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Reuters Insider - U.S. Morning Call: Fitbit launches on market

Thu 18th June, 2015 1:11pm
Click the following link to watch video:                       
 Source:             Thomson Reuters                                   
 Description:        The fitness tracker firm's IPO is going down well 
                     with investors                                    
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Transcript (May be auto-generated)

                 Good morning. Lots of tech companies have put money in research into fitness 
trackers but we're set to find out how the markets rate the investment potential
of the gadgets, as Fitbit launches on the New York Stock Exchange later today. 
There's a lot of competition in the sector from products like the Apple Watch 
but the San Francisco start-up has seen strong investor demand, starting with a 
valuation of more than $4 million after pricing its shares at $20 each, up from 
an initial prospectus price of $14. Fitbit wristbands track calories burned and 
distance travelled and users include Barack Obama who has a Fitbit watch. We'll 
soon see if the markets race to invest. Well, let's have a look at some of the 
other stocks to watch this morning then- supermarket operator Kroger reports 
first quarter profit, likely to be above analyst estimates. The company has cut 
prices on organic goods and milk so we'll see if that's helped boost its sales. 
Kroger shares start the day at $72.91. 

The world's largest commercial distributor of the Linux operating system, Red 
Hat, also reports first quarter results and they're expected to be strong 
despite the value of the Dollar hurting revenue. Red Hat starts the day at 
$78.26. And Rite Aid, the third biggest drugstore chain in the US is expected to
report strong sales. It's nevertheless seen a slip in the premarket, down to 
around $8.50. There's plenty of economic data out later today that markets will 
be looking out for. Consumer prices and jobless claims are out, with prices 
expected to be flat while jobless claims should hold well below 300,000. Last 
week there were 279,000 new claims. Well let's take a look at where the markets 
start the day. The futures markets are recovering very slightly from yesterday's
Greece-inspired selloff. One of the biggest gainers in the premarket so far is 
BioMarin Pharmaceutical which is up nearly 8% on the back of a study announced 
afterhours which suggested its treatment for one of the most common causes of 
dwarfism could be effective in allowing children to resume normal growth. And 
Joe's Jeans is up more than 20%, following yesterday's 50% surge in its price. 
One of the biggest losers is Hercules Offshore which was down more than 50%, 
following news that it's entered a restructuring agreement with noteholders and 
may face a Chapter 11 bankruptcy filing. 

Finally, some good news for the overworked interns of Wall Street as the summer 
internship season starts. Goldman Sachs has banned its interns from the office 
between midnight and 7AM. The move comes after the death of a 21-year old Bank 
of America Merrill Lynch intern in 2013 after working 72 hours straight. That 
shone a spotlight on the frequently exhausting hours worked by investment bank 
interns, prompting Goldman to remind them to work hard - but not too hard. And 
that's today's morning call. Don't forget, you can follow us on Twitter 
@ReutersInsider and watch more videos at I'm Melani Ralph and 
this is Reuters
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