What's moving markets today: May 24, 2019
The US-China trade war has delivered Wall Street a five-week losing streak.
The Dow declined 0.6% this week, marking its fifth straight weekly decline. That’s the longest slump since June 2011. (Fun fact: The Dow's 178.31- point dip this week was oddly similar to last week's 178.37- point loss).
Trade concerns eased a bit on Friday, lifting the Dow 95 points, or 0.4%. The S&P 500 and Nasdaq inched up 0.1% apiece.
US oil prices rose 1.2% to $58.63 a barrel, marking a slight rebound from their worst day since Christmas Eve. Still, oil fell nearly 7% for the week, its worst in five months.
Economists at JPMorgan (JPM) have cut their second-quarter GDP estimates to 1% — down from its previous estimates of 2.25%.
Here's their reasoning, according to a newly released note:
The April durable goods report was bad, particularly the details relating to capital goods orders and shipments. Coming on the heels of last week’s crummy April retail sales report, it suggests second quarter activity growth is sharply downshifting from the first quarter pace."
Uber and Lyft's stocks have had disappointing debuts, to put it mildly:
The high-profile flops demonstrate the need for money-losing companies to do a much better job explaining how they'll eventually make money, according to Carter Mack, president and co-founder of JMP Group, told CNN Business' Matt Egan.
There was so much noise and hype that it was hard for them to live up to," said Mack.
US markets are still up, but they gave up some gains from the open:
The Dow 30 has more stocks in the green than the red.
Boeing (BA) gave up some of its gains after a Bloomberg report said the SEC is investigating whether the company properly disclosed issues with the Boeing 737 Max. A Reuters report earlier said the troubled plane could fly as early as June.
Foot Locker (FL) is still getting clobbered after cutting its guidance. The stock is down 16.5%.
To say that Uber's IPO was a bit of a flop is putting it mildly. Shares fell on their first day of trading -- and at a current level of around $40.50, the stock is still 10% below its offering price.
Now Uber (UBER) will have another chance to convince Wall Street that it's worth all the hype when it reports first quarter results on May 30. Problem is, the numbers may not be pretty.
Sure, Uber is expected to report revenue of more than $3 billion, according to Refinitiv. That's a healthy increase of nearly 18% from a year ago. But analysts are also forecasting a LOSS of more than $1 billion, or $1.33 a share.
That's in line with the guidance that Uber provided to investors just before the IPO -- when the company said it expected sales between $3 billion and $3.1 billion and a loss of $1 billion to $1.1 billion.
Uber is spending a lot to combat rival Lyft (LYFT), which also posted a big loss in the first quarter following its own IPO. Lyft's shares tanked on the news. The stock is now down more than 20% from its offering price.
Chipotle (CMG) is very appetizing to investors. The stock has soared nearly 55% this year, making it the fourth-best performer in the S&P 500.
This year's stock pop also follows a 57% gain last year.
Our Paul R. La Monica notes that the company has "done so well that it's now trading at about $667 — just 12% below the all-time high of about $759 that it hit in August 2015 just before the E. coli outbreak."
So, can anything stop Chipotle? Read Paul's take here.
A top Chinese chipmaker is leaving the New York Stock Exchange.
The move comes amid trade tensions between the United States and China and the latter cracking down on Chinese technology.
The stock fell 5% in early trading.