On Monday there wasn’t much economic news, however, stocks continued gaining modestly on continued optimism on the U.S.-China trade talks and on a good earnings season. Ten year Treasuries yielded 1.8% and West Texas Intermediate crude finished at $53.31 a barrel.
On Tuesday existing homes sales for September declined 2.2% to an annualized 5.38 million units and U.K Prime Minister Boris Johnson lost his attempt to quickly take the U.K. out of the European Union. Chinese officials noted in an optimistic manner that trade talks were making progress. Markets, however, fell modestly.
On Wednesday the EIA petroleum status for the week ending October 18th saw crude oil inventory decline 1.7 million barrels and markets rose slightly.
On Thursday durable goods orders for September declined 1.1% while jobless claims for the week ending October 19th fell 6,000 to 212,000. The PMI composite flash for October rose .2 points to 51.2 and new home sales for September fell 5,000 to an annualized 701,000 units. Markets were mostly flat but a few good earnings surprises pushed indexes slightly higher by the end of the day.
On Friday consumer sentiment for October decreased ½ point to 95.5, and markets opened higher on strong quarterly earnings from Intel. Now let’s take a look at some stocks.
Biogen Inc. (NASDAQ: BIIB) shares surged by over 35% on Tuesday morning after the Company announced it will seek U.S. FDA approval for its Alzheimer’s drug. Last March, Biogen discontinued clinical trials, however, further review of the data showed a significant reduction in clinical decline.
Microsoft Corporation (NASDAQ: MSFT) reported its first quarter results after market closed on Wednesday coming in with earnings of $1.38 per share on revenue of $33 billion. Total revenue increased by 14% year-over-year, primarily driven by a 14% growth in its Productivity and Business Processes and a 27% growth in its Intelligent Cloud segment, which includes Azure. Microsoft beat both top and bottom line estimates and shares increased 2% on Thursday afternoon.
Tesla, Inc. (NASDAQ: TSLA) reported its third quarter results after the closing bell on Wednesday. The electric vehicle manufacturer smashed analysts’ earnings estimates after reporting a profitable quarter, coming in with earnings of $1.86 per share on revenue of $6.3 billion. Analysts had expected an earnings loss of $0.42 per share. Model 3 production rates grew by 50% year-over-year and Tesla said it will deliver over 360,000 vehicles this year. Tesla shares shot up as much as 20% shortly after the news.
Twitter, Inc. (NYSE: TWTR) reported its third quarter results before the opening bell on Thursday. The social media platform missed analysts’ estimates for both earnings and revenue, which sent shares spiraling down 18%. For the quarter, Twitter reported earnings of $0.17 per share on revenue of almost $824 million, but analysts had expected earnings of $0.20 per share on revenue of $874 million. Twitter warned that performance of its advertising business will continue to suffer in the fourth quarter.
Amazon.com, Inc. (NASDAQ: AMZN) reported its third quarter results after market close on Thursday. Amazon fell short of earnings expectations, which sent shares lower by 7% during extended trading hours. For the quarter, Amazon reported earnings of $4.23 per share on revenue of $70 billion. The weaker-than-expected earnings is largely due to heavy investment as the company spent over $800 million to expand its one-day delivery service.