Live Markets U.s.: 2019 IPO market: The good, the bad, and the ugly
31/12/2019 15:12
* Major averages roughly flat
* Sectors mixed; materials lead gainers, comm svcs biggest
loser
* Gold up; U.S. 10-yr T-Note yield ~1.93%
Dec 31 - 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
2019 IPO MARKET: THE GOOD, THE BAD, AND THE UGLY (1000
EST/1500 GMT)
Despite the high-profile flops of Uber Technologies UBER.N
and Lyft Inc LYFT.O , and WeWork's aborted public offering,
most of this year's IPOs finished in the green.
Buoyed by a healthy fourth quarter rally in the biotech
space along with a solid outcome in December by back-office
software provider Bill.com BILL.N (up 70% from IPO price), the
average return for 2019 IPOs stands at about 26%. Roughly 60% of
this year's 152 debutantes are trading above issue, based on a
Reuters study. (Study excludes Slack Technologies WORK.N ,
which chose a direct NYSE listing)
The ride, however, was far from smooth. By mid-October the
average return collapsed to about 2% from 30% at the end of June
in the wake of dismal September debuts from the likes of
SmileDirectClub SDC.O and Peloton Interactive PTON.O as
investors slammed the brakes on money-losing companies. Indeed,
UBER and LYFT are still trading 34% and 40% below their IPO
prices, respectively.
On the flip side, vegan-burger maker Beyond Meat BYND.O
saw its stock sizzle to nearly $240 just months after its May
debut. Since then, BYND cooled off significantly, but is still
triple its IPO price.
Top 10 performers:
Bottom 10 performers:
Looking ahead, companies and their investment bankers will
likely attempt to get deals done as early as possible before
investors shift their focus to the U.S. presidential election.
Meanwhile, Renaissance Capital, said the IPO backlog of
billion-dollar companies is larger than ever. In its year-end
review, the research firm and manager of IPO-focused ETFs
calculates that 2020 issuance could be roughly as active as
2019.
Household and kitchen products maker Reynolds Consumer
Products Inc filed https://www.sec.gov/Archives/edgar/data/1786431/000119312519293392/d769843ds1.htm
for an IPO that could raise more than $1 billion, while
well-known shoemaker Cole Haan could seek to go public
urn:newsml:reuters.com:*:nPn5tmDn7a.
Also, short-term home rental company Airbnb Inc and online
food delivery firms DoorDash and Postmates are notable potential
debutantes. But Airbnb is among several startups reportedly
mulling the direct-listing route. urn:newsml:reuters.com:*:nL2N26M15O urn:newsml:reuters.com:*:nL8N28M6A3
(Lance Tupper)
*****
S&P 500: ANOTHER YEAR-END TREND CHANGE? (0915 EST/1415 GMT)
The S&P 500 .SPX has seen quite a rally from its
late-December 2018 trough. The broad-market average up more than
28% year-to-date, putting it on track for its best year since
2013.
However, one notion put forth by proponents of Gann Theory,
is that U.S. markets may see turning points around the northern
hemisphere's fall and spring equinoxes as well as the winter and
summer solstices. (Click on chart below)
Therefore, some traders may be on alert around these events,
for an acceleration of the prevailing trend, or a significant
reversal. Looking back to late-2018, the S&P 500 has seen some
interesting action develop around these seasonal dates. Indeed,
traders are noting that the SPX's 3,247.93 high this past Friday
did come within one week of this year's winter solstice on
December 21.
Traders may also look for turns around the anniversary dates
of significant highs and lows. Thus, adding to the potential for
a trend change, this year's December high came exactly 52 weeks,
or 1 year, from 2018's late-December trough.
Additionally, the SPX has so far failed to sustain strength
above the resistance parallel from early May. This line, which
now comes in at around 3,250, may continue to hinder gains.
Meanwhile, with Monday's downside turn, the SPX is on track
for its worst week since late-September. urn:newsml:reuters.com:*:nL1N29108S
(Terence Gabriel)
*****
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2019 Bottom 10 IPO Performers https://tmsnrt.rs/36dXD3A
2019 Top 10 IPO performers https://tmsnrt.rs/2tnkjzF
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