​This Week in Emerging Growth: That's It, You Tell That Baby What's What

Joel Anderson  |

It was a rough week for Donald Trump, as the conflict with the parents of Captain Humayun Khan proved to be just one of multiple scandals that reportedly had prominent Republicans scrambling to plan an intervention with his sagging campaign. Markets, meanwhile, stayed mostly level as dreary numbers for Q2 GDP growth from last week were counterbalanced by a sterling July jobs report and improved consumer spending.

Major News Recap:

  • After a fierce battle for supremacy over the Chinese taxi market, ride-sharing app Uber opted to take the easy route and sold its Chinese business to its primary local competitor, Didi Chuxing. Uber’s IPO had apparently been held up by its losses in China (reportedly $2 billion over three years), and it’s getting a 5.89% stake in the new combined company, which has been valued at over $35 billion.
  • It was a busy week for economic data. After last Friday brought news that GDP growth in Q2 was a tepid 1.2%, less than half analyst expectations, this Friday brought a jobs report that showed over 250,000 new jobs and an upward revision of May and June to include 18,000 more jobs than previously reported. Meanwhile, consumer spending was up 0.4% in June after similar gains in May. It wasn’t all good news, though, as July’s auto sales were down sharply.
  • The Fed dinged Goldman Sachs (GS) for using confidential information about Federal Reserve decisions garnered from illegally obtained documents. Though, at $36.3 million, it’s not exactly the sort of fine you can expect to really have the bank reeling.
  • It was a big week for Tesla (TSLA) as SolarCity (SCTY) approved the all-stock deal to be acquired by the auto giant, and the company reported a wider-than-expected loss in its Q2 earnings. That said, they also reported they were on track for delivery of 50,000 vehicles in the second half of the year, limiting stock losses for the week to just over 2%.
  • Time Warner (TWX) reported that it had acquired a 10% stake in television streaming platform Hulu, with Comcast (CMCSA), Disney (DIS), and 21st Century Fox (FOX) each reducing their ownership from a third each to make room. The deal will mean that Hulu will now be streaming channels from the Time Warner empire, including CNN, TBS, TNT, and Cartoon Network.
  • The Bank of England trimmed a key interest rate to historic lows in an effort to stimulate the economy out of its post-Brexit slump. It also boosted its spending on Quantitative Easing by £60 billion to a total of £435 billion.
  • In what could be another major blow to Obamacare, major insurer Aetna (AET) announced it was considering leaving the public exchanges after suffering losses in excess of $300 million on the plans it sold there.

The Week’s Market Action

S&P 500: +8.76 or 0.4% to 2,182.87

Nasdaq: +58.99 or 1.14% to 5,221.12

Top-performing Stocks:

Top Performers

Company

Gain

Bottom Performers

Company

Loss

Mega-Cap

Apple (AAPL)

$3.27 or 3.14% to $107.48

Mega-Cap

Verizon (VZ)

$1.77 or 3.19% to $53.64

Large-Cap

Ball Corporation (BLL)

$8.47 or 11.98% to $79.15

Large-Cap

Liberty Interactive Corp. (QVCA)

$6.20 or 23.13% to $20.61

Mid-Cap

Avon Products (AVP)

$1.01 or 24.94% to $5.10

Mid-Cap

Inovalon Holdings (INOV)

$4.02 or 21.59% to $14.60

Emerging Growth Company News

Earnings season has been unkind to several companies, but on the whole it was a solid week for small caps. The Russell 2000 fell on Monday and Tuesday, but it’s been roaring back since, gaining 2.38% since the opening bell on Wednesday.

Russell 2000 Performance: +11.11 or 0.91% to 1,231.30

Emerging Growth Stock Performance:

Top Performers

Company

Gain

Bottom Performers

Company

Loss

Small-Cap

Advaxis (ADXS)

$5.92 or 70.98% to $14.26

Small-Cap

Keryx Biopharmaceuticals (KERX)

$2.87 or 38.99% to $4.49

Micro-Cap

Seanergy Maritime Holdings (SHIP)

$2.39 or 86.59% to $5.15

Micro-Cap

VirnetX Holdings (VHC)

$1.95 or 45.03% to $2.39

Deals Recap:

Emerging Growth News

Top Reads of the Week

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
VHC VirnetX Holding Corp 7.01 -0.18 -2.50 483,565
INOV Inovalon Holdings Inc. 14.54 -0.30 -2.02 216,258 Trade
CRM Salesforce.com Inc 156.75 -1.23 -0.78 5,197,579 Trade
TSLA Tesla Inc. 258.18 4.64 1.83 7,004,114 Trade
GNW Genworth Financial Inc 3.76 0.07 1.90 2,750,882 Trade
AVP Avon Products Inc. 3.97 0.02 0.51 5,362,990 Trade
TSL Trina Solar Limited Sponsored ADR (Cayman Islands) n/a n/a n/a 0 Trade
GS Goldman Sachs Group Inc. (The) 213.52 -1.00 -0.47 1,813,497 Trade
BLL Ball Corporation 70.70 -0.20 -0.28 2,054,188 Trade
VZ Verizon Communications Inc. 56.59 -0.62 -1.08 12,199,587 Trade
OCUL Ocular Therapeutix Inc. 4.56 -0.30 -6.17 951,375 Trade
ADXS Advaxis Inc. 1.27 0.04 3.25 204,930 Trade
RUBI The Rubicon Project Inc. 7.18 0.07 0.98 500,181 Trade
SCTY SolarCity Corporation n/a n/a n/a 0 Trade
QVCA QRTEA Liberty Media Corp. Series A n/a n/a n/a n/a
AMGN Amgen Inc. 178.39 -1.15 -0.64 2,985,617 Trade
CRAY Cray Inc 34.55 -0.08 -0.23 660,870 Trade
SHIP Seanergy Maritime Holdings Corp 0.64 -0.03 -4.78 518,791 Trade
CMCSA Comcast Corporation Class A Common Stock 44.06 -0.50 -1.12 18,351,398 Trade
CIE Cobalt International Energy Inc. COBALT INTERNATIO n/a n/a n/a n/a
AAPL Apple Inc. 202.59 -3.07 -1.49 20,689,697 Trade
DIS The Walt Disney Company 139.85 -1.78 -1.26 6,089,692 Trade

Comments

Watchlist

Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     

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