NEW YORK, June 7, 2019 /PRNewswire/ -- U.S. markets experienced a stronger week after its poor performance last week. Markets weakened last week due to the ongoing trade tensions between the U.S. and China. Amid the tensions with China, U.S. President Donald Trump began to target Mexico with tariffs citing concerns over immigration issues. However, despite the ongoing global conflicts, U.S. markets remained relatively flat on Monday as investor fears over trade wars began to subside. On Tuesday, markets skyrocketed following the Federal Reserve's hint at a possible cut. Federal Reserve Chairman Jerome Powell said that the central bank was closely monitoring the trade tensions and that it would "act as appropriate" to sustain the expansion. However, Powell did mention that there are signs of easing trade tensions and as a result, it could be a gateway to a potential rate cut if the economy continues to slow down. Mexican Foreign Minister Marcelo Ebrard helped ease investors' fears after he said on Wednesday that Mexico can likely reach a deal with the U.S. Powell's comments implied that the Feds might look into lower benchmark interest rates, which stand at a range between 2.25% and 2.5%, and would reduce borrowing costs for corporations and ignite fresh enthusiasm for buying equities, according to MarketWatch. The Dow Jones Industrial Average surged by over 500 points following Powell's announcement. The Dow Jones continued to gain throughout Wednesday as investors' hopes for rate cuts continues to grow. Additionally, on Wednesday, White House Trade Advisor told CNN that he believed that the tariffs on Mexico may not have to go into effect now that the U.S. has Mexico's attention. Meanwhile, China announced that it cut off rare-earth supplies to the U.S. in retaliation to the U.S.' tariff hike. The Dow Jones continued its rally on Thursday after a Bloomberg News reported that the U.S. was considering delaying the tariffs on Mexico, gaining 203 points or 0.8%. Cloudera, Inc. (NYSE: CLDR), Stitch Fix, Inc. (NASDAQ: SFIX), Ciena Corporation (NYSE: CIEN), Beyond Meat, Inc. (NASDAQ: BYND), DocuSign, Inc. (NASDAQ: DOCU)
The Dow Jones Industrial Average gained as much as 768 points or 3% leading into mid-day on Thursday. The S&P 500 rose by 77.06 points or 2.7%, while the Nasdaq Composite increased by 134.34 points or 1.8%. Corporate earnings also played a large role in the broad market this week as companies such as Box, Salesforce.com, Stitch Fix, Cloudera, Beyond Meat, and Zoom Video Communications weighed into the market. Moving forward, investors and analysts will continue to pay close attention to the trade war tensions between the U.S., China, and Mexico. "We've rebounded from oversold levels, and now the market is grappling with the two-day rally while focused on ongoing trade talks," Paul Brigandi, Co-Head of Portfolio Management and Head of Trading at Direxion, told MarketWatch. "Investors are going to remain cautious until there's some resolution on trade," he added. Those fears, however, "are being kind of balanced by a more dovish stance from the ECB today and the Fed earlier this week."
Cloudera, Inc. (NYSE: CLDR) reported its first quarter financial results after the market close on Wednesday. The cloud service provider beat earnings expectations, however, the Company also announced the departure of its Chief Executive Officer Tom Reilly. Cloudera shares fell as much as 39% at the opening bell on Thursday. For the first quarter, Cloudera reported earnings loss of USD 0.13 per share on revenues of USD 187.47 Million. Analysts expected earnings loss of USD 0.23 per share on revenues of USD 188.4 Million. Reilly took on the position of Chief Executive Officer back in 2013. Cloudera announced that Martin Cole, Chairman of the Board, will become interim Chief Executive Officer effective on July 31st. Cole has served as a director on the board since 2017 and has been Chairman of the board since 2018.
Stitch Fix, Inc. (NASDAQ: SFIX) reported its third quarter financial results after the market close on Wednesday. The Company smashed analysts' estimates, which sent shares rallying by as much as 27%. For the quarter, Stitch Fix reported earnings of USD 0.07 per share on revenue of USD 408.9 Million. Analysts expected earnings loss of USD 0.03 per share on revenue of USD 394.9 Million. Revenue rose by 29% year-over-year, largely due to the Company's increase in active clients. At the end of the quarter, Stitch Fix reported 3.1 million active clients, an increase of 17% year-over-year.
Ciena Corporation (NYSE: CIEN) reported its second quarter financial results before the market open on Thursday. The Company reported that earnings doubled year-over-year and also topped estimates, sending shares 25%. For the quarter, Ciena reported earnings of USD 0.48 per share on revenues of USD 865 Million. Analysts expected earnings of USD 0.41 per share on revenues of USD 819 Million. Ciena's revenue and earnings both grew substantially year-over-year. Revenues increased by 18.5% year-over-year, while earnings more than doubled from USD 0.23 per share a year ago. The stronger quarter was primarily led by stronger sales in Ciena's networking platforms, which reported total revenue of USD 697 Million compared to USD 591.7 Million a year ago.
Beyond Meat, Inc. (NASDAQ: BYND) reported its first financial results since launching its initial public offering in early May. Beyond Meat exceed analysts' revenue estimates, which sent shares soaring by 25% higher during Thursday's extended hours. For the quarter, Beyond Meat reported earnings loss of USD 0.14 per share on revenue of USD 40.2 Million. Analysts expected revenues of USD 38.92 Million. The Company reported that revenue grew by 215% year-over-year, largely due to its 304.4% growth in its Fresh platform. Retail revenue grew by 110.8% to USD 19.57 Million, while Restaurant and Foodservice revenue rose by 491.4% to USD 20.62 Million.
DocuSign, Inc. (NASDAQ: DOCU) reported its first quarter financial results after the market close on Thursday. Following the financial release, DocuSign shares plunged by 16%. For the first quarter, DocuSign reported earnings of USD 0.07 per share on revenue of USD 214 Million. The Company reported growth in both its earnings and revenue year-over-year. DocuSign's earnings increase from USD 0.01 in the same quarter a year prior, while revenue increased by 37% year-over-year. DocuSign's strong revenue growth was driven by its 36% increase in subscription revenue and a 64% increase in its professional services and other revenue.
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