
On Tuesday, the PMI manufacturing index for April rose .9 points to 56.5 and the ISM manufacturing index for April fell 2 points to 57.3. Construction spending for March declined 1.7% compared to the previous month’s 1% gain.
On Wednesday the ADP employment report for April rose 204,000 and the EIA petroleum status report for the week ending April 27th saw crude oil inventories increase 6.2 million barrels. The Federal Reserve finished its two day meeting and kept interest rates unchanged, as expected. The Fed noted the pickup in inflation, and also implied that higher than desired inflation would be tolerated for a time to compensate for the long period of low inflation. The Fed also noted that consumer spending was said to be moderating. Markets ended the day modestly lower on the news, while U.S. crude gained .7% to $67.73 a barrel and 10-year Treasuries yielded 2.97%.
On Thursday, jobless claims for the week ending April 28th rose 2,000 to 211,000. Nonfarm productivity for the first quarter rose .7% and unit labor costs rose 2.7%. U.S. officials went to Beijing to discuss trade issues with China. Markets initially dropped sharply but later recovered most of the losses to close mixed.
On Friday nonfarm payrolls for April rose 164,000, lower than expectations, and average hourly earnings increased .1%. The unemployment rate fell to 3.9%, an 18 year low. Markets opened higher on news that Berkshire-Hathaway purchased 75 million shares of Apple in the first quarter. Now let’s take a look at some stocks.
McDonald's Corporation (NYSE: MCD) announced on Monday first quarter results. Global comparable sales increased 5.5% and Systemwide sales increased 7% in constant currencies. The company returned $2.5 billion to shareholders through share repurchases and dividends. The company’s shares rose to over $166 on Monday.
Apple, Inc. (NASDAQ: AAPL) announced on Tuesday, financial results for its fiscal second quarter. The Company posted quarterly revenue of $61.1 billion, an increase of 16% year-over-year, and quarterly earnings per diluted share of $2.73, up 30%. Apple rose to over $177 per share on Wednesday after the announcement.
Snap Inc. (NYSE: SNAP) reported its first quarter financial results on Tuesday. Revenue was $230 million, up 54% year-over-year driven by growth in Snap Ads. However, revenue was down 19% sequentially, primarily due to seasonality and user interface redesign. Snap reached an all-time low of $10.51 a share on Thursday.
Spotify Technology S.A. (NYSE: SPOT) on Wednesday, reported financial results for its first fiscal quarter. The company reported 170 million monthly active users and 75 million premium subscribers, up 30% and 45%, respectively, year over year. Operating Loss was 41 million Euro or approximately 4% of total revenue.
Tesla Inc. (NASDAQ: TSLA) reported its first quarter financial results on Wednesday with record revenue of $3.4 billion, increasing over 26% percent year over year. The company reported a record high net loss of $785 million or an adjusted-earnings per share loss of $3.35. Tesla shares reached a low of $275.23 on Thursday post announcement.