IPOs are back in full swing after the biggest week for public listings year-to-date in this coronavirus era. Oil slipped on Monday after Saudi Arabia said an extension of output cuts by OPEC+ nations would not include extra voluntary cuts by a trio of Gulf producers. Brent crude was down 14 cents, or 0.3%, at $42.16 per barrel, by 1210 GMT, while U.S. West Texas Intermediate (WTI) crude fell 41 cents, or 1% New! The Kraken Daily Market Report has been expanded. Read through the full report to see all the new information and analysis. Overview Total trading volume relatively high for a Sunday at $151 million as Ethereum and Bitcoin prices were up, down, and then back up within 2%. Gnosis (GNO) and NANO continued strong runs, both posting 5.2% returns against USD. The best returns were with Tron (TRX), which had 6.7% returns against USD. Ethereum/Bitcoin (ETH/XBT) was very stable today with a high of 0.02515 and a low of 0.02476. June 07, 2020 $150.7M traded across all markets today Crypto, EUR, USD, JPY, CAD, GBP, CHF XBT $9755.1 ↑0.9% $96.0METH $244.82 ↑1.2% $30.3MUSDT $1.0003 ↑0.05% $7.13MBCH $253.79 ↑0.26% $4.95MADA $0.0866 ↑0.5% $3.6MXRP $0.2032 ↓0.19% $2.59MXTZ $2.8882 ↓1.3% $2.15MLTC $46.645 ↓0.21% $1.03MLINK $4.3493 ↓0.08% $944KXLM $0.0788 ↓0.9% $806KUSDC $1.0001 ↑0.02% $799KXMR $66.525 ↓1.6% $763KNANO $1.0603 ↑5.2% $643KETC $6.8414 ↓0.4% $514KEOS $2.8122 ↑0.5% $347KBAT $0.2346 ↓0.9% $344KTRX $0.0181 ↑6.7% $317KATOM $3.0234 ↓1.1% $228KDASH $78.020 ↓0.31% $201KZEC $52.270 ↓1.0% $189KDAI $1.0024 ↓0.1% $189KGNO $32.280 ↑5.2% $181KALGO $0.2320 ↓2.3% $161KPAXG $1686.0 ↑0.12% $130KSC $0.0026 ↓2.4% $123KOMG $1.6949 ↓0.8% $113KICX $0.3359 ↓0.31% $104KLSK $1.3116 ↓1.2% $99.1KREP $14.585 ↑2.4% $96.7KQTUM $1.8077 ↓2.2% $65.6KOXT $0.1966 ↓1.2% $65.1KWAVES $1.1441 ↓0.25% $63.6KXDG $0.0026 ↑0.7% $39.4KMLN $4.0710 ↑1.1% $14.3K A conversation on the latest market-moving news. Stocks jumped on Monday, building on the previous week’s sharp gains on optimism over the economy reopening.
IPOs are back in full swing after the biggest week for public listings year-to-date in this coronavirus era.
Warner Music Group (WMG) last week raised $1.9 billion during its debut, making it the biggest IPO of the year, while ZoomInfo (ZI), a cloud based platform for sales and marketing teams, raised almost $1 billion. Shares of ZoomInfo closed over 60% higher on its first day of trading.
Shift4 Payments (FOUR) also received a solid welcome on the public markets last week. The company, which processes payments for over 200,000 businesses, priced its IPO above its range, at $23 a share. Shares soared 45% on Friday.
Shift4’s founder and CEO Jared Isaacman told Yahoo Finance his company’s roadshow was postponed back in March due to COVID-19. But his company saw encouraging signs in the economy, with “a recovery happening” over the last several weeks.
“We have tons of data, and we started to see the recovery really in late March and through April, and then really accelerate in May,” said Isaacman. “That’s what gave us the confidence to kind of reignite the IPO process and get it going.”
“There was a time when there was no commerce going on outside supermarkets, Netflix (NFLX), or Amazon (AMZN),” said Isaacman.
