NEW YORK, May 17, 2019 /PRNewswire/ -- U.S. markets spiraled downwards on Monday after it was reported that China is also planning to raise tariffs against the U.S. China's State Council addressed that on June 1st, China will raise tariffs by as high as 25% on products that are currently taxed between 5% to 10%. China's response was in retaliation to U.S. President Donald Trump's decision to raise the 10% tariff to 25% on certain goods. China is looking to raise tariffs on nearly 5,000 products such as animal products, frozen fruits and vegetables, and seasonings. China is also looking to raise tariffs by 20% for products such as baking condiments, chemicals, and vodka. The tensions between the two nations sent the Dow Jones Industrial Average lower by 707.42 points or 2.7% on Monday. Following Monday, markets began to rebound throughout the week as Trump provided investors with uplifting news after he mentioned that a deal between the U.S. and China could come within the next few weeks. However, Trump then tweeted on Tuesday that, "when the time is right we will make a deal with China." Nonetheless, Trump has suggested that a resolution between the two nations is still possible. On Thursday, the Dow Jones surged by 227 points or 0.89 points during early morning trading sessions. The broad market was driven by stronger-than-expected results from Cisco and Walmart. The S&P 500 jumped by 33.92 points or 1.19% on Thursday, while the Nasdaq Composite rose by 106.26 points or 1.36%. Aurora Cannabis Inc. /zigman2/quotes/210559470/composite ACB +7.82% , Alibaba Group Holding Limited /zigman2/quotes/201948298/composite BABA -1.56% , Cisco Systems, Inc. /zigman2/quotes/209509471/composite CSCO +0.14% , Pinterest, Inc. /zigman2/quotes/211319641/composite PINS -2.93% , NVIDIA Corporation /zigman2/quotes/200467500/composite NVDA 0.00%
The sharp rebound led U.S. markets on track to close higher for the third consecutive day leading into Thursday after a bearish start to the week. While investor fears subsided after Monday, many began to focus on corporate earnings and refreshing economic data results. Strong economic data boosted U.S. Treasury yields and helped the interest rate banking sector rise by 1.30%. The broader financial sector gained 1.4%. Nevertheless despite the optimistic news revolving around earnings and economic data, investors and analysts are still focused on the tensions between the U.S. and China. "There is still the a belief that a trade deal gets done because it's in both parties' best interest," Brent Schutte, Chief Investment Strategist at Northwestern Mutual Wealth Management, told MarketWatch. "The market is giving the benefit of the doubt because it believes the Fed is there to put a bottom in the market," if the trade dispute causes markets to fall to such an extent that it impacts the broader economy, according to MarketWatch.
Aurora Cannabis Inc. /zigman2/quotes/210559470/composite ACB +7.82% reported its third quarter financial results after the market close on Tuesday. The Canadian cannabis company reported larger-than-expected losses which caused its share to slide by 6% during Wednesday's pre-market hours. For the third quarter, Aurora reported earnings loss of CAD 0.16 per share on revenues of CAD 75.2 Million. Analysts estimated earnings loss of CAD 0.05 per share on revenues of USD 67.6 Million. Aurora's gross revenue surged by 367% year-over-year, primarily led by the increased in its consumer base. Aurora's Canadian Consumer market rose by 37%, while its Candian Medical market edged higher by 8% and International Medical market surged by 40%.
Alibaba Group Holding Limited /zigman2/quotes/201948298/composite BABA -1.56% reported its quarterly and full fiscal 2019 financial results before the market open on Wednesday. The Chinese e-commerce giant edged out analysts expectations, sending shares 1.5% higher on Wednesday afternoon. For the quarter, Alibaba reported earnings of RMB 8.57(USD 1.25) per share on revenues of RMB 95.3 Billion (USD 13.6 Billion). Analysts expected earnings of RMB 6.50(USD 0.94) per share on revenues of RMB 91.58 Billion (USD 13.3 Billion). At the end of the quarter, Alibaba reported that annual active customers reached 654 million, an 18% increase year-over-year. Meanwhile, mobile monthly active users reached 721 million, increasing by 22 million year-over-year. Alibaba highlighted that it is committing towards expanding outwards to less developed cities.
Cisco Systems, Inc. /zigman2/quotes/209509471/composite CSCO +0.14% reported its third quarter financial results after the market close on Wednesday. The Company reported better-than-expected quarterly results and provided a stronger guidance, sending shares 5.3% higher the opening bell on Thursday. For the third quarter, Cisco reported earnings of USD 0.78 per share on revenues of USD 12.96 Billion. Analysts expected earnings of USD 0.77 per share on revenues of USD 12.89 Billion. Cisco's net revenue rose by 6% year-over-year, primarily driven by the growth across its business segments. Cisco's product revenue increased by 7% to USD 9.72 Billion, while service revenue rose by 3% year-over-year to USD 3.23 Billion. For the fourth quarter, Cisco is expecting revenue to grow between 4.5% to 6.5% year-over-year. Additionally, the Company expects adjusted earnings between USD 0.80 to USD 0.82 per share. Refinitiv analysts surveyed earnings of USD 0.81 per share on revenues of USD 13.29 Billion, or a 3.5% growth.
Pinterest, Inc. /zigman2/quotes/211319641/composite PINS -2.93% reported its first quarter financial results after the market close on Thursday. The Company reported worse-than-expected earnings losses per share. For the quarter, Pinterest reported an earnings loss of USD 0.32 per share on revenues of USD 201.9 Million. Analysts expected earnings of USD 0.11 per share on revenues of USD 200.6 Million. Net losses for the Company increased by 21% year-over-year. Despite the widening losses, Pinterest saw strength in its user growth and average revenue per user. Globally, monthly active users grew to 291 million, increasing by 22% year-over-year. Global average revenue per user jumped by 26% to USD 0.73. For the rest of the year, Pinterest is expecting total revenue between USD 1.06 Billion to USD 1.08 Billion.
NVIDIA Corporation ( NASDAQ: NVDA) reported its first quarter financial results after the market close on Thursday. Despite declining revenues, Nvidia surpassed analysts' estimates, sending shares 6% higher during extended trading hours. For the quarter, Nvidia reported earnings of USD 0.88 per share on revenue of USD 2.22 Billion. Analysts expected earnings of USD 0.81 per share on revenue of USD 2.20 Billion. Nvidia mentioned that revenue fell by 31% year-over-year compared to revenue of USD 3.20 Billion the same quarter last year. The weakness in revenue was primarily led by the decline within Nvidia's data center and OEM & Other segments. For the next quarter, Nvidia expects revenue to be USD 2.55 Billion, plus or minus 2%.
Subscribe Now! Watch us report LIVE https://www.youtube.com/FinancialBuzzMedia
Follow us on Twitter for real time Financial News Updates: https://twitter.com/financialbuzz
Follow and talk to us on Instagram: https://www.instagram.com/financialbuzz
Facebook Like Us to receive live feeds: https://www.facebook.com/Financialbuzz/
FinancialBuzz.com, a leading financial news informational web portal designed to provide the latest trends in Market News, Investing News, Personal Finance, Politics, Entertainment, in-depth broadcasts on Stock News, Market Analysis and Company Interviews. A pioneer in the financially driven digital space, video production and integration of social media, FinancialBuzz.com creates 100% unique original content. FinancialBuzz.com also provides financial news PR dissemination, branding, marketing and advertising for third parties for corporate news and original content through our unique media platform that includes Newswire Delivery, Digital Advertising, Social Media Relations, Video Production, Broadcasting, and Financial Publications.
For further information:
Copyright (C) 2019 PR Newswire. All rights reserved