Monday November 6, 2017 – Friday November 10, 2017
On Monday, the mass arrest on corruption charges of eleven Saudi Arabian princes as well as other high-level Saudi officials caused West Texas Intermediate crude to jump 3.1% to $57.34 a barrel, its highest level in over two years. The news didn’t affect equities as the Nasdaq composite, Dow Industrials, and S&P 500 all closed at record highs.
On Tuesday, the JOLTS job openings report rose a tiny amount to 6.093 million, and markets drifted as investors waited for more news regarding tax reform. President Trump toured Asia, however, comments he made on North Korea didn’t have much effect on markets.
On Wednesday, the EIA petroleum status report for the week ending November 3rd showed crude oil inventories increasing 2.2 million barrels. Election results came in and Republicans lost some key races, leading to speculation over the future of tax reform. Bank shares dropped as the spread between the two and ten year U.S. bonds fell to 70 basis points. Earnings season is drawing to a close, with 87% of S&P 500 companies reporting, average earnings growing 6.4% year over year and 74% of companies surpassing expectations.
On Thursday, jobless claims for the week ending November 4th were up 10,000 to 239,000, and markets tumbled on news that a version of tax reform from the Senate will not cut corporate tax rates until 2019. Ten year Treasuries yielded 2.33% and gold closed at $1,286 an ounce.
On Friday the preliminary consumer sentiment for November fell slightly to 97.8, but still remains high. Markets opened modestly lower on profit taking. Now let’s take a look at some stocks.
Weight Watchers International, Inc. (NYSE: WTW) announced its third quarter results Monday after-market and raised its full year fiscal earnings guidance. Revenue for the third quarter was $324 million and end of period subscribers were up 18% year over year to 3.4 million. Earnings per share increased year over year from $0.53 to $0.65, and guidance for the full year was raised to about $1.80. Shares reached a new 52 week high of $54.47 following the news.
Priceline Group Inc. (NASDAQ: PCLN) reported third quarter results that beat analyst estimates but shares fell short due to weak fourth quarter guidance. Priceline reported revenue of $4.4 billion, increasing 22% year over year. The company reported earnings per share of $35.22, increasing 19% year over year. Shares fell as low as $1,632 on Wednesday.
TripAdvisor, Inc. (NASDAQ: TRIP) announced third quarter results late Monday. Total revenue was $439 million, up $18 million or 4% year over year. Non-hotel revenue grew 26% year over year whereby growth in attractions and restaurants took the lead. Shares of TripAdvisor fell below $30 on Wednesday as the company suffered a drop in hotel sales.
Snap Inc. (NYSE: SNAP) reported third quarter revenue of $208 million, increasing 62% year over year, but was below analyst estimates of $237 million. The company reported a loss per share of $0.14 and that was worse than analyst estimates of a loss of $0.13. Snap’s stock price fell as low as $12.15 per share on Wednesday.
NVIDIA Corporation (NASDAQ: NVDA) reported record revenue for the third quarter of $2.6 billion, up 32% from a year ago and up 18% from the previous quarter. All platforms of the company had growth. The quarterly cash dividend was raised 7% to $0.15 per share whereby the company intends to return $1.25 billion to shareholders by fiscal 2019.