June 3, 2016 Financial News – Business News – Stock Exchange – NYSE – Market News
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Business News – Financial News – Stock News — New York Stock Exchange — Market News 2016
Business News – Financial News – Stock Exchange — Wall Street — Market News – New York Stock Exchange 2016
This was a shortened holiday trading week but also a very busy, data heavy week for the U.S. economy.
On Tuesday, the last trading day of May, stocks were mixed, personal spending jumped 1 percent in April, and the biggest increase in more than six years. Personal income rose 0.4 percent but consumer confidence declined in May to 92.6. The Chicago PMI reading for May fell to 49.3, indicating a slight contraction in manufacturing activity in the Midwest region.
On Wednesday U.S. stocks recovered losses to close a touch higher. The Fed’s Beige Book released Wednesday afternoon said there was modest economic growth since the last report. Fed officials see the job market tightening across most regions of the U.S., pushing up wages for many workers. The ISM’s manufacturing index rose to 51.3; auto sales came in at 17.45 million; and April construction spending fell 1.8 percent.
On Thursday markets closed little changed. The latest ADP report showed the U.S. economy added 173,000 jobs in May, exactly in-line with expectations. Initial jobless claims fell 1,000 to a 267,000 level which is a five-week low.
On Friday a huge miss on the May jobs report, which showed only 38,000 jobs were created in the month, much weaker than expected, but the unemployment rate fell from 5% to 4.7%., but not for good reasons, as more people stopped looking for work and fell out of the workforce. The weak May jobs report may very well take a June rate hike off the table for the Fed.
Now let’s take a look at some stocks
Joy Global (NYSE: JOY) jumped more than 8.5% after the mining equipment specialist released its fiscal second-quarter financial report. The company surprised investors by posting a modest profit, despite a 26% quarterly revenue decline. The company will cut about $100 million in costs by end of this year.
Shares of Michael Kors (NYSE: KORS) were on fire after the retailer beat earnings forecasts and investors reacted enthusiastically to the news. Michael Kors’ revenue climbed 11% to $1.2 billion for the most recent quarter. However, looking ahead, the retailer is projecting a weak outlook for its new fiscal year.
Under Armour (NYSE: UA) stock fell 5% after-hours on Tuesday; the downshift is entirely due to the impending bankruptcy of Sports Authority, which is a large wholesale customer of Under Armour, and is in process of liquidation. Under Armour has to take a hefty impairment charge that will pinch profits to at least $50 million this year. The company dialed back its 2016 outlook; revenue growth is now expected to come in at 24% compared to the 26% number that was forecasted in April.
Frontline (NYSE: FRO) stock climbed on Tuesday after the company posted its first quarter earnings. The shipping company reported total operating revenue for the quarter was $227 million, while net income jumped 25.8 percent, easily beating Wall Street’s estimates of $187.2 million.
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