The week was highlighted with Wednesday’s employment report from ADP and the BLS labor report on Friday. Both reports were good enough to push the unemployment rate down to the lowest level its been since the late 60s. The current unemployment rate is 3.6% after adding 263,000 jobs for the week.
The employment reports pushed markets up on Friday so that the DJIA ended the week up 0.14%, the S&P 500 ended up 0.2% and the Nasdaq was up 0.22% for the week.
The week was also highlighted with the initial public offering (IPO) of a company called Beyond Meat (BYND). The stock went public on Thursday opening at $46 a share after pricing its IPO at $25 a share. The stock closed its first day at $65.75 increasing 163% on the first day. The stock closed the week at $66.79 a share. This is the biggest increase in price since the heady days of 2000 before the internet bubble burst. The company produces plant based meat.
The sector that had the largest weekly change is the Energy sector. Energy stocks declined, on average 3.23% for the week. The majority of the industries within the sector suffered declines with several companies suffering significant declines, such as Pacific Gas & Electric (PCG) declining 8.2% for the week and Western Midstream Partners (WES), a natural gas distributor declining 8.95%
This past week was highlighted by a lot of earnings releases with over 770 companies reporting this week. Some of the big names reporting this week are:
- Alphabet (GOOG) reported earnings this week and suffered a 6.8% decline for the week as revenue growth, which was 16.7% ahead of last year, but well below what many analysts were looking for.
- Apple (AAPL) reported earnings of $2.46 per share, $.10 ahead of consensus estimates. This helped the stock increase 3.6% for the week closing at $211.75.
- Shopify (SHOP) reported earnings of $.09 per share with more analyst estimates looking for a loss of $.05. This boosted the stock 18.8% for the week to close at $264.03.
- Texas Roadhouse (TXRH), a restaurant chain reported earnings of $0.70 a share, $0.11 lower than expected. This miss pushed the stock down 9.7% for the week to close at $54.72
This week will have a number of stories to look forward to that will drive markets including:
- The anticipated IPO of UBER. This one will be interesting to see after the IPO of LYFT several weeks ago. LYFT stock was up this week but is still trading below its IPO price.
- Inflation numbers will be reported on Friday with the consumer price index (CPI) expected to be at 2.1%, an increase over March’s 1.9%.
- A number of earnings releases are scheduled for this week including Tyson Foods ($1.14 expected), KLA-Tencor ($1.67 expected), TripAdvisor ($0.31 expected).