He says during the darkest periods of declines amid the pandemic, payment volumes dropped 70-75% in late March.
“But right now we’re seeing a 120% recovery from that period. That sure looks like a V-recovery to us,” he said.
“There are several states around the country that have cities that have reached pre-Covid processing levels, which is just a really encouraging sign for everybody else as we move forward,” he added.
Isaacman wasn’t shocked by the May jobs report, which showed the economy added 2.5 million jobs, instead of shedding jobs as economists had expected.
“We weren’t surprised … because it certainly coincides with what we’ve been seeing in the numbers for the last few weeks,” he added.
IMAGE DISTRIBUTED FOR THE NEW YORK STOCK EXCHANGE – The New York Stock Exchange welcomes Shift4 Payments, Inc. (NYSE: FOUR) in celebration of its IP on Friday, June 5, 2020, in New York. (New York Stock Exchange via AP Images)
The recent IPOs come amid the biggest 50-day market rally in history following the March 23rd lows. Investors appear to have a renewed appetite for listings after the IPO market fizzled out last year following the WeWork debacle.
Another batch of companies are set to go public this week, including used-car marketplace Vroom. The company aims to sell 18.75 million shares when it debuts on the Nasdaq under the ticker “VRM,” and currently expects to price shares between $15-$17.
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Oil prices slip despite OPEC+ cuts as Gulf ends voluntary curbs
By Noah Browning
LONDON (Reuters) – Oil slipped on Monday after Saudi Arabia said an extension of output cuts by OPEC+ nations would not include extra voluntary cuts by a trio of Gulf producers.
Brent crude was down 14 cents, or 0.3%, at $42.16 per barrel, by 1210 GMT, while U.S. West Texas Intermediate (WTI) crude fell 41 cents, or 1%, to $39.14 a barrel.
The Organization of Petroleum Exporting Countries, Russia and other producers – a group known as OPEC+ – agreed in April to cut supply by 9.7 million barrels per day (bpd) in May and June. They agreed on Saturday to sustain those cuts through July.
Following the extension, top exporter Saudi Arabia hiked its monthly crude prices for July.
But Saudi energy minister Prince Abdulaziz bin Salman told a news conference on Monday that the kingdom and Gulf allies Kuwait and United Arab Emirates would not cut by an extra 1.18 million bpd in July as they are doing this month.
Those cuts were in addition to the 9.7 million bpd OPEC+ plan.
Low prices have prompted Chinese buyers to boost imports. Purchases by the world’s largest crude importer hit an all-time high of 11.3 million bpd in May.
But consultancy JBC Energy warned higher prices could discourage buying and undercut a fragile recovery in demand.
“We cannot shake the feeling that, price-wise, this market has gotten a bit ahead of itself and will need a good confluence of bullish surprises to continue in order to maintain current pricing levels,” JBC said in note.
(Additional reporting by Florence Tan; Editing by Kenneth Maxwell and Louise Heavens)
Author: Noah Browning
Kraken Daily Market Report for June 7 2020
New! The Kraken Daily Market Report has been expanded. Read through the full report to see all the new information and analysis.
The figures below break down the trading volume of the largest, mid-size, and smallest assets. Cryptos are in purple, fiats are in blue. For each asset, the chart contains the daily trading volume in USD, and the percentage of the total trading volume. The percentages for fiats and cryptos are treated separately, so that they both add up to 100%.
Spread percentage is the width of the bid/ask spread divided by the bid/ask midpoint. The values are generated by taking the median spread percentage over each minute, then the average of the medians over the day.
Stock market live updates: Dow up 150, Druckenmiller ‘humbled’ by comeback, S&P down 1% this year
People walk by the New York Stock Exchange (NYSE) on May 18, 2020 in New York City.
