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US Stock Markets Ended Sept. 6, 2019
Equities traded higher during the Labor Day shortened week. The biggest market mover continues to be US-China trade news. Thursday, it was announced that in-person trade talks would resume in Washington DC in October. This was welcomed news compared to the last few weeks when it appeared both sides were hardening their trade stance by threatening higher tariffs. U.S. economic news also strengthened last week as job numbers, factory orders, durable goods and ISM Non-Manufacturing all beat economist expectations. Overall the S&P 500 is only 1.5% off its all-time high set only 30 trading days ago on July 26th. The Fed also made comments last week hinting that rate changes will continue to support this economic expansion. While earnings season wound down a few weeks ago, there were still a few quarterly announcements last week. DocuSign Inc., the world's largest eSignature solution, soared over 20% last Friday after they announced continued customer growth along with quarterly revenue nearly 7% higher than previous guidance. Lululemon Athletica Inc. closed last week at an all-time high after announcing earnings and revenue well ahead of the Street's estimates and raising revenue and earnings guidance. The athletic apparel giant saw their Chinese sales grow 68% and Men's sales grow of 27% last quarter, while reiterating that only 6% of their products are exposed to tariffs. This was all welcomed news as shares were up over 10% last week. Palo Alto Networks Inc., the global cybersecurity leader, returned 6% last week after announcing earnings and revenue above analyst expectations. Revenue growth clocked in at 22% while they passed $1b in billings for the first time. Looking ahead to next week, tariff news will likely grab headlines and will likely determine the near-term profits in equity markets. This could give those with a longer-term view an entry opportunity into equities if they can stomach the likely near-term volatility.
Monday, September 9, 2019 @ 7:33 AM
These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.