Companies featured in this edition of the newsletter: ENZ, IMNP
This week featured another heavy dose of quarterly earnings. The stock market entered Friday with a modest weekly loss, but had a rally develop in the wake of a better than expected Employment Situation Report for July. Rate hike expectations remain subdued with the fed funds futures market not pricing in a 50.0% chance of a rate hike until March 2017. The Dow finished the week at 18,543 up 111 points or 0.6% from 18,432, and it is up 6.4% for the year. The Nasdaq finished the week at 5,221 up 59 points or 1.1% from 5,162 last week, and it is up 4.3% for the year. The S&P 500 finished the week at 2,183 up 9 points or 0.4% from 2,173 last week, and it is up 6.8% for the year. The Russell 2000 finished the week at 1,231 up 11 points or 0.9% from 1,219 last week, and it is up 8.4% for the year.
The ISM Manufacturing Index slipped to 52.6 in July from 53.2 in June, this signals a slowdown in growth, but importantly, a number above 50.0 still reflects an expansion in manufacturing activity. Construction spending declined at a seasonally adjusted annual rate of 0.6% in June. The downturn in June featured a decline in both private construction and public construction. Personal income increased 0.2% in June on the heels of a 0.2% increase for May. Personal spending was up 0.4% on top of a 0.4% increase for May. U.S. light vehicle sales were at a seasonally adjusted annual (SAAR) of 17.88 million units in July versus a SAAR of 16.74 million units for June. The ISM Non- Manufacturing PMI dipped to 55.5 in July from 56.5 in June.
Initial claims increased by 3,000 to 269,000 for the week ending July 30, and continuing claims decreased by 6,000 to 2.138 million for the week ending July 23. Factory orders declined 1.5% in June on the heels of a downwardly revised 1.2% decline in May. The Employment Situation Report for July was strong. Nonfarm payrolls increased by 255,000. Over the past months, job gains have averaged 190,000 per month. June nonfarm payrolls revised to 292,000 from 287,000. The unemployment rate was 4.9% versus 4.9% in June. July average hourly earnings were up 0.3% after being up 0.1% in June. The average workweek was 34.5 hours versus 34.4 hours in June. July manufacturing workweek was unchanged at 40.7 hours and factory overtime was up 0.1 to 3.3 hours. The labor force participation rate was 62.8% versus 62.7% in June. The trade deficit in June widened to $44.5 billion from -$41.0 billion in May. Total outstanding consumer credit increased by $12.3 billion in June after increasing a downwardly revised $18.0 billion in May.
Several market movers reported second quarter 2016 earnings this week. To start, Aetna reported net income of $790.8 million or $2.23 per diluted share compared with $731.8 million or $2.08 per share in 2015. MetLife reported net earnings of $64 million or $0.06 compared with $1.0 billion or $0.92 per share in the same quarter a year ago. Prudential reported net income of $921 million or $2.04 per diluted share compared with $1.4 billion or $3.03 per share last year. American Intl or AIG reported net income of $1.9 billion or $1.68 per diluted share compared with $1.8 billion or $1.32 per share in 2015. Pfizer reported net income of $2.0 billion or $0.64 per diluted share compared with $2.6 billion or $0.56 per share last year. Procter & Gamble reported net earnings of $1.9 billion or $0.71 per diluted share compared with $521 million or $0.17 per share last year. Archer Daniels reported net income of $284 million or $0.48 per diluted share compared with $386 million or $0.62 per share last year.
The Jefferies 12th Annual Industrials Conference will be held August 9-11, 2016 in NYC. The Oppenheimer 19th Annual Technology, Internet and Communications Conference will be held August 9-10, 2016 at The Four Seasons Hotel in Boston, MA. The JPMorgan 2016 Auto Conference will be held August 9-10, 2016 in NYC. The USB Financial Services Conference will be held August 9-10, 2016 at the Four Seasons Hotel in Chicago, IL. The Avondale Partners Healthcare 2016 1x1 Conference will be held August 10, 2016 at the Boston Harbor Hotel. The 2016 Canaccord Genuity 36th Annual Growth Conference will be held August 10-11, 2016 in Boston, MA.
Price Alert: Enzo Biochem, Inc. (NYSE: ENZ), a pioneer in molecular diagnostics, hit a 52-week high this past week on Monday at $7.00.
Enzo closed the week at $6.73.
Volume Alert: Immune Pharmaceuticals, Inc. (Nasdaq: IMNP), a biopharmaceutical company that applies a personalized approach to treating and developing novel, highly-targeted antibody therapeutics to improve the lives of patients with inflammatory diseases and cancer, saw a spike in its volume as it traded over 5,000,000 shares- that’s over three times its three month average daily volume.
Immune closed the week at $0.38.
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. Immune Pharmaceuticals, ten thousand dollars cash per month.