Spencer Platt | Getty Images
Stocks started the week on a high note as the major averages sought to build on last week’s gains. The Dow Jones Industrial Average and S&P 500 remained in the green during morning trading, although the Nasdaq Composite dipped into negative territory as investors rotated into names sensitive to the economy’s reopening. The tech-heavy index rose to a new all-time intraday high on Friday, becoming the first of the major indexes to wipe out its Covid-19 losses.
This is a live blog. Here’s the latest:
Bank of America raised its year-end target for the S&P 500 after the rally left the old one in the dust. The new target of 2,900 is still well below where the index currently trades, but the bank’s top equity strategist did issue a mea culpa for missing the earlier rally and said liquidity from the Fed had fueled the gains for large tech stocks. “Central Bank liquidity has propped up the scarce resource: growth stocks,” the note said. —Pound
- RBC raised its price target on Amazon to $3,300 from $2,700.
- Seaport initiated Boeing at buy.
- Barclays initiated Moderna as overweight.
- Atlantic Equities downgraded American Express to neutral from overweight.
- JPMorgan upgraded Michaels to overweight from neutral.
- KeyBanc upgraded Dunkin’ Brands to overweight from sector weight.
- Wells Fargo downgraded G-III Apparel and PVH to equal weight from overweight.
- Needham upgraded Zillow to buy from hold.
- Bank of America upgraded JetBlue to neutral from underperform.
Stocks rallied out of the gate on Monday, as the major averages looked to extend last week’s gains. The Dow rose 153 points for a gain of 0.6%, while the S&P 500 advanced 0.3%. The Nasdaq Composite gained 0.11%. On Friday the tech-heavy index rose to a new all-time intraday high, becoming the first of the major indexes to erase all of its coronavirus-induced losses. – Stevens
Over the weekend Bloomberg reported that Astrazeneca had approached Gilead over a potential merger, but CNBC’s David Faber said that there’s nothing going on now. There may have been a CEO-to-CEO approach, but it’s not clear how far that got, according to numerous people, and no discussions are currently taking place. – Stevens
Duquesne Family Office CEO Stanley Druckenmiller said on CNBC’s “Squawk Box” that he was wary of growth stocks after the recent market rally.
“I have still something like Amazon and Microsoft in my largest holdings, but I have the least growth weighting in my portfolio that I’ve had in maybe six or seven years,” Druckenmiller said.
Druckenmiller said it was possible that he would change his mind in the coming weeks and conceded that he had been “way too cautious” during the market’s rally from its March lows. — Imbert, Pound
Stanley Druckenmiller, founder of Duquesne Capital, said he’s been humbled by stocks’ stellar comeback. “Well I’ve been humbled many times in my career, and I’m sure I’ll be many times in the future. And the last three weeks certainly fits that category,” he said Monday on CNBC’s “Squawk Box.” “What is clearly happening is the excitement of reopening is allowing a lot of these companies that have been casualties of Covid to come back and come back in force. With a combination of the Fed money and, in particular, a vaccine where the news has been very, very good,” he added. In May the longtime investor said “the risk-reward for equity is maybe as bad as I’ve seen it in my career.” Since then the S&P 500 has gained more than 11%. – Stevens, Franck
KeyBanc upgraded shares of Dunkin’ Brands to an overweight rating based on improving same-store sales as restaurants around the country begin to reopen. In a note titled “time to make the dough,” the firm said the restaurant chain has executed well during the pandemic. “We believe Dunkin’s commitment to better execution of its core menu (e.g., coffee, donuts, and breakfast sandwiches), new beverage-led innovation, and national value (e.g., Go2s, Dunkin’ Run) will help the brand reassert its leadership position in the morning daypart (~60% of sales) and allow it to better compete in the afternoon when the nation returns to work,” analyst Eric Gonzalez wrote in a note to clients. The firm’s $78 target represents a 14% rally from Friday’s closing price. Shares of the fast food chain gained more than 5% during Monday’s premarket trading. – Stevens
