Rover's Weekly Market Brief - 2/19/2016

February 19, 2016 |

Indices

Dow Jones: 16,391.65 (+2.6%)

NASDAQ: 4,504.43 (+3.8%)

S&P 500: 1,917.78 (+2.8%)

Commodities

Gold: 1,228.50 (+1.6%)

Copper: 208.05 (+2.0%)

Crude Oil: 29.76 (+2.8%)

Economy

Crude Oil rose 9.6% at the start of this week on hopes of a deal to cap production at January levels but lost those gains as Iran declined to
commit. It closed the week at $29.76 per barrel—2.8% up from last week. Commercial crude oil inventories (excluding the Strategic Petroleum
Reserve) increased 0.4% to 504.1 million barrels from 502.0 million the past week. The national average retail regular gasoline price fell 2% to
$1.72 from $1.76 per gallon the preceding week.

The housing market continues to show strength despite a slowdown in January 2016. Privately-owned housing starts were down 3.8% in January from
December estimates but are up 1.8% from January 2015 levels. Private building permits fell 0.2% sequentially but rose 13.5% YoY.
Privately-owned housing completions were 2% above December estimates and are 8.4% above January 2015 levels.

Industrial production rose 0.9% in January after falling 0.7% in December. YoY, it is down 0.7%. The utilities index rose 5.4% because of colder
weather while the manufacturing index rose 0.5% as result of an increase in nondurable and durable goods production. The mining index remained
unchanged following the downturn in commodities. Capacity utilization (an index used to gauge sustainable maximum output) rose 0.7% sequentially
and 1.4% YoY.

Markets

Walmart (NYSE: WMT) announced a revenue drop of 0.7% and a net income fall of 9.2% for fiscal year 2016. Diluted EPS fell 9.5% to $4.57 from $5.05
in 2015. US sales went up 3.6% while Sam’s Club and international sales fell 2.1% and 9.4% respectively. US comparables store sales declined 0.5% in 2016
compared to a decline of 0.1% in 2015.

Express Scripts (NASDAQ: ESRX) reported a marginal revenue increase of 0.9% for 2015. However, net income rose 22.8% as a result of reductions in selling,
general and administrative expenses. Consequently, diluted EPS climbed 34.8% to $3.56 from $2.64 the previous year. Network revenues fell 3.4% whereas service,
home delivery and specialty, and other revenues rose 26.1%, 11.4% and 5.7% respectively.

Priceline (NASDAQ: PCLN) recorded a 9.3% revenue increase and a 5.4% net income surge for fiscal year 2015. Diluted EPS rose 8.3% to $49.45 from $45.67 in 2014.
The revenue growth was driven by agency revenues (up 11.7%) and advertising & other revenues (up 49.5%) but checked by merchant revenues (down 4.7%).

T-Mobile (NASDAQ: TMUS) posted an 8.4% rise in revenue for the fiscal year 2015. Net income rose 196.8% as a result of reductions in losses on the disposal
of spectrum licenses and declines in the cost of goods sold. Consequently, Diluted EPS increased 173.3% to $0.82 from $0.30 the previous year.
Postpaid customer additions were 4.5 million in 2015 compared to 4.9 million in 2014.

Looking Ahead

The following companies will be releasing their earnings results next week.

Monday Tuesday Wednesday Thursday Friday
HSBC (HSBC) Home Depot (HD) Lowe's (LOW) Anheuser-Busch InBev (BUD) Berkshire (BRK.B)
Allergan (AGN) BHP Billiton (BHP) TJX Companies (TJX) Kraft Heinz (KHC) Foot Locker (FL)

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