On Monday the Empire State manufacturing survey for September fell 2.8 points to 2, however, most market news was focused on the weekend attack of the Saudi Arabia oil field that reduced the kingdom’s oil output by 50% and reduced global daily production by 5%. In addition, China’s growth in industrial production slowed to its weakest level in 17.5 years, and retail sales missed expectations as well. The Dow Industrials closed 142 points lower on the news.
On Tuesday industrial production for August rose .6% and the housing market index for September rose 2 points to 68. Markets recovered somewhat as Saudi Arabia restored almost half of the output lost by the attack and President Trump said China was buying American farm products and a trade deal could come before the election.
On Wednesday housing starts for August rose 1.2% to an annualized 1.364 million units and the EIA petroleum status report for the week ending September 13th saw crude oil inventory rise 1.1 million barrels. The Federal Reserve finished its two-day meeting and, as expected, cut the Fed Funds rate by 25 basis points to a range of 1.75-2.00%. However, the vote was 7 to 3, with one member wanting a 50-basis point drop, with two others wanting no cut. Markets didn’t do much as investors were disappointed that the Fed didn’t seem to be considering further cuts. Ten-year Treasuries fell one basis point to 1.79%.
On Thursday existing home sales for August rose 1.3% to an annualized 5.49 million units and jobless claims for the week ending September 14th rose 2,000 to 208,000. Once again markets didn’t move much.
On Friday markets opened modestly higher, however volatility is possible due to the quarterly event called quadruple witching when certain options and futures expire. Now let’s take a look at some stocks.
Adobe Inc. (NASDAQ: ADBE) reported its third quarter results after market close on Tuesday with earnings of $2.05 per share on revenue of $2.8 billion. Despite beating top and bottom-line expectations, Adobe shares edged lower by 4% at the opening bell on Wednesday, after the company provided weaker-than-expected guidance for the fourth quarter.
FedEx Corporation (NYSE: FDX) reported its first quarter results after the closing bell on Tuesday, coming in with earnings of $3.05 per share on revenue of a little over $17 billion. However, the company missed earnings and warned about weakening global macro conditions. FedEx shares plunged 14% on the news.
Chewy, Inc. (NYSE: CHWY) reported its second quarter results during Tuesday’s extended trading hours. Shares edged lower by 2%, despite the company reporting narrower-than-expected losses, losing $0.10 per share on revenue of $1.1 billion. Analysts expected an earnings loss of $0.11 per share. Chewy reported that its quarterly revenue grew by 43% compared to the same quarter a year ago, and that it had a total of 12 million active customers, representing a 39% increase year-over-year.
General Mills, Inc. (NYSE: GIS) reported its first quarter results during Wednesday’s pre-market hours. The company surpassed analysts’ estimates, sending shares roughly 2.5% higher. The company reported earnings of $0.79 per share on revenue of $4 billion. Revenue declined by 2%, largely due to lower sales in its organic net sales, however, General Mills’ Pet segment reported a 7% growth in net sales.
Datadog, Inc. (NASDAQ: DDOG) debuted on the Nasdaq Stock Market on Thursday. The stock price popped as much as 50% shortly after trading commenced. Datadog is a monitoring and analytics platform for developers, IT operations teams, and business users in the cloud space. The IPO raised $648 million for the company, and could raise an additional $745 million if the underwriters exercise their options to buy additional shares.