Monday October 17, 2016 – Friday October 21, 2016
On Monday, the Empire State Manufacturing Survey for October was below zero for the third month in a row, coming in at -6.8, and industrial production for September rose .1% compared to the prior month’s .5% decline. U.S. crude oil fell slightly as production from non-OPEC suppliers continued to grow.
On Tuesday, the consumer price index for September rose .3% compared to the prior month’s .2% gain, and stronger than expected quarterly reports helped boost stocks, with 52 companies reporting numbers that beat bottom line estimates. The Dow Industrials closed 75 points higher.
On Wednesday, housing starts for September fell 9% to an annualized 1.047 million units, however, permits were up 6.3% to 1.225 million units. The EIA petroleum status report for the week ending October 14th showed a decline in crude oil inventories of 5.2 million barrels, and U.S. crude rose 2.6% to settle at $51.60 per barrel. The Federal Reserve released its Beige Book and it did not contain any surprises, showing a modest economy, not particularly strong with regards to wage growth or inflation, but not exactly weak either.
On Thursday, jobless claims for the week ending October 15th rose 13,000 to 260,000 and existing home sales for September rose 3.2% to an annualized 5.47 million units.
On Friday markets opened mostly lower on mixed earnings reports and strength in the dollar. Now let’s take a look at some stocks.
Netflix, Inc. (NASDAQ:NFLX) posted quarterly earnings showing a 50% rise in its consumer base. With several exclusive shows aired across the globe, the company draws far more new customers internationally than in the U.S. Netflix reported earnings of $0.12 per share on revenue of $2.3 billion. Shares soared 20% on the news.
Shares of Intel Corporation (NASDAQ:INTC) fell despite beating consensus estimates after the company’s outlook for next quarter’s revenue disappointed. The company reported earnings of $0.80 per share on $15.8 billion in revenue, while for next quarter, they expect $15.7 billion in revenue, however, analysts were expecting closer to $15.9 billion.
Harley-Davidson Inc (NYSE:HOG), which holds around a 50% share of the motorbike segment, announced its reorganization plan to reduce jobs and cut costs after reporting slipping sales and profits. In the third quarter, sales of Harley reached $1.3 billion, with revenue of motorcycles and related products dropping to $1.09 billion from the $1.14 billion in the same period last year. Shares were up over 7%.
Morgan Stanley (NYSE:MS) reported a better-than-expected profit on Wednesday, thanks to a surge in trading revenue. The New York-based firm said net income rose 57% to $1.6 billion, or $0.81 a share, in the third quarter, compared with $1.02 billion, or $0.48 a share from a year earlier. Analysts had expected the company to earn $0.63 a share.
Global commerce company eBay (NASDAQ:EBAY) tanked more than 7% after the company beat its 3rd quarter earnings, but had soft guidance. eBay reported earnings per share of $0.45 on revenues of $2.2 billion compared to analysts’ expectations of $0.44 on $2.2 billion in revenues.