On Monday there wasn’t much economic news and Treasury markets were closed in observance of Veteran’s Day. Trading volume in stocks was light, however, markets took a hit over weekend comments President Trump made dampening enthusiasm over a trade deal with China. In addition violent protests in Hong Kong spooked investors. Nevertheless, the Dow Industrials managed to close up 10 points to finish at a record high.
Tuesday was another light trading day as investors mulled a speech President Trump gave in which he said China is dying to make a deal, but has taken advantage of the U.S. in the past. The NFIB small business optimism index for October rose .6 point to 102.4, but markets didn’t move much overall.
On Wednesday the consumer price index for October rose .4%, slightly higher than expected, and Federal Reserve chair Jerome Powell told Congress that he doesn’t see the Fed cutting interest rates any further as the economy is in sustained expansion and inflation is near the Fed’s 2% objective. Reports surfaced that the U.S.-China trade deal has hit some snags as the U.S. pushes for stronger concessions on intellectual property theft and to curb forced technology transfers. Both the Dow Industrials and S&P 500 closed at record highs.
On Thursday jobless claims for the week ending November 9th rose an unexpectedly sharp 14,000 to 225,000, while the producer price index for October rose .4%, also a little more than expected. More reports of trade talks between the U.S. and China hitting a snag over agricultural purchases dampened traders’ enthusiasm. Markets finished mixed, however the S&P 500 managed to eke out a record high close.
On Friday retail sales for October rose .3%, and industrial production for October declined .8%. None of that mattered however, after White House economic advisor Larry Kudlow said the U.S. and China were close to a trade deal and markets jumped at the open. Now let’s take a look at some stocks.
The Boeing Company’s (NYSE: BA) shares rose by as much as 6.5% on Monday after the company said it expects a resumption of its MAX deliveries in December and it expects the aircraft to return to commercial service in January. The Company said it has been working closely with the FAA to meet five milestones in order for the FAA to rescind the grounding of the aircraft.
Canada Goose Holdings Inc. (NYSE: GOOS) reported its second quarter results on Wednesday morning, topping analysts’ revenue and earnings estimates, which initially sent shares higher by 7%, however, shares quickly retreated. For the quarter, the company reported earnings of CAD 0.57 cents per share on revenue of $294 million. Despite the upbeat quarter, Canada Goose warned that protests in Hong Kong will hurt its business.
The Walt Disney Company’s (NYSE: DIS) shares gained 5% on Wednesday after the company reported it had 10 million people signed up for the Disney+ streaming service since launching on Tuesday. While it was not completely clear how many subscribers were from free promotions, Disney’s subscriber count was three-times higher than analysts’ consensus.
Cisco Systems, Inc. (NASDAQ: CSCO) announced its first quarter financial results after the closing bell on Wednesday, earning $0.84 per share on revenue of $13.6 billion. This beat analysts’ expectations for both top and bottom line, however, shares fell by almost 8% Thursday morning after Cisco forecast a revenue decline.
NVIDIA Corporation (NASDAQ: NVDA) reported its third quarter results after the closing bell on Thursday, coming in with earnings of $1.78 per share on revenue of $3 billion. Analysts anticipated earnings of $1.84 per share. The company reported that revenue fell by 5% year-over-year. Nvidia shares were up 1% shortly after reporting.