Monday October 31, 2016 – Friday November 4, 2016
On Monday, personal income for September rose .3% compared to the prior month’s .2% gain, consumer spending rose .5% versus the prior month’s .1% drop, and the PCE price index rose .2%.
On Tuesday, the PMI manufacturing index for October was up 1.9 points to 53.4, and the ISM manufacturing index was up .4 points to 51.9. Construction spending for September decreased .4%. Better than expected earnings were drowned out by political jitters and markets closed modestly down, with the Dow Industrials losing 105 points.
On Wednesday, the ADP employment report for October decreased by 55,000 to 147,000 which was lower than expected and the EIA petroleum status report for the week ending October 28th showed a huge jump in inventories of 14.4 million barrels. The Federal Reserve concluded its two-day meeting and did not change interest rates. Markets closed down modestly, mostly due to nervousness over the election.
On Thursday, jobless claims for the week ending October 29th were up 7,000 to 265,000 and nonfarm productivity for the 3rd quarter rose 3.1%, while unit labor costs rose .3%. Factory orders for September rose .3%.
On Friday nonfarm payrolls for October were 161,000 down 30,000 from the prior month, the unemployment rate fell to 4.9%, and average hourly earnings rose a strong .4%. Markets opened mostly unchanged. Now let’s take a look at some stocks.
Kate Spade & Company (NYSE:KATE) posted better-than-expected quarterly sales and earnings as the company took steps to reduce the amount of discounting. In North America, sales rose 14% to $260 million and international sales rose 8% to $51 million. Gross profit fell to 59.4% as the company boosted promotion expense.
Yelp, Inc. (NYSE:YELP) reported quarterly earnings that topped analysts’ estimates and announced a structuring plan to cut cost. The online business reviews company said its 3rd quarter net income was $2.1 million, or 2 cents a share, compared with a loss of $8.1 million, or 11 cents a share, a year earlier. Yelp shares jumped more than 10% to $35.74 on Wednesday morning.
Alibaba Group Holding Limited (NYSE:BABA) announced revenues and earnings that beat analyst expectations on Wednesday. The company posted earnings per share of 5.26 yuan, which is an increase from 3.61 yuan last year. Revenue increased 55% to 34 billion yuan from 22 billion a year ago.
Fitbit Inc. (NYSE:FIT) revenue forecast for its holiday shopping quarter fell below analysts’ estimates, due to low demand and production issues with its sports band, Flex 2. Shares of the company plunged more than 30% during aftermarket trading on Wednesday and were approaching record lows.
Facebook, Inc. (NASDAQ:FB) released earnings that beat analysts’ expectations, on both the top and bottom lines, as well as user count. However the company’s chief financial officer warned that the number of ads on the website could decrease next year, slowing revenue growth. Wall Street wasn’t impressed, and Facebook shares tanked over 5% during aftermarket trading.