On Monday there wasn’t much economic news and investors anticipated the U.S.-China trade talks set for later in the week. Markets see-sawed but ended up down with the Dow Industrials losing 95 points.
On Tuesday the producer price index for September unexpectedly declined .3% and markets fell sharply as the U.S. punished China for its treatment of predominantly Muslim ethnic minorities. The U.S. expanded its trade blacklist to include some of China’s artificial intelligence firms as well as imposing visa bans on certain Chinese officials linked to the mass detention of Muslims in Xinjiang province. The Dow Industrials closed 313 points lower.
On Wednesday the JOLTS job openings report for August showed a decrease of 1.7% to 7.051 million, its third straight monthly decline and the EIA petroleum status report for the week ending October 4th saw crude oil inventory increase 2.9 million barrels. Markets rallied on reports that China was willing to do a partial trade deal and the Dow Industrials closed 180 points higher.
On Thursday the consumer price index for September was unchanged compared to the prior month’s .1% gain, and jobless claims for the week ending October 5th fell 10,000 to 210,000. Ten year Treasuries yielded 1.66%, West Texas Intermediate crude finished at $53.69 a barrel, and gold closed at $1,493 an ounce. Markets rallied after President Trump confirmed in a tweet he would be meeting with the head Chinese trade negotiator on Friday and the Dow Industrials closed 150 points higher.
On Friday import prices for September rose .2% and export prices declined .2%. Consumer sentiment for October rose 2.8 points to 96, higher than expected. President Trump sent out a tweet saying good things were happening at the trade talk meetings and markets took off with the Dow Industrials surging almost 400 points at the open. Now let’s take a look at some stocks.
Domino’s Pizza, Inc. (NYSE: DPZ) reported its third-quarter results before the opening bell on Tuesday, coming in with earnings of $2.05 per share on revenue of almost $821 million. The company reported U.S. comparable sales growth of 2.5%, while international same-store sales rose by 1.7%. Moreover, Domino’s also announced that it has trimmed its forecasts for the upcoming two to three years. The results were weaker-than-expected and shares fell 5% shortly after the opening bell.
Levi Strauss & Co. (NYSE: LEVI) reported its third-quarter results after the closing bell on Tuesday. The company topped analysts’ earnings estimates, however, shares declined by 7% on Wednesday. For the quarter, Levi’s reported earnings of $0.31 per share on revenue of $1.45 billion. The company’s European region reported net revenue growth of 14%, while Asia increased by 9%. Despite the revenue growth across Levi’s segments, the company reported that its net income declined by 4%.
Delta Air Lines, Inc. (NYSE: DAL) reported its quarterly results coming in with earnings of $2.32 per share on revenue of $12.6 billion. Despite beating earnings estimates, shares fell by 5% shortly after the opening bell. Delta reported that its revenues grew by 6.5%, primarily driven by the record 55.2 million passengers served in the quarter. Total revenue per available seat mile rose by 2.5% to $16.57.
Bed Bath & Beyond Inc. (NASDAQ: BBBY) shares skyrocketed by as much as 27% on Thursday morning after the company announced the appointment of Mark Tritton as President and Chief Executive Officer of the Company. According to the company’s press release, Tritton’s immediate focus will be accelerating the company’s ongoing business transformation.
PG&E Corporation (NYSE: PCG) shares cratered by 30% on Thursday morning after a judge stripped the company of its right to solely propose a chapter 11 bankruptcy plan, which covers billions of dollars in damages from the wildfires linked to PG&E’s equipment. The decision from Judge Dennis Montali of the U.S. Bankruptcy Court in San Francisco handed shareholders a loss, which ultimately creates an opportunity for other creditors to get a bigger piece of the company.