1. U.S. Stock Market:
“Stocks traded mixed as on Friday ahead of the Memorial Day holiday weekend and digested key economic data. The Dow Jones industrial average held near the flatline, with Home Depot contributing the most losses and Goldman Sachs the most gains. The S&P 500 hovered near breakeven and the Nasdaq composite also traded flat.”
“U.S. stocks flipped between small gains and losses on Friday but were on track for weekly gains, as investors struggled to find fresh reasons to push shares to records after a six-session winning streak ahead of a holiday weekend. The Dow Jones Industrial Average DJIA, +0.02% traded within a 42-point range and was last up 2 points at 21,084. The S&P 500 index SPX, +0.03% traded near break-even levels at 2,415, with the real-estate sector the largest decliner and the materials sector the biggest gainer. The Nasdaq Composite Index COMP, +0.06% rose 3 points to 6,208.”
“After both the S&P 500 and Nasdaq Composite hit record highs a day earlier, Wall Street traded lower on Friday despite an upbeat revision to first quarter gross domestic product as traders prepared for a long weekend with U.S. stock markets closed for the Memorial Day holiday. At 10:28AM ET (14:28GMT), the Dow Jones dropped 17 points, or 0.08%, the S&P 500slipped 1 point, or 0.03%, while the Nasdaq Composite gave up 1 point, or 0.02%.”
2. U.S. Bond Market:
“U.S. government debt prices were lower on Friday as investors digested a fresh batch of economic data. The yield on the benchmark 10-year Treasury notes, which moves inversely to price, was higher at around 2.231 percent, while the yield on the 30-year Treasury bond was also higher at 2.897 percent.”
“The U.S. Treasuries gained Friday as investors await the country’s first-quarter gross domestic product (GDP), scheduled to be released later in the day. Further, the slightly higher reading of the initial jobless claims, released late yesterday provided support to safe-haven instruments. The yield on the benchmark 10-year Treasury, which moves inversely to its price, plunged 2 basis points to 2.23 percent, the super-long 30-year bond yields also slumped nearly 2 basis points to 2.90 percent and the yield on short-term 2-year note traded nearly 1-1/2 basis points lower at 1.28 percent by 11:00GMT.”
3. FX Markets:
“The dollar bounced back against other major currencies on Friday, helped by the release of better than expected U.S. economic growth data. EUR/USD fell 0.22% to 1.1186, off session highs of 1.1235. GBP/USD tumbled 0.90% to trade at 1.2825, the lowest since May 26. USD/JPY declined 0.68% to 111.07, while USD/CHF held steady at 0.9729.”
“The US dollar was strengthening ahead of the publication. EUR/USD slipped under 1.12, GBP/USD is around 1.2840, a drop of over 100 pips. USD/JPY stands out and falls to 111. This is a risk off move.”
“Oil prices see-sawed on Friday after OPEC extended cuts in oil production but disappointed investors by not going further, while sterling slid after a poll showed the ruling Conservatives’ lead shrinking two weeks before an election. Brent crude futures were at $50.84 per barrel at 1215 GMT, reversing earlier gains to trade 1.2 percent lower on the day. They were on track to end Friday with a weekly loss of just over 5 percent. U.S. West Texas Intermediate (WTI) crude futures were below $50, at $48.29, down 1.2 percent on the day.”
“Gold Today –New York closed at $1,256.10 yesterday after closing at$1,257.20 Wednesday. London opened at $1,263.10 today. Silver Today –Silver closed at $17.16 yesterday after $17.19 at New York’s close yesterday. LBMA price setting: The LBMA gold price was set today at$1,265.00 from yesterday’s $1,257.10. The gold price in the euro was set at €1,130.37 after yesterday’s €1,120.81.”
“Crude oil prices fluctuated on Friday morning after a slump a day earlier. West Texas Intermediate rose to $48.96 a barrel after sliding below the $50 mark on Thursday amid an extension to a global output pact that disappointed investors looking for more. The Organization of Petroleum Exporting Countries agreed in Vienna on a nine-month extension to a production-cut deal set to expire at the end of June.”
5. Market Movers:
Zoe’s Kitchen Inc (NYSE:ZOES) reported first quarter adjusted EPS of $0.01 after the close Thursday, down from $0.06 a year ago.Zoe’s Kitchen gapped open sharply lower Friday morning and is now down 3.31 at $12.89 with volume at a 3-month high. The stock has been declining for the past 2 weeks and has tumbled to a new low for the year.
Deckers Outdoor Corp (NYSE:DECK) rose more than 15% on Friday after the company reported better-than-expected fiscal fourth-quarter earnings and raised its outlook for full-year results. The maker of UGGs and TeVa footwear rose 11.8% and now says net sales are expected to be up low single digits over the same period last year, and it projects a diluted loss per share of approximately $1.70 to $1.65 a share loss, compared to a $1.89 a share loss a year ago. For the full year the company said net sales are expected to be in the range of down 2% to flat.
