After the 2.1% decline in the major US market indexes last week, the week ended March 15th reversed last weeks’ decline and added some value. Last week the major indexes increased 2.41% with the Dow Industrials average increasing 1.1%, the S&P 500 increasing 2.5% and the tech heavy hasdaq increased by 3.7%. The global markets also saw an increase of 2.1%, so stock market investors did well last week.
All of the major stock industries increased last week after a mostly down week last week. The Health & Health Care industry lead the markets forward increasing 4.4% and the Technology industry added 3.6%. The lagging industries were Industrials, up .5% and the Materials industry up 1.4%.
The table below illustrates the movement of all industries:
We are a little late in the earnings season but a few larger companies announced earnings for last quarter including:
- Dicks Sporting Goods (DKS)reporting earnings of $1.07 vs. an expectation of $1.06, which was about 13% worse than the same period last year. This shortfall led to their stock price dropping 7.4%
- Oracle (ORCL) reported earnings of $0.87 (excluding extraordinary items) as compared to the expected $0.84, ahead of last years’ $0.83 earnings. The performance for the week was a disappointment dropping 2.6% for the week.
- Guardant Health (GH), from those that reported earnings had the largest share price increase last week, increasing 54.5% from $62.92 last week to close the week at $97.21. This came after reporting a loss of $0.30 as compared to the expected loss of $0.35, significantly better than last years’ $1.27 loss.
- Tailored Brands (TLRD) announced earnings on Wednesday last week with a loss, excluding extraordinary items of $0.28 compared with a loss of $0.29 expected, on a decline in revenue of about 8.6%. The stock declined 25% for the week
Every week most market watchers view one of a few things that drove the change in the market for the week. This past week was really interesting, because the things that could have moved the market, didn’t seem to. The issues with the Boeing 747 MAX planes did keep the DJIA a bit soft compared to the other indexes, but didn’t lead to problems elsewhere. There wasn’t really any political upheaval to blame market moves on. The higher education-TV star & rich CEO scandal likely wouldn’t move the markets.
I’ll just say that the markets moved up this week in response to moving down so much last week. Maybe the computer models just thought they overreacted to something last week and just wanted to fix things this week.
Whatever it was, we will surely take it and thank you.
This coming week has a few economic reports coming out that could impact segments of the stock market. On Monday, the National Association of Home Builders releases its housing index for March. Most economists are looking for a moderate increase over February.
Tuesday will feature a report from the Census Bureau for Factory Orders for January. The expectation is for a 0.4% increase after Decembers’ 0.1% increase.
Later in the week; the Conference Board will release its Leading Economic Index report for February, the National Association of Realtors releases its existing home sale report for February and the Treasury Department will release its monthly budgets statement for the government covering February.