On Monday the trade deficit for September was lower than expected, coming in at $70.4 billion, however, exports declined 1.6% and imports declined 2.3%. Markets rallied on strong earnings with the S&P 500 closing at a record high.
On Tuesday the Case-Shiller home price index for August declined .2%, while consumer confidence for October fell .4 points to 125.9. The pending home sales index for September rose 1.5%. Ten year Treasuries yielded 1.78% and West Texas Intermediate Crude finished at $54.77 a barrel. Markets declined slightly as investors waited for the outcome of the in-progress Fed meeting.
On Wednesday the ADP employment report for October estimated that October’s private payroll growth will rise 125,000 and the EIA status report for the week ending October 25th saw crude oil inventory rise 5.7 million barrels. The third quarter GDP was 1.9% and the Federal Reserve concluded their meeting, lowering its policy rate by 25 basis points to a range of 1.50%-1.75%. Markets rallied with the S&P 500 closing at a record high.
On Thursday jobless claims for the week ending October 26th rose 5,000 to 218,000 while personal income for September rose .3%, consumer spending rose .2%, and the PCE price index remained unchanged. Reports surfaced that Chinese officials didn’t think they would be able to reach a long-term trade deal with the U.S., and President Trump’s tweet to reassure investors otherwise didn’t help. Markets fell with the Dow Industrials closing down 140 points.
On Friday the jobs report for October saw non-farm payrolls rise 128,000, higher than expected, while the unemployment rate ticked up to 3.6%. Average hourly earnings rose .2%. The ISM manufacturing index for October rose .5 point to 48.3. At the open, markets rose sharply on the news. Now let’s take a look at some stocks.
Spotify Technology S.A. (NYSE: SPOT) reported its third quarter results on Monday morning, coming in with an unexpected profit causing shares to rally 16%. For the quarter, Spotify earned 0.36 Euros per share on revenue of 1.7 billion Euros. Analysts expected an earnings loss of 0.24 Euros per share. Spotify reported that revenue increased by 28% year-over-year, largely led by the increase in premium users and ad-supported revenue.
Facebook, Inc. (NASDAQ: FB) reported its third quarter results after the closing bell on Wednesday, coming in with earnings of $2.12 per share on revenue of $17.65 billion, beating earnings estimates of $1.91 per share. The social media giant’s shares rose by 4% shortly after reporting.
Apple Inc. (NASDAQ: AAPL) reported its fourth quarter results after the closing bell on Wednesday. The company surpassed revenue and earnings estimates for the quarter, which sent shares 2% higher on Thursday morning. For the quarter, Apple reported earnings of $3.03 per share on revenue of $64 billion.
Etsy, Inc. (NASDAQ: ETSY) reported its third quarter results after the closing bell on Wednesday. The company reported in-line earnings, but topped revenue estimates, however, shares tumbled by 17% on Thursday morning. For the quarter, Etsy reported earnings of $0.12 per share on revenue of almost $198 million. Analysts had expected revenue of $193 million.
Twilio Inc. (NYSE: TWLO) reported its quarterly results on Wednesday after market close coming in with earnings of $.03 per share on revenue of $295 million. Analysts were expecting earnings of $.01 per share on revenue of $288 million. Nevertheless, shares tumbled by 12% on Thursday after providing a lower than expected guidance.