Shares of GameStop Corp. (NYSE:GME) tanked in premarket trading Friday, a day after its earnings statement exceeded expectations. The stock was down 8 percent shortly before the opening bell. On Thursday, the company reported 3.8 percent net growth in the first quarter on the back of Nintendo Switch hardware sales and said established store sales increased 2.3 percent, despite Wall Street expectations that GameStop would post a decrease in sales.
When Ulta Beauty Inc. (NASDAQ:ULTA) reported its fiscal first-quarter financial results after the markets closed on Tuesday, the company said that it had $1.91 in earnings per share (EPS) and $1.31 billion in revenue. The consensus estimates had called for $1.79 in EPS and revenue of $1.28 billion. In the same period of last year, the company posted EPS of $1.45 and $1.07 billion in revenue. Comparable sales (sales for stores open at least 14 months and e-commerce sales) increased 14.3%, compared to an increase of 15.2% in the first quarter of fiscal 2016. The most recent comparable sales increase was driven by 8.7% transaction growth and 5.6% growth in average ticket.
Nutanix Inc (NASDAQ:NTNX) reported a third quarter non-GAAP loss of $0.42 after the close Thursday, compared to the loss of $0.33 a year ago. Street expectations were for a loss of $0.45. Nutanix has gapped open sharply higher Friday and is now up 3.16 at $20.73 on above average volume. The stock has climbed to a 3-month high.
Shares of Big Lots, Inc. (NYSE:BIG) were up more than 4 percent in morning trading after the Columbus-based discount and closeout retailer reported record earnings for the first quarter. The earnings — $51.5 million, or $1.15 per share — handily beat the company’s own predictions as well as Wall Street expectations. While comparable-store sales decreased by 0.9 percent and sales decreased to $1.3 billion, CEO David Campisi said he was pleased by the way the retailer had rebounded from a slow start to the quarter in February.
Internet services provider Web.com Group Inc (NASDAQ:WEB) shares were up more than 6% on early Friday afternoon following a Reuters report that the company was in buyout talks with private equity firms. Web.com is reportedly engaged in early-stage talks in response to multiple leveraged buyout approaches. The company has a market cap of $1.1 billion and generated $710.5 million in revenue in 2016 after reporting revenue of $543.5 million in 2015.
Aside from its chip expertise, the company also growing share in areas like solid-state drives, Marvell also has a strong network processing segment. Marvell’s growth potential in areas like the Internet-of-Things, where the company has begun to lay its foundation with recent product launches, is underestimated. Marvell has established an underrated diversified business — one that has caught the attention of potential suitors. With year-to-date gains of almost 25%, Marvell Technology Group Ltd. (NASDAQ:MRVL) is one of the best-performing stocks in the semiconductor industry, besting the 18% gain in the iShares PHLX Semiconductor ETF (NASDAQ:SOXX). And although MRVL is rising more than 2% Friday on better-than-expected earnings results, these shares can still deliver 15% more, reaching $20 by the end of the year.
AmTrust Financial Services Inc (NASDAQ:AFSI) AFSI 13.98% shares climbed 12.8 percent to $14.05 as the company disclosed that it will receive $300 million of common equity capital from private placement.
Ryanair Holdings plc (ADR) (NASDAQ:RYAAY) shares hit an all time high of €17.97 on Friday as investors anticipated that the Irish airline would report a strong performance when it publishes 2017 financial results on next week. Analysts at stockbrokers Goodbody speculated that Ryanair could announce plans to return up to €800 million to investors by buying back shares when it publishes its 2016-2017 results on Tuesday. The airline’s stock surged on the Dublin market, closing 1.73 per cent up at €17.93. Dealers said its price hit an all-time high of €17.97 during Friday’s trade.
What happened: After Veeva Systems Inc (NYSE:VEEV) reported strong fiscal first-quarter 2018 earnings results, shares of the software and cloud computing company, which caters to the life sciences industry, rose as much as 10% in early morning trading on Friday. As of 1:30 p.m., those gains had moderated to a 7.5% increase.
JinkoSolar Holding Co., Ltd. (NYSE:JKS) shares are being hammered on Friday against a double downgrade by Morgan Stanley. The lowered opinion was based on weak prognostication for the company’s first-quarter results. Q1 Net Profit To Be 50 Percent Lower Than Consensus. Analysts Sheng Zhong and Simon Lee see a 52-percent downside from consensus estimates for the first quarter net profit, impacted by lower margin. According to the analysts, the lower margin was the result of lower ASP and slower cost reduction due to a high polysilicon price and higher OEM fees.
United Parcel Service, Inc. (NYSE:UPS) is being hit with a $247 million fine for illegal cigarette shipments. The shipping company was hit with the large fine for sending shipments containing tobacco in New York and NYC. The shipments mostly came from tobacco shops on Indian reserves and weren’t taxed. The court rulings states that United Parcel Service, Inc. has shipped more than 683,000 cartons of untaxed cigarettes since 2010. United Parcel Service, Inc. isn’t happy with the large fine that it is being hit with. The company says that it is much too high for the shipments that only made it $1 million in revenue. The court argues that it doesn’t think modest fines would leave a lasting impact on the company.