On Monday the PMI composite flash for September was little changed at 51, however, news from Europe wasn’t good as Germany’s manufacturing and service sectors both fell, pointing to a continuing global slowdown. Chinese trade negotiators cancelled a trip to Montana farms and markets ended the day little changed.
On Tuesday the Case-Shiller home price index for July remained unchanged and up 2% year-over-year, while consumer confidence for September fell 9.1 points to 125.1. Markets fell sharply on prospects of President Trump facing impeachment charges stemming from his phone call with the president of Ukraine in which Trump allegedly pressures the foreign leader to look into Joe Biden and his son, Hunter.
On Wednesday new home sales for August increased 7% to an annualized 713,000 units, higher than expected and the EIA petroleum status report for the week ending September 20th saw crude oil inventory increase 2.4 million barrels. The White House released a rough transcript of President Trump’s phone call with the president of Ukraine, soothing markets, and President Trump told reporters at the United Nations that a U.S.-China deal could come “sooner than you think.” Markets rebounded with the Dow Industrials closing up 162 points.
On Thursday the final estimate of the 2nd quarter GDP remained unchanged at 2% and jobless claims rose 3,000 to 213,000. Ten-year Treasuries’ yield fell to 1.69% and U.S. crude settled at $56.50 a barrel, while markets closed modestly lower.
On Friday durable goods orders for August rose .2% while personal income for August rose .4%, consumer spending rose .1%, and the PCE price index was unchanged. Markets opened higher as the U.S. and China scheduled another round of trade negotiations for October 10th. Now let’s take a look at some stocks.
NIO Inc. (NYSE: NIO) reported its second quarter results during Tuesday’s pre-market hours. Nio shares plunged 25% after the Chinese electric vehicle manufacturer reported larger-than-expected losses and cancelled its earnings call with analysts. The company reported an adjusted earnings loss of $0.44 per share on revenue of almost $211 million. Nio said that its revenue grew by almost 3,200% year-over-year, yet saw its net losses widen.
NIKE, Inc. (NYSE: NKE) reported its fiscal 2020 first quarter results and topped analysts’ expectations, coming in with earnings of $.86 per share on revenue of almost $10.7 billion. Overall revenue grew 7% year-over-year, primarily driven by stronger revenues across its geographic regions, with China taking the lead. Nike shares edged 5% higher during Wednesday’s pre-market trading.
Rite Aid Corporation (NYSE: RAD) reported its second quarter results before the opening bell on Thursday, coming in with earnings of $.12 per share on revenue of almost $5.4 billion, beating top and bottom-line expectations. The company, however, issued a lower guidance for earnings for the rest of fiscal 2020. The news sent shares soaring over 26%.
Beyond Meat, Inc. (NASDAQ: BYND) shares surged over 15% during Thursday’s pre-market hours after McDonald’s (NYSE: MCD) announced that it will conduct a 12-week test of a new plant-based burger in Ontario, Canada. The burger, called a P.L.T. or Plant, Lettuce, Tomato is made with a Beyond Meat plant-based burger patty that has been exclusively created for McDonald’s.
Micron Technology, Inc. (NASDAQ: MU) reported its third quarter results after the closing bell on Thursday. Despite topping estimates, Micron shares declined 6% shortly after reporting earnings of $1.05 per share on revenue of $4.8 billion, compared to revenue of $7.8 billion a year ago. Micron has struggled as chip prices continued to increase while inventory issues caused excess supply.