Friday's Market Recap - Uber IPO Disappoints By Opening And Closing Below It's IPO Price.
What is The Premarket Telling Us?
7:00 AM.
US stocks futures are flat to lower at this hour, as investors sit on their hands, and worry about new tariffs, placed on goods from China, last night, and even as US and China continue their negotiations today. Uber, the giant ride sharing company, goes public today. Shares were priced yesterday evening, at $45.00/share, conservatively, at the lower end of the range.
On The Bond Desk:
The US 10 Year Bond Yield at 2.45%, mostly unchanged.
Currency Desk:
Euro dollar: 1.12
UK Pound: 1.30
Crude Oil:
WTI crude oil futures at $61.67/barrel.
On the Earnings Calendar:
None
In M&A News:
Uber IPO goes public today. Shares were price last evening at $45.00 per share. The lower end of the range. A more conservative approach, perhaps due to the poor performance of the Lyft IPO a few weeks ago.
What About The Asian And European Markets?
Major Asian markets were mostly higher. Japan (Nikkei 225) fell 0.27%, Shanghai gained 3.10%, Hong Kong (Hang Seng) gained 0.84%.
Major European markets mixed to mostly higher. German (DAX) up 0.72%, France CAC 40 rose 0.27%, London FTSE 100 fell 0.06%
Market And Sector Dynamics
Markets opened the trading day decidedly lower. The Dow fell 80 points, Nasdaq fell 25 points, and the S&P was down 8 points. Stocks are under pressure this morning as the US has initiated new tariffs on more goods, imported from China, and the expectation that China will retaliate. Shares of UBER will begin trading as a public company today, in what must be a tough day to be going public. WTI crude oil is up modestly, at $61.61/barrel, up 0.18%.
UBER first trade went off at around 11:50 AM, at $42/share, $3.00 below its official IPO price of $45.00, disappointing investors, as investor, and potential investors worry about the company's has not detailed a pathway to profitability.
Markets turned around intraday despite breakdown in trade talks with China, on comments from the President, that a deal is still possible. Communication Services, Industrials, and Basic Materials trended higher.
Factors Influencing Today's Markets
Market tone mostly negative as the Administration added a new round of tariffs on additional China goods.
UBER went public today. Shares of the company opened below the $45/share IPO price, at $42 even, disappointing investors.
US 10 year bond yield has ticked lower, as investors growth estimates are revised lower reflecting the effects of tariffs on global economic growth.
Apri CPI came in a bit softer than expected at 0.3% vs 0.4% consensus estimates.
WTI crude oil prices closed at mildly lower at $61.66/barrel, down 0.06%.
This week's Baker Hughes Oil Rig Count fell 2 rigs to 805 total.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading on today, the Dow rose 114.01 points, Nasdaq rose 6.35 points, the S&P rose 10.68 points. Total NYSE volume traded, a light 3.51 billion shares. Advancing shares outpaced Declining shares roughly 2:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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