Companies featured in this edition of the newsletter: ENZ, OPS.V
In addition to receiving several earnings reports, investors had to recalibrate their expectations for monetary stimulus from central banks. The Federal Reserve made no changes to its policy stance and only hinted at the possibility of a rate hike in the near term. The Dow Jones Industrial Average lost 0.8% as it finished at 18,432, down 138 points from 18,571 last week and it is up 5.8% for the year. The tech heavy Nasdaq climbed 1.2% and finished at 5,162, up 62 points from 5,100 last week and it is up 3.1% for the year. The S&P 500 set an intraday record high, but finished the week essentially where it started. It closed at 2,174 down 1 point or -0.1% from 2,175 last week and it is up 6.3% for the year. The Russell 2000 finished the week at 1,220, up 7 points or 0.6% from 1,213 and it is up 7.4% for the year.
The Conference board’s Consumer Confidence Index dipped to 97.3 in July from a downwardly revised 97.4 in June. New home sales in June were at a seasonally adjusted rate of 592,000, up 3.5% from the revised May rate of 572,000. The median sales price was $306,700, up 6.1% year over year. Durable goods orders declined 4.0% in June on top of a downwardly revised 2.8% decline in May. Excluding transportation, order was down 0.5% on the heels of a downwardly revised 0.4% decline in May. Initial claims for the week ending July 23 increased by 14,000 to 266,000, and continuing claims for the week ending July 16 were 2.139 million, up 7,000 from the prior week. Overall, there is nothing in this report that will make the market anxious about a weakening in labor market conditions.
The advance estimate for second quarter GDP was a stunner, and it showed output increasing at an annual rate of just 1.2% on the heels of a downwardly revised 0.8% increase in the first quarter. The price deflator was 2.2%. On a seasonally adjusted basis, compensation costs for civilian workers increased 0.6% in the second quarter. Wages and salaries rose 0.6% in the second quarter, while benefits jumped 0.5%. Wages and salaries are up 2.5% year over year while benefit costs are up 2.0%. The Chicago Purchasing Managers Index dipped to 55.8 in July from 56.8 in June. The final reading for the University of Michigan Consumer Sentiment report for July checked in at 90.0. Increased concerns about economic prospects among upper income households were cited as the primary drag on the sentiment reading.
Several market movers reported 2Q 2016 earnings this week. Valero Energy reported 2016 net income of $814 million or $1.73 per diluted share compared with $1.4 billion or $2.66 per share in 2015. Verizon reported net income of $831 million or $0.17 per diluted share compared with $4.4 billion or $1.04 per share last year. Apple reported net income of $7.8 billion or $1.42 per diluted share compared with $10.7 billion or $1.85 per share in the same quarter a year ago. Anthem reported net income of $780.6 million or $2.91 per diluted share compared with $859.1 million or $3.13 per share last year.
Continuing with earnings, Boeing reported a net loss of $(234) million or $(0.37) compared with net earnings of $1.1 billion or $1.59 per share in 2015. Ford Motor Company reported net income of $2.0 billion or $0.49 per diluted share compared with $2.2 billion or $0.54 per share last year. Alphabet, aka Google, reported GAAP net income of $4.0 billion or $4.93 per diluted share compared with $4.9 billion or $7.00 per share in 2015. And Lastly, Amazon reported net income of $857 million or $1.78 compared with $92 million or $0.19 per share in the same quarter a year ago.
No Conferences of note are taking place this week.
Price Alert: Enzo Biochem, Inc. (NYSE: ENZ), a pioneer in molecular diagnostics, hit a 52-week high this past week on Friday at $7.00.
Enzo closed the week at $6.97.
Volume Alert: Opsens Inc. (OTCQX: OPSSF) (TSX: OPS.V), a healthcare company that engages in the development, manufacture, sale, and installation of fiber optic sensors for interventional cardiology, fractional flow reserve (FFR), oil and gas, and industrial applications, saw more than average trading volume on the Toronto Venture Exchange last week. On Friday it traded over 76,000 shares-about three times its three-month average daily volume.
Opsens closed the week at $1.22 on the OTCQX under OPSSF and $1.67 on the Venture Exchange under OPS.V.
A profile, description, or other mention of a company in the newsletter is neither an offer nor solicitation to buy or sell any securities mentioned. While we believe all sources of information to be factual and reliable, in no way do we represent or guarantee the accuracy thereof, nor the statements made herein. THE READER SHOULD VERIFY ALL CLAIMS AND DO ITS OWN DUE DILIGENCE BEFORE INVESTING IN ANY SECURITIES MENTIONED. This publication accepts compensation from companies that it features. This newsletter should not be regarded as an independent publication. Our editors may, from time to time, acquire positions in the companies that they cover. This could represent a conflict of interest. The CEOcast newsletter shall be under no obligation to inform readers about its trading activities. CEOcast's editors reserve the right to buy or sell shares in these companies at any time. The following companies, featured in this newsletter, have compensated CEOcast: Enzo Biochem, five thousand dollars cash per month. Opsens, fifteen thousand dollars cash.