On Monday there wasn’t much economic data and markets were mixed as investors waited for stronger progress with trade issues. China’s exports to the U.S. in August fell 1%, sharper than expected and the yield on ten-year Treasuries rose seven basis points to 1.63%.
On Tuesday the JOLTS job openings report for July was down .4% to 7.217 million jobs and the yield on ten-year Treasuries continued rising to 1.73%. Oil dropped after President Trump announced that he fired National Security Advisor John Bolton, however, stocks remained mixed.
On Wednesday the producer price index for August rose .1% compared to the previous month’s .2% gain. The EIA petroleum status report for the week ending September 6th saw crude oil inventory decline 6.9 million barrels. Apple unveiled some new product offerings that impressed analysts causing the tech sector to rally and the general market rose as well on optimism that governments are providing monetary stimulus to prevent economic slowdowns. After the market close, President Trump tweeted that he will delay increasing tariffs on Chinese goods by two weeks.
On Thursday the consumer price index for August rose .1% on top of the prior month’s .3% gain and jobless claims for the week ending September 7th declined 15,000 to 204,000, lower than expected. The European Central Bank launched a new bond buying program and cut its deposit rate by 10 basis points. Markets rallied and closed just shy of previous records set in July.
On Friday retail sales for August increased .4%, higher than expectations, while import prices for August fell .5% and export prices fell .6%. Consumer sentiment for September rose 2.2 points to 92. Markets opened modestly higher on the news and very close to all-time highs. Now let’s take a look at some stocks.
AT&T Inc. (NYSE: T) shares advanced by 6% on Monday morning after Elliott Management announced it owns $3.2 billion in AT&T’s stock. The firm sent a letter to AT&T’s board of directors and expressed ways for the company to “improve its business and realize a historic increase in value.” Elliott noted that AT&T’s stock could be worth as much as $60 per share. AT&T responded and said that it will review Elliott’s comments.
Aurora Cannabis Inc. (NYSE: ACB) reported its fourth quarter results after market close on Wednesday coming in with a net loss of almost 2.3 million Canadian dollars, on revenue of 98.4 million. Despite the revenue miss, Aurora’s net cannabis revenue grew by 61% and Canadian consumed cannabis revenue was almost 45 million Canadian dollars, growing 52% quarter-over-quarter. On Thursday, shares declined by as much as 9% on the news.
Oracle Corporation (NYSE: ORCL) reported its first-quarter results after market close on Wednesday coming in with earnings of $0.81 per share on revenue of $9.2 billion. The company announced that Mark Hurd, one of Oracle’s co-CEOs, is taking a leave of absence due to health reasons. Shares slipped by 5% during extended trading hours after revenue fell short of projections.
The Kroger Co. (NYSE: KR) reported its second quarter results during pre-market hours on Thursday, topping analysts’ earnings estimates, which sent shares over 4% higher at the open. For the quarter, Kroger reported earnings of $0.44 per share on revenues of $28.1 billion. Kroger witnessed its digital sales surge by 31% year-over-year, while its same-store sales were up 2.2%. Analysts expected same-store sales growth of 1.9%.
Broadcom Inc. (NASDAQ: AVGO) reported its third quarter results after market close on Thursday, coming in with earnings of $5.16 per share on revenue of $5.5 billion. The company beat estimates for earnings, however, provided weaker-than-expected guidance, causing shares to fall by 2% during extended hours. Broadcom’s President and CEO Hock Tan said that the semiconductor segment’s demand has bottomed out and will continue to remain at the same level due to an uncertain environment.