Energy stocks moved higher on Monday, with the Energy Select Sector SPDR (XLE) jumping more than 6% in premarket trading. The sector gained 15.41% last week for its best week on record as oil prices rose to three month highs. Over the weekend OPEC and its oil-producing allies agreed to extend their record production cut – equivalent to about 10% of worldwide demand – for another month in an effort to further support prices. – Stevens
Shares of Boeing soared 8.5% in premarket trading, putting the stock on track for its sixth straight day of gains. Boeing is benefiting from the overall optimism about the reopening of the economy. Meanwhile, Seaport Global Securities initiated coverage of Boeing with a buy rating, saying the worst of pandemic-related risk is now priced in. The firm set a 12-month price target of $277 for the plane maker, which would translate into a more than 30% gain from Boeing’s close on Friday of $205.43. Shares of Boeing have risen 54% in the past month, trimming its 2020 losses to about 36%. –Li, Schacknow
After last week’s rally, here’s where the market stands:
- Dow gained 6.81% last week for its best weekly performance since April 9
- Dow is 8.31% below its record high
- Dow is down 5% this year
- S&P 500 gained 4.91% last week for its best weekly performance since April 9
- The S&P is 5.88% below its record high
- The S&P is down 1.14% this year
- The Nasdaq Composite rose 3.42% last week for its third straight positive week
- The Nasdaq Composite rose to a new all-time intraday high on Friday, but did not close at a new record
- The Nasdaq Composite closed 0.03% below its all-time closing high on Friday
- For the year the Nasdaq Composite has gained 9.38%. – Hayes
London-listed AstraZeneca has abandoned tentative, early interest in merging with Gilead Sciences, the American biopharmaceutical company behind coronavirus treatment remdesivir, according to The Times. The English-Swedish company is thought to have scrapped a deal because it would have distracted it from its own therapy pipeline, according to the report. The Times report, published on Monday, poured cold water on a Bloomberg News report that on Sunday said AstraZeneca made a preliminary approach to Gilead in May for a potential combination. That deal, had it occurred, would have been the largest health-care deal on record. — Franck
One of the big events for markets this week will be the two-day Federal Open Market Committee meeting that starts Tuesday. Wall Street is expecting a lot of talk but not much action. Among the main topics for the Fed’s policymaking group will be whether to implement so-called yield curve controls, which would entail buying bonds with the intention of keeping yields at lower levels. In tandem with that, the committee is likely to discuss strengthening its forward guidance, or commitment to keeping short-term rates at low levels until certain economic benchmarks are met. However, markets are not expecting definitive moves on either topic. Fed Chairman Jerome Powell will conduct a virtual news conference Wednesday after the meeting. – Cox
Travel stocks – airlines, hotels and cruise lines – looked to extend last week’s rally as demand starts to pick up with coronavirus lockdowns easing. United Airlines was up 10% in premarket trading on Monday, while Delta jumped 8%. Shares of Carnival and Royal Caribbean were up more than 10% each in premarket. Hilton and Marriott both gained more than 3%. Retailers, also tied to the reopening of the economy, were among the biggest gainers with Kohl’s and Nordstrom both popping more than 8% in premarket.— Li
U.S. stock index futures were sharply higher Monday, with the Dow Jones Industrial Average set to jump more than 200 points at the open, for a gain of 0.8%. The S&P 500 was slated to open 0.4% higher, while the Nasdaq Composite was poised to begin trading around the flatline.
Monday’s action builds on recent strength in the market as the economy’s reopening as well as better-than-expected economic data have pushed the major averages higher. On Friday, the Nasdaq Composite rose to a new all-time intraday high, becoming the first of the major indexes to wipe out its coronavirus-induced losses. The S&P 500 is now down just 1% for the year and is about 6% below its February record high. The Dow has a little more ground to make up and is sitting roughly 8% below its high. The major averages are coming off their best week since early April.
Some outperformers last week included airline stocks. The NYSE Arca Airline Index is coming off its best week on record, after registering a gain of 36.87%. – Stevens
– CNBC’s Jeff Cox, Chris Hayes, Peter Schacknow, Jesse Pound and Tom Franck contributed reporting.
