It’s the last day of the trading week. Here’s what you need to know.
Week In Review
The S&P 500 performed strongly as the week began. On Tuesday, it broke above 2,900 and challenged its all-time highs.From there the market has struggled, receding rapidly from 2,900 and trading sideways for most of Wednesday and Thursday.
Going into today’s trading session, the S&P is up 1.69% for the week. Today, futures are predicting a down day in stocks. S&P 500 futures are currently anticipating a 0.3% loss.
The NASDAQ is the driving force behind the recent rally, gaining over 2.9% in the past 5 days. Bg tech names like Apple (AAPL) and Microsoft (MSFT) have lifted the market, and most experts believe the tech sector needs to perform in order to sustain this bull run.
Simply put, the S&P 500 needs the tech sector to help push it along if it’s going to break through 2,950.
Stocks Retreat; Gold Rallies Past $1,350 / Ounce
The Fed futures market is currently pricing in 3 interest rate cuts before the end of the year. In anticipation of the rate cut, there have been big inflows to bonds and gold recently.
Gold climbed above $1,350 an ounce yesterday, its highest price level since April 2018. Treasury yields – which decrease as the price of the bonds increase – declined three basis points, the biggest drop in over a week.
The shift from equities to lower risk assets has been fueled by ongoing trades disputes and economic uncertainty. The market has its heart set on a July rate cut, and fed futures show that traders believe there is a 30% chance that the Fed will cut rates as early next week.
Fiverr Intl. (FVRR)
Fiverr is an Israeli e-commerce company that connects freelancers to customers searching for services. The company completed its IPO on the NASDAQ yesterday and promptly went stratospheric. Shares rallied 90% before the close of the session and are up another 7% in pre-market trading.
Coda Octopus Group (CODA)
Coda Octopus Group produces sonar and other underwater equipment for both government and private contractors. Share prices exploded yesterday after the company posted a surprise beat on its quarterly report. EPS for the quarter came in at $0.18, beating consensus estimates by 5 cents. Last year, the company posted a loss for this same reporting period.
Tableau Software (DATA)
The announcement that Tableau would be acquired by the Cloud King, Salesforce (CRM), sent share prices skyrocketing on Wednesday. Salesforce stated that the Tableau acquisition will help them better analytic tools for its platform.
It was the biggest deal ever for Salesforce and came only one day after cloud competitor Google (GOOGL) announced its deal to buy Looker, another big data firm, as it gears up for a showdown with competitors for the enterprise cloud market.
Restoration Hardware (RH)
Shares of Restoration Hardware have struggled as a result of the U.S.-China trade conflict, but they were showing signs of life yesterday after the company released its FY 2019 Q1 earnings on Wednesday. The company raised full-year forecasts for both revenues & earnings and beat EPS estimates by 32 cents ($1.85 vs. $1.52 est.) Share prices closed the session up 15.83%.
That all sounds great, but the real reason this stock is rallying has to do with trade. The company has been beset by tariff concerns for the past year and change. However, RH eased investor concerns when it announced that it had renegotiated product costs and raised its prices to mitigate the impact of tariffs.
Today’s Economy News
Friday, June 14th:
- Retail Sales [May]……………………………………….7:30a
- Business Inventories [Apr]…………………………….10:00a
- Industrial Production [May]……………………………..9:15a
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