Live Markets U.s.: Major averages post modest changes, end mixed
09/09/2019 21:18
* Major averages end mixed; small caps, transports
outperform
* Energy, financials lead sector gainers; healthcare weakest
* U.S. 10-Year Treasury yield up to ~1.64%
Sept 9 - Welcome to the home for real-time coverage of U.S.
equity markets brought to you by Reuters stocks reporters and
anchored today by Terence Gabriel. Reach him on Messenger to
share your thoughts on market moves:
terence.gabriel.tr.com@reuters.net
MAJOR AVERAGES POST MODEST CHANGES, END MIXED (1605 EDT/2005
GMT)
The major averages struggled to hold their opening upside
thrusts, and ultimately settled back, before ending the session
mixed. Changes were relatively small.
Indeed, the Dow .DJI managed to finish up 0.15%, while the
S&P 500 .SPX almost ended unchanged. The Nasdaq .IXIC posted
a modest decline. With the slight changes, Fibonacci retracement
zones remain either sticky, or tough hurdles for Futures
1YMcv1 EScv1 NQcv1 or the major averages to cross.
urn:newsml:reuters.com:*:nL2N26009G
Small caps, however, outperformed. The Russell 2000 .RUT
rallied more than 1%. The Dow Transports .DJT were also
strong, gaining 2%.
Energy .SPNY and financials .SPSY posted the biggest
gains on a mixed sector board. This as NYMEX Crude Futures
CLcv1 and Treasury yields US10YT=RR both rose.
Tech .SPLRCT ended down and healthcare .SPXHC was the
weakest group. As a result of the sector swings, value IVE.P
outperformed growth IVW.P . In fact, the IVE/IVW ratio hit a
4-month high.
Precious metals miners continued their recent descent. The
VanEck Vectors Gold Miners ETF GDX.P fell about 2%, bringing
its 3-day slide to 10%.
Here is your closing snapshot:
(Terence Gabriel)
*****
HIGH-FLYING CLOUD STOCKS FALL BACK TO EARTH (1415 EDT/1815
GMT
Cloud computing stocks are selling off on Monday and leading
declines in a broad tech sector selloff, with investors dumping
recent winners including Alteryx AYX.N and Coupa Software
COUP.O .
Alteryx is tumbling 15%, on track for its biggest one-day
drop ever, and leaving its YTD gain at just over 100%.
Crowdstrike CRWD.O is slumping 14%, bringing its loss to 25%
since Thursday, when it reported strong quarterly reports and
raised its full-year forecast. urn:newsml:reuters.com:*:nL2N25W1W1
Business software seller Medallia MDLA.N , which also
reported upbeat results on Thurs, is down 23%, reducing its gain
since its July IPO to 26%.
The ISE Cloud Computing index .CPQ is off 1.6%, while the
S&P 500 information technology index .SPLRCT is giving back
more than 1%.
The cloud computing industry boasts some of the highest
earnings and sales multiples on Wall Street. Alteryx is trading
at about 210 times expected earnings, while Coupa Software and
Twilio TWLO.N are each trading at forward earnings multiples
above 400, according to Refinitiv data. Medallia and Okta
OKTA.O , which are both losing money, are trading at forward
revenue multiples of 9 and 21, respectively, per Refinitiv.
(Noel Randewich)
*****
IPO MARKET: LINEUP LENGTHENS WHILE WEWORK WEIGHS ITS OPTIONS
(1338 EDT/1738 GMT)
Three more companies launched their IPOs this morning,
extending the deal count to 11. Over the next two weeks these
hopefuls are looking to raise nearly $4 billion in proceeds.
Meanwhile, WeWork owner The We Company, which is eyeing a
September IPO kickoff, mulls slashing its valuation as investor
concerns over the U.S. office sharing manager's path to
profitability and corporate governance mount. urn:newsml:reuters.com:*:nL5N25X5AU
That said, the current backdrop remains conducive for new
issues. The S&P 500 .SPX has rallied sharply amid a two-week
winning streak and the CBOE Market Volatility index .VIX has
eased to just south of 16. A VIX level of 20 usually triggers a
"go/no-go" discussion between companies and their investment
bankers.
And overall IPO return performance has been relatively
strong despite this year's high-profile flops by ride-hailer
firms Uber Technologies UBER.N and smaller rival Lyft
LYFT.O . Indeed, the Renaissance IPO ETF IPO.P , which owns
shares of companies that recently went public, is up 31%
year-to-date.
