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US Markets Fall Friday

U.S. stocks were in the red on Friday, after President Trump's tweet increased trade war concerns. He said that U.S. companies should "immediately start looking for an alternative" to their business operations in China. The Dow Jones Industrial Average fell 1.60% to 25,831, the S&P 500 index declined 1.70% to 2,873 and the Nasdaq Composite Index tumbled 2.02% to 7,829.

Shares of VMware Inc. (NYSE:VMW) fell more than 7% after announcing second-quarter results. The company posted earnings per share of $1.60 and revenue of $2.44 billion, reflecting a 12.4% growth from the comparable trimester of the previous year. The company beat earnings by 5 cents and revenue estimates by $10 million.

The license revenue was $1.01 billion, an increase of 12% from the same quarter of fiscal 2019.

"We are pleased with our strong financial performance in second quarter, which reflected broad-based strength in all three geographies," said Zane Rowe, executive vice president and CFO. "Our cloud strategy and strong Hybrid Cloud and SaaS growth will substantially accelerate, as we bring Pivotal and Carbon Black into the portfolio."

The GAAP operating income was $523 million, an increase of 3% from the second quarter of fiscal 2019. Non-GAAP operating income for the second quarter was $802 million, an increase of 9% from the second quarter of fiscal 2019. Operating cash flow was $699 million, while free cash flow was $611 million.

Moreover, the company will buy Pivotal, a cloud-native platform provider, for a price per share of $11.71, comprised of $15 per share in cash to Pivotal Class-A stockholders, and VMware's Class B-shares exchanged for Pivotal Class-B shares held by Dell Technologies (DELL) at an exchange ratio of 0.0550 shares. The transaction is expected in the second half of fiscal 2020.

During the quarter ended June 30, Ken Fisher (Trades, Portfolio) established a new position in the company with 11,660 shares. On the other hand, Jim Simons (Trades, Portfolio) reduced his holdings by 16% to 3,850,311 shares. John Hussman (Trades, Portfolio) sold out the stock.


o Intuit Inc. (NASDAQ:INTU) +5.3%

o Salesforce.com Inc. (NYSE:CRM) +4.2%

o Newmont Goldcorp Corp. (NYSE:NEM) +3.0%

o Boeing Co. (NYSE:BA) +2.5%

o Darden Restaurants Inc. (NYSE:DRI) +0.4%


o Hasbro Inc. (NASDAQ:HAS) -7.2%

o L Brands Inc. (NYSE:LB) -6.8%

o HP Inc. (NYSE:HPQ) -6.6%

o Hess Corp. (NYSE:HES) -6.0%

o Occidental Petroleum Corp. (NYSE:OXY) -4.0%

Global markets

The main European stock markets traded in the red. The U.K.'s FTSE 100 declined 0.22%, France's CAC 40 dipped 0.85%, Germany's Dax retreated 0.87% and Spain's Ibex 35 fell 0.48%.

In Asia, Japan's Nikkei 225 gained 0.40%, India's BSE Sensex jumped 0.63%, Hong Kong's Hang Seng rose 0.50% and China's Shanghai Composite jumped 0.49%.

Disclosure: The author holds no positions in any stocks mentioned.

Read more here:

US Market Falls Tuesday

Wall Street Rallies Monday

Main Wall Street Indexes Extend Gains Friday

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This article first appeared on GuruFocus.