NEW YORK, November 9, 2018 /PRNewswire/ --
U.S. stocks had a strong week, lifted by the positive midterm election results and stronger than expected earnings. The midterm election results allowed Democrats to take control of the House, dividing the Congress. Shortly after, U.S. Attorney General Jeff Sessions resigned at the request of President Donald Trump. According to MarketWatch, the election results undercut hopes for further corporate tax cuts, but analysts said a potential brake on further fiscal stimulus was viewed as a positive for equities and bonds. Following Jeff Sessions' resignation, cannabis stocks surged intraday on Wednesday. Tilray led the charge, as its shares rose by over 30% before the closing bell. The Alternative Harvest ETF rose by 7%, while the Horizons Marijuana Life Science ETF jumped by 8%. Stronger earnings were reported by Booking Holdings. Etsy and Twilio also continued to drive the market early on in the week. The Dow Jones surged nearly over 1,000 points, or 3.8% since Monday morning. Meanwhile, the S&P 500 Index rose by 3.38% and the Nasdaq Composite jumped by 3.1%. Booking Holdings Inc. (NASDAQ: BKNG), Etsy, Inc. (NASDAQ: ETSY), Twilio Inc. (NYSE: TWLO), Roku, Inc. (NASDAQ: ROKU), TripAdvisor, Inc. (NASDAQ: TRIP)
According to MarketWatch, Dec Mullarkey, Managing Director, Investment Strategy, Sun Life Investment Management, wrote in a research note: "As President Trump plans his 2020 reelection campaign, a gridlocked Congress is unlikely to deliver any notable wins to help expand his agenda. Therefore, Trump will likely focus on his broad executive powers to affect trade and national security. The obvious targets are China on trade and Iran with its nuclear program. While both issues demand detailed strategic solutions, Trump's transactional style so far has been to ramp up pressure ahead of negotiations."
Booking Holdings Inc. (NASDAQ: BKNG) reported its third quarter financial results after the market closed on Monday. The Company topped estimates in revenues, but missed earnings. Despite the lower than expected earnings results, Booking Holdings' shares jumped by 7%, breaking the USD 2,000 threshold. For the third quarter, Booking Holdings reported revenues of USD 4.84 Billion, increasing 11% year over year and topping analysts' estimates of USD 4.8 Billion. The Company reported earnings per share of USD 37.78, increasing 7% year over year, but missing estimates of USD 38.21.
Etsy Inc. (NASDAQ: ETSY) reported its third quarter financial results, topping its estimates. Shares rose by 10% after the release. For the third quarter, Etsy reported revenue of USD 150.36 Million, increasing 41.3% year over year and topping estimates of USD 149.9 Million. The Company reported an earnings per share of USD 21 cents, topping estimates of USD 7 cents. Etsy reported a decline in its net income, as it fell by 22.9% year over year. Despite the decline, Etsy still saw its active sellers increase by 8% and active buyers increase by 17.2% year over year.
Twilio Inc. (NYSE: TWLO) reported its third quarter financial results after market close on Tuesday. Twilio beat estimates as well as providing a revised guidance, sending shares surging over 30%. For the third quarter, Twilio reported revenue of USD 168.9 Million, increasing 68% year over year and topping estimates of USD 150.4 Million. The Company reported earnings per share of USD 7 cents, compared to an earnings per share loss of USD 8 cents last year, and surpassing estimates of USD 2 cents per share. During the conference call, Twilio's Chief Financial Officer Lee Kirkpatrick said that the Company will not disclose revenue figures, excluding Uber.
Roku, Inc. (NASDAQ: ROKU) reported its third quarter financial results after the market closed on Wednesday. Despite topping estimates in both revenue and earnings, shares plunged by over 18%. For the quarter, Roku reported revenue of USD 173.4 Million, topping estimates of USD 169.1 Million. The Company reported an earnings per share loss of 9 cents, lower than estimates of a loss of USD 12 cents. Active accounts outpaced estimates, reporting 23.8 million. Although active accounts were stronger than expected, average revenue per user missed estimates, coming in at USD 17.34 per user while estimates called for USD 17.44.
TripAdvisor, Inc. (NASDAQ: TRIP) reported its third quarter financial results after the closing bell on Wednesday and surpassed analysts' estimates, sending shares surging by 15%. TripAdvisor reported revenue of USD 458 Million, increasing 4% year over year but missing estimates of USD 469.1 Million. The Company reported earnings per share of USD 0.72 cents, increasing 100% year over year and crushing estimates of USD 0.24 cents. The stronger-than-expected results were driven its Non-Hotel revenue, which increased by 20% year over year.
For our video recap on the Midterm Election, please visit: https://www.youtube.com/watch?v=EMRIjU2bk30&t=1s
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: