Flat Week for the Markets Ends with Big Friday Losses

Trading this week was mixed, but it ended on a big down note as markets across the world plummeted on Friday. The Dow had closed above 18k every day, with the exception of the end of the week. It opened Monday at 18,052.32 and closed on Friday at 17,826.30 for a -226.02 loss on the week. The NASDAQ and S&P 500 performed similarly, with a steady week and big Friday drop. The NASDAQ opened the week at 5,001.55 and closed on Friday at 4,931.81 for a 5-day loss of -69.74. The S&P 500 opened on Monday at 2,102.03 and closed the week down to 2,081.17 for a point loss of -20.86 this week.

In overseas trading, the dominant trends were a stagnant Europe and growing Asia.
Germany's DAX was down 4 days out of 5, and capped off the week with a big -310.16 point loss to close at 11,688.70. London's FTSE saw a similar pattern, losing 1.34% in a mixed week of trading. Japan's Nikkei did struggle, but the only large losses came on Friday along with the rest of the world markets. The Hang Seng in Hong Kong finally saw its booming growth stall out this week, although it still posted 1.40% gains over 5 days.

Netflix Clearly Wins The Week Thanks To Great Fundamentals.  Arguably this week's biggest success story was Netflix (NFLX), which posted higher than expected Q1 gains to both revenues and subscribers. Its surge came on Thursday and held firm even during Friday's downturn, posting 25% gains over 5 days. Netflix's latest big gains moved share prices up from below $480 to $571.55 per share.

Forcefield Energy's Dishonest Practices Make It The Week's Big Loser.  It looks like the SEC's lasers are set to penetrate Forcefield Energy (FNRG) in one of the nerdiest metaphors I have ever seen published. The company is accused of a list of things, including not disclosing its advertisers, deceptive business practices, and even outright fraud.

While the lawyers on both sides are just getting started with this investigation, the news has already had a huge impact on share prices. Forcefield Energy's (FNRG) stock fell 50% this week, as its investors abandoned ship in droves. Forcefield opened the week above $7.20 per share and ended the day Friday at $3.97.

Etsy's IPO Goes Live.  Online marketplace Etsy (ETSY) could not have picked worse market conditions to debut on the NASDAQ, going live on Thursday right before Friday's downturn. Still, the stock managed to hold its ground, and even make gains over and above the initial offering price of $16 per share. By the end of the day on Thursday, Etsy stock was up to $30 per share, before premarket trading and a tough Friday lead the stock to close the week at $27.58.

Etsy (ETSY) has used $300,000 of the money that the IPO has raised in order to establish a non-profit, in the hopes of maintaining its status as a B-corp company. Under B-corp certification rules, the company has to concern itself with social, environmental, and other public benefits. Since Etsy has never made a profit, being able to hold onto its B-corp status -- and the tax breaks that come with it -- is crucial to Etsy's share price in the mid-term.

Chinese Online Marketplace 58.com Up 30% On The Week.  China's answer to eBay, 58.com (WUBA), saw share prices surge this week as the Asian recovery continued full-throttle. The company, with its $6 billion market capitalization and large base of users, is poised to become one of the places that investors look to judge the strength of the Chinese consumer economy -- which has historically been a very tricky thing for analysts to do.

58.com (WUBA) grew by over 30% this week, opening at $55 on Monday and growing an additional 4.34% on Friday to close the week at $70.50 per share. 58.com share prices shot up after it acquired a significant stake in a holding company for Ganji.com, a Chinese local services marketplace similar to Craigslist.
Published on Apr 17, 2015
By Aaron Phillips
Aaron Phillips is a financial researcher and journalist based out of Michigan. He regularly writes the IG Daily and IG Weekly columns.

Copyrighted 2020. Content published with author's permission.

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