The week ended 5/31/19 was another difficult week for the major indexes. The indexes averaged a decline for the week of 2.67% with the Dow Jones Industrial Average declining 3.01%, the S&P 500 Index declined 2.62% and the Nasdaq declined 2.37% for the week.
Many ‘experts’ are crediting the potential escalation of the trade dispute with China and the addition of the president potentially using trade as a weapon to fight illegal immigration through Mexico.
As with any week there are always stocks that go up and stocks that go down, this week was no different. Some of the biggest changes for the week:
- Agnico-Eagle Mines (Basic Industries: AEM) increased from $41.14 a share to $43.59 a share, an increase of 6.0% for the week.
- Turning Point Therapeutics (Consumer Durables: TPTX) declined from $40.97 a share down to $34.82 a share, a decline of 15.0%.
- Phillips-Van Heusen (Consumer Non-Durables: PVH) declined from $106.96 a share to $85.19 a share, a decline of 20.35%.
Many of the big name technology companies moved along with the markets this week with Alphabet (Google) declining 2.63%, Apple declining 2.18%, Facebook declining 1.98% and Amazon declining 2.64% for the week. All around the averages for the week.
The chart below illustrates that there were not positive sectors for the week. The Real Estate sector was the “big winner” for the week with a decline of 1.36% for the week. The biggest decline for the week was the Communication Services sector, which declined 6.73%. A good bell weather of the sector would be Verizon Communications (VZ), which declined 8.38% for the week.
The week ended 5/31/19 was a fairly slow week for earnings announcements with only 65 ‘worthwhile’ announcements this week. The average change for the week for these companies was a decline of 5.4% with a range of -60.0% to an increase of 17.2%. Some of the noteworthy releases for the week are:
- Red Robin Gourmet (RRGB), announced earnings of $0.19 per share on Thursday, compared with an expectation of $0.49 and $0.69 a year ago. Shares declined from $30.71 a share to $25.58 a share, a decline of 16.7%.
- Costco (COST), announced earnings of $2.05 a share compared with an expectation of $1.83. Shared declined from $247.30 to $239.58, a drop of 3.1% for the week.
- Williams-Sonoma (WSM) announced earnings of $0.81 a share as compared to an expectation of $0.69 on Thursday. Shares jumped 12.3% for the week from $52.08 a share to $58.50 a share.
The first week of a month is always a busy week with data announcements so there will be a lot to digest this week. On Monday, Construction Spending for April will be announced. Tuesday April Factory Orders will be released. On Wednesday ADP will announce their view on May employment while the government will make their announcement on Friday with their Non-Farm Payroll announcement.
The expectation is that the unemployment rate will remain steady at 3.6% and that Nonfarm employment will increase by 183,000 as compared to April’s 263,000. ADP is expected to announce an increase of 178,000 jobs for May after the announced 275,000 increase in April.
Please note – I own no individual shares at the writing of this update so I own no shares mentioned in this article.