Art Hogan’s Week In Review – May 3, 2019

Week in Review

Maybe the sky is not falling. The market ended the week not far from where it started it, even with a two-day “transitory-tantrum” induced 1.6% pull back on Wednesday and Thursday. The S&P 500 closed down 2 points for the week. The Russell 2000 had a good run as the index closed at 1613, a new high and up 3.4% for the week. We had a pile of catalysts to contemplate over the course of the week including 150 S&P 500 companies reporting, an FOMC meeting, and a plethora of economic data that hit a crescendo with the Jobs report. Crude oil was down 3.13% on the week reflecting higher inventory data, and some concerns that Russia might start to increase output. The markets were able to handle an abundance of news and ended the week no worse for the wear.

Highlights for the week:

150 S&P 500 Companies reported 1st quarter earnings this week, bringing the total to 388. Of those, 77% have beat EPS estimates, and 61% have beat sales estimates.

Alphabet fell more than 8% and had its worst day since December 1, 2008 after posting revenue of $36.34 billion in the first quarter, versus $37.33 billion expected. The weaker revenue was driven by the decelerating ad sales growth at Google, and at You Tube specifically. That pull back removed about $70 billion in market cap from the company.

Fed Chairman Powell threw a wet blanket on the rate cut narrative his week by describing in the post meeting presser low inflation as likely “transitory,” not “persistent.”

Beyond Meat, which makes plant-based meat substitutes went public this week to a very warm reception. The company priced its IPO at $25, after the company had set an initial range of $19-$21. The company trades on the Nasdaq under the symbol BYND, and closed the first day of trading up 163%.

The April Nonfarm Payroll report showed that 263k jobs were created in the month, and the unemployment rate ticked down to 3.6%, the lowest level since December of 1969. Both were better than expected.

Amazon rises 3.1% on Friday after Warren Buffett revealed that his Berkshire Hathaway is investing in the online retailer and cloud services behemoth

Earnings for the week of 4-29:

Sysco; Occidental; Hertz; Pioneer; Mylan; Regeneron; EA; Lyft; Match; TripAdvisor; Honda; Toyota; Wendy’s; SeaWorld; Papa John’s; Disney; FOX; Etsy; IAC; Roku; Tapestry; Norwegian; News Corp; Sonos; Zillow; Tapestry; Dropbox; Keurig; GoPro;

 

The views and opinions expressed herein are those of the analyst Arthur Hogan and are current as of this report’s posting date. This commentary is general in nature and should not be construed as investment advice. Opinions are subject to change with market conditions. Neither Art Hogan nor National Securities Corporation is affiliated with the issuers mentioned herein, and no part of this analyst’s compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by the analyst in the report. The views & and strategies may not be suitable for all investors and is are not intended to be relied on for legal or tax advice. Please note that any investment involves risk including loss of principal.