SmileDirectClub SDC.O headlines this week's batch of six
potential offerings, as the direct-to-consumer orthodontics
company looks to price its up to $1.3 billion deal on Wednesday.
SEC filing https://www.sec.gov/Archives/edgar/data/1775625/000104746919004925/a2239521zs-1a.htm#dq46401_security_ownership_of_certain___sec02525
Next week, two tech deals are among the five IPOs scheduled
to price. Analytics software firm Datadog Inc https://www.sec.gov/Archives/edgar/data/1561550/000119312519240411/d745413ds1a.htm
($500 million) and cybersecurity company Ping Identity Holding
Corp https://www.sec.gov/Archives/edgar/data/1679826/000104746919005063/a2239550zs-1a.htm
PING.O ($200 million) join Danaher Corp's DHR.N dental
products unit, Envista Holdings https://www.sec.gov/Archives/edgar/data/1757073/000175707319000016/envistas-1a2prospectus.htm
($640 million) among the others.
(Lance Tupper)
*****
EXPECTATIONS FOR STOCK PRICE GAINS SHOW WEAR AND TEAR (1305
EDT/1705 GMT)
U.S. consumers' inflation expectations fell in August and
workers grew more pessimistic about their job situation, data
from the New York Federal Reserve showed on Monday. urn:newsml:reuters.com:*:nL2N2600QH
Indeed, the lingering effects of the trade war between the
United States and China, a slowdown in business investment and a
contraction in the manufacturing sector may be finally taking
their toll on the mindset of U.S. consumers.
Those issues appear to be reflected in the New York Fed
report, where only 38% of those surveyed expect U.S. stock
prices to be higher in a year, the lowest level since October
2016:
Meanwhile, in the latest American Association of Individual
Investors (AAII) Sentiment Survey released last week optimism
over the direction of stock prices over the next six months
climbed to 28.6%, its highest level since late July. That said,
optimism was below its historical average of 38.0% for the 28th
time this year and the 16th time in 17 weeks. urn:newsml:reuters.com:*:nL2N25X0WA
Separately, The Conference Board's U.S. Consumer Confidence
index inched down in August, though it was better than analysts
expected. urn:newsml:reuters.com:*:nL2N25N0NE
(Terence Gabriel, Dan Burns)
*****
IT'S BEEN A BIT OF A MURKY MONDAY FOR THE MAJOR AVERAGES
(1212 EDT/1612 GMT)
It's been a relatively quiet session so far with the major
averages struggling to move clearly in one direction or the
other. That said, small caps are outperforming with the Russell
2000 .RUT up more than 1% on the day.
This as hopes for further monetary stimulus from global
central banks may be putting a floor under the market at the
moment. urn:newsml:reuters.com:*:nL5N2604RA Indeed, Chinese stocks rose overnight after
Beijing cut the amount of cash banks must keep on reserve.
urn:newsml:reuters.com:*:nL3N2600SJ
In any event, despite a flat S&P 500 .SPX , there is more
spirited action under the surface. The energy .SPNY and
financial .SPSY sectors are enjoying gains of 1-2%. This with
NYMEX Crude Futures CLcv1 rallying more than 2% urn:newsml:reuters.com:*:nL3N2600T1,
and the U.S. 10-Year Treasury yield US10YT=RR back up to
1.62%.
Oil services and banks are among winners. The VanEck Vectors
Oil Services ETF OIH.P is advancing 6% urn:newsml:reuters.com:*:nL3N2603B6, while the
SPDR S&P Bank ETF KBE.P is tacking on close to 3%.
urn:newsml:reuters.com:*:nL3N2603CV
Meanwhile, tech .SPLRCT is on the losing side, while
healthcare .SPXHC is down more than 1%. With these swings,
value IVE.P is outperforming growth IVW.P .
Here is your midday snapshot:
(Terence Gabriel)
*****
For Monday's Live Markets - U.S. - posts prior to 1200 EDT/1600
GMT, click here: urn:newsml:reuters.com:*:nL2N2600N7
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midday09092019 https://tmsnrt.rs/2N5QxbA
NYfedstockexp09092019 https://tmsnrt.rs/316Qtvm
Cloud stocks sell off https://tmsnrt.rs/2N6r4i4
closer09092019 https://tmsnrt.rs/2N9MrPp
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((terence.gabriel.tr.com@reuters.net
terence.gabriel@tr.com 646-223-4122))