Market Wrap-up for May 1 - The Week in Review

After the closing bell on Monday, Apple Inc (AAPL ) reported its Q2 results, beating analyst estimates with earnings coming in at $2.33 per share and revenue at $58 billion. Analyst estimated AAPL’s EPS at $2.16 on revenue of $56.06 billion. During the quarter, the company sold 61.17 million iPhone units, well above forecasts.

Before Apple’s announcement, equity markets ended lower on Monday, with the Dow slipping 0.2%, the S&P 500 falling 0.4% and Nasdaq sliding 0.6%. Biotechnology stocks were the worst performers on Monday, with the Nasdaq Biotechnology Index shedding 4.1%.

The following companies reported their quarterly results:

• Pfizer (PFE ): PFE reported Q1 earnings of $2.38 billion, or 38 cents per share on revenue of $10.86 billion, a 4% decrease from a year prior.
• Merck (MRK ): Merck managed to beat estimates but reported lower earnings of $953 million, or 33 cents per share and revenue of $9.42 billion, down from $10.26 billion last year.
• Bristol-Myers (BMY ): BMY beat analyst estimates, reporting EPS of 71 cents and revenue of $4.0 billion, a 6% increase from a year prior.
• United Parcel Service (UPS ): UPS reported first quarter earnings of $1.026, or $1.12 per share, beating estimates. Revenue grew 14% to $14 billion, which came below expectations of $14.27 billion.

Also on Tuesday, the Dow managed to gain 0.4% while the Nasdaq Composite slipped 0.1%.

On Wednesday, Mastercard (MA ) reported Q1 EPS of $0.89, beating estimates of $0.80. Revenue came in at $2.23 billion, slightly above the expected $2.28 billion. MA noted that net revenue growth was driven the impact of an increase in cross-border volumes, a 12% increase in gross dollar volume, and an increase in processed transactions of 12%.

In equity markets, all three major indexes closed lower after the Commerce Department showed that the U.S. economy grew only 0.2% in the first quarter, well below expectations and below the 2.2% pace during the last three months of 2014.

On Thursday, the following companies reported:

• Exxon Mobil (XOM ): This oil juggernaut reported earnings of $1.17 per share, beating estimates of $0.83. Earnings, however, dropped 46% from a year prior. Revenue came in at $67.6 billion, beating the estimated $51.2 billion.
• Visa (V ): V reported earnings of $0.63 per share, beating estimates by 1 cent. Revenues came in at $3.4 billion, topping the consensus estimate of $3.34 billion.
• ConocoPhillips (COP ): COP managed to beat earnings estimates, reporting EPS of ($0.18) versus the expected ($0.22).

Equity markets declined sharply on Thursday, after consumer spending showed a smaller-than-expected pickup in March.

The following companies reported before today’s opening bell:

• Chevron (CVX ): CVX reported earnings of $1.37 per share, beating analyst estimates by $0.79. Revenue came in at $32 billion, topping expectations of $24.4 billion.
• CVS Health Corporation (CVS ): CVS reported earnings of $1.14 per share, beating estimates by 6 cents. Revenue was reported at $36.3 billion, above the consensus estimate of $35.93 billion.
• Duke Energy (DUK ): Duke Energy reported EPS of $1.24, beating estimates of $1.14. Revenue came in at $5.72 billion, below analyst estimates of $6.3 billion.

Next week, earnings season will continue with results from Dominion Resources (D ), The Walt Disney Company (DIS ), Emerson Electric (EMR ), and GlaxoSmithKline (GSK ).

In economic news, we will see ISM Non-Manufacturing,and US Trade Balance reported on Tuesday, ADP non-farm employment chair on Wednesday, unemployment claims on Thursday, and non-farm employment change and the unemployment rate on Friday. Fed Chair Janet Yellen will also be in the news next week, as she is due to speak at the Institute for Economic Thinking conference on Finance and Society on Wednesday.

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