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Author: Pippa Stevens,Yun Li,Michael Bloom
Dow rises 150 points as reopening optimism continues to boost stocks
Stocks rose on Monday, building on the previous week’s sharp gains on optimism over the economy reopening.
The Dow Jones Industrial Average traded 150 points higher, or about 0.6%. The S&P 500 climbed 0.1% while the Nasdaq Composite was down 0.1% after hitting a record high.
Stocks tied to the reopening of the economy led the gains once again. Airlines, retailers and cruise lines were higher. United was up 6.1%. Kohl’s added 5.6%. Shares of Carnival Corp. were up more than 11%.
Stay-at-home winners such as Netflix, Microsoft and Zoom Video all lagged the broader market. Netflix dropped more than 2% while Microsoft traded 1.4% lower. Zoom Video shares slid nearly 4%.
“What is clearly happening is the excitement of reopening is allowing a lot of these companies that have been casualties of Covid to come back and come back in force, ” said Stanley Druckenmiller, chairman and CEO of the Duquesne Family Office, on CNBC’s “Squawk Box.” “With a combination of the Fed money and, in particular, a vaccine where the news has been very, very good.”
“Well I’ve been humbled many times in my career, and I’m sure I’ll be many times in the future. And the last three weeks certainly fits that category,” added the legendary hedge fund manager, who admitted he missed the comeback because he underestimated the Federal Reserve.”
The Dow surged 6.8% last week while the S&P 500 jumped 4.9%. The Nasdaq Composite climbed 3.4% and closed at record levels for the first time since Feb. 19. The tech-heavy Nasdaq was the first of the three major indexes to trade back at all-time highs since the coronavirus pandemic shuttered the global economy.
The S&P 500 is down just 0.7% for the year. At one point this year, the broader market index was down 30%.
A large portion of those weekly gains came Friday, when equities skyrocketed on the back of a surprise surge in U.S. employment. The Labor Department said Friday the economy added 2.5 million jobs in May, a record. Economists polled by Dow Jones had forecast a drop of more than 8 million.
“The 2.5 million rebound in employment last month reverses only a small fraction of the jobs lost since February,” said Michael Pearce, senior U.S. economist at Capital Economics. “But considering we and the consensus had been braced for another large decline, it builds on the signs from some of the other macro data this week that economic activity is rebounding faster and more vigorously than we had anticipated.”
Friday’s report came as states continued their reopening processes. All 50 states have eased quarantine restrictions to some degree, with restaurants and other businesses resuming operations in some states. New York City, once the global epicenter of the pandemic, started to reopen.
Data compiled by OpenTable shows restaurant bookings across the U.S. are now 80% below last year’s levels. In April, bookings were down 100%. Hotel occupancy rates, home purchases and U.S. air travel have also started to increase.
Expectations of a swift economic recovery have sent stocks flying since hitting lows on March 23. In that time, the S&P 500 has rallied more than 45% while the Dow has gained over 48%.
“It appears that the most rapid bear market in history has been followed by the most dramatic recovery in history,” wrote Marc Chaikin, CEO of Chaikin Analytics. “While COVID-19 cases are still growing in certain states, particularly outside of densely populated urban areas, investors see the glass as half-full and are looking ahead 12-18 months.”
Stocks that benefit the most from the economy reopening have led the charge higher for the broader market.
JPMorgan Chase and Citigroup are both up more than 23% quarter to date while Hilton Worldwide is up 27.8%. American Airlines shares are up 52.5% in that time while Delta and United have gained 19.7% and 34.4%, respectively.
Investors will be concentrating on the Federal Reserve’s statement on interest rates Wednesday and a press conference from Chairman Jerome Powell. The Fed is expected to reiterate its commitment to unlimited asset purchases to keep markets functioning.
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Author: Fred Imbert