The week ended 5/19/19 was a tough week for all of the US stock market indexes. The 3 major indexes declined an average of 2.54% on fears of an escalation in the trade battle with China and the expansion of the tariffs on Chinese goods entering the US. The week ended with the Dow Industrials declining 2.12% [the best performance of the 3], the S&P 500 declined 3.3% and the Nasdaq declined by 2.18% on the week.
Trade negotiators tried to close the week with some positive rhetoric which had the Dow flip over 450 points on the day – ending up 0.44% on the day.
The chart below illustrates there were no sectors in the black for the week. The Consumer Staples sector had the best bad performance on the week, losing 0.3%. The technology sector dropped 3.68%, at least partially driven by a big decline in Apple (AAPL) which dropped 6.9% for the week.
It was another busy week for earnings reports with over 640 companies reporting quarterly earnings this week. As with any week there was a wide range in performance. The average weekly performance of all of the companies that we monitored for the week was very similar to the overall market performance which was down 2.4%. Some of the standout (not necessarily good news) reports and performance for the week are:
- Houghton Mifflin Harcourt (HMHC) reported a quarterly loss of $0.95 a share as compared to an expected $.0.76 loss and a loss a year ago of $0.82 a share. Shares closed last week at $8.10 a share and closed this week at $6.52, a drop of 19.5%.
- TripAdvisor (TRIP) reported earnings of $0.36 a share, better than the $0.31 anticipated earnings, but their revenue was 1/2% lower than last year which sent shared down by 13.8%.
- Lyft (LYFT) had their first post-IPO earnings report this week. The company lost $9.02 a share as compared to $10.88, but shares dropped 18.3% on the week.
- Roku (ROKU) reported a loss of $0.09 a share as compared to the expected $0.25 a share, which pushed shares up by 27.3%.
- Sinclair Broadcast (SBGI) reported earnings of $0.23 a share as compared to an expected $0.26. Shares jumped by 37.5% for the week largely because it was reported that they were purchasing 21 local sports channels from Disney, but also because they exceeded last years revenue by 8.5%, which was not expected.
This coming week has nearly 10% of the S&P 500 index reporting earnings including; Bank of America, Citigroup and Goldman Sachs. After this past weeks’ IPO of UBER, this week is likely to feature the IPO of PInterest.
There are a few economic reports that will be coming out this week including; the Leading Economic Index for March from the Conference Board, which will be reported on Thursday. The Census Bureau will be reporting March retail sales data on Thursday as well.