1) Gold, which is known as a ‘panic’ investment to guard against economic collapse, is passing $1,400 an ounce for the first time since 2013. Fueled by the fears of an international economic downturn and possible military action between Iran and the U.S., coupled with the large buying of gold by China, experts say that prices could reach $1,500 to $1,600 per ounce in the next year. Gold has historically been seen as a guard against devaluation of currencies.
2) Slack, the workplace messaging software used in tech and media companies, may be breaking the grip Wall Street has on Silicon Valley. The IPO’s of tech companies have been the controlling link of Wall Street on tech companies, but Slack used direct listing of its stock instead of the traditional IPO, thus cutting Wall Street out of the equation. This means that Wall Street isn’t able to tell companies what to do in becoming a public company.
3) Automation continues to cut into the job market with these ten career fields declining because of technology. The Telemarketer jobs are down 52%, followed by File clerks down 46%, Sorters of mail at 44%, Bill collectors down 39%, Data entry 36%, Order clerks 36%, Chief executives at 35%, Production worker helpers 30%, Installation, maintenance and repair helper 30% and finally Telecommunication line installer/repairers down 30%.
4) Stock market closings for- 21 JUN 19:
Dow 26,719.13 down 34.04 Nasdaq 8,031.71 down 19.63 S&P 500 2,950.46 down 3.72
1) The worst case for China in the trade war is slow growth, rising debt with companies exiting. If China’s growth should tumble, her debt would surge resulting in foreign companies fleeing a worsening business environment. The escalating economic clash with America is exacerbating the existing economic jitters across the world.
2) In the worsening trade war China, the largest owner of US debt, is selling off it’s Treasury holdings at the fastest rate in the last two years. China holds $1.12 trillion dollars, or about 7% of America’s total debt. China has been threatening to either not buy additional Treasury bonds or even selling off its holdings in retaliation for US actions in the trade war.
3) Pinterest Inc. stock has dropped more than 15% after it released its first earnings report. This is just twenty trading days after their IPO (Initial Public Offering). Pinterest explained the earnings drop as a result that the reported period was before the IPO, plus an increase in cost as a result of hiring of new employees.
4) 16 MAY 19 Stock market closings: Third day of across the board of stock rises.
Dow 25,862.68 up 214.66 Nasdaq 7,898.05 up 75.90 S&P 500 2,876.32 up 25.36
Uber the rideshare tech company, its stock tanked on its first official trading day on the NYSE, Friday, May 10, 2019 will be a day of turmoil on the Uber corporate calendar. It was a horrible trading day for the mammoth ride sharing tech company.
Uber declined close to 8% during the stock market trading day. The stock plummeting so much (in which it did), is the first time any stock has come out the gates on Wall St and lost so much market share. The valuation of Uber was at $76 billion dollars, when analysts had predicted that it would be valued around $90-$100 billion dollars, well that didn’t happen. Not only that, Uber has been bleeding money and the perception is that, Uber won’t actually make any real money until the year 2024, hopefully.
Uber being one of the biggest IPO companies probably since Alibaba, Facebook and a few others. So it to falter as it did was a shocker to some and to others, not so much. Technology companies tend not to fare well in the beginning of their IPO presence. Facebook had a rocky start coming out the gates and other big tech companies before it, have gone through similar revelations.
It’s the test of time that will dictate the longevity of Uber’s existence and if they can navigate their ship in theses rough and turbulent stock market waters. -SB
1) Uber raised $8.1 billion in it’s IPO (Initial Public Offering), which was priced near the bottom of the range. Uber sold 180 million shares at $45 each, making its listing among the 10 largest U.S. IPOs. This gives Uber a market value of $75.5 billion dollars, however Uber is deeply unprofitable with $3.04 billion dollars in losses last year.
2) Traders wait to see if President Trump hikes tariffs today. U.S. equity futures were little changed this Thursday while traders wait for the midnight deadline when tariffs are scheduled to take effect. These tariffs will be imposed on $200 billion dollars worth of Chinese goods. Fears are that market reaction will be severe, which either way the tariffs goes.
3) The U.S. trade deficient has widened to $50 billion dollars in March, up 1.5% from February. Economists had anticipated the U.S. trade deficit to fall, but much of the increase came from higher crude imports.
4) 9 MAY 19 Stock market closings:
Dow 25,828.36 down 138.97 Nasdaq 7,910.59 down 32.73 S&P 500 2,870.72 down 8.70
1) Just two days after its IPO, Lyft stock price has dropped to $68 per share, which is $4 below it’s offering price of $72 per share. No bad news had been released about Lyft, it’s just that volatile stock prices is part of IPO’s.
2) Netflix prices to customer goes up this next month. Price increases is going to help pay for new program production. Netflix budgeted $8 billion dollars for new shows and movies in 2018 and expects a larger budget for 2019.
3) 2 APR 19 Stock market closings:
Dow 26,179.13 down 79.29 Nasdaq 7,848.69 up 19.78 S&P 500 2,867.24 up 0.05
1) Britain’s Prime Minster’s third try to get her Brexit plan voted through Parliament has failed, even though it was a stripped down version. This time the vote was by the narrowest margin. It’s now two weeks remaining to draw up a new plan and try again before the crash out. There is growing dissatisfaction with British people over Brexit with increasing numbers of demonstrations for and against. Also, there are growing calls for a general election, with the Labor party apparently using the Brexit issue to force a general election.
2) Lyft, the competitor to Uber, goes public with stock going for about $10 more than anticipated. Initially priced at $72, the stock opened at $87.24 per share and closed 8.7% higher. The company anticipates to raise $29 billion dollars in it’s offering. The stock is a two tier stock with one tier having one vote per share and the other having 20 votes per share.
3) 29 MAR 2019 Stock market closings:
Dow 25,928.68 up 211.22 Nasdaq 7,729.32 up 60.15 S&P 500 2,834.40 up 18.96
1) The English pound has had its biggest single day drop because of Brexit. Brexit will be delayed until May the twenty-second if the British Parliament passes the exit deal.
2) Boeing has experience its first cancellation of its 737 MAX with Indonesia canceling a huge order of 49 aircraft. Boeing is rushing to complete its new warning system since the 737 MAX is its biggest seller.
3) Pinterest files for its IPO, releasing its prospectus this last Friday showing a $53 million dollar loss. Presently, the software has about 265 million users. Uber also plans to list its IPO on the New York Stock Exchange, the largest so far this year.
4) 22 MAR 19 Stock market closings: Dow dropped over fears of a global slowdown.
Dow 25,502.32 down 460.19 Nasdaq 7,642.67 down 196.29 S&P 500 2,800.71 down 54.17
1) Early estimates for the cost of the left’s proposed Green New Deal are $93 trillion dollars, an amount that is four times the present National Debt. This translates into about $650,000 dollars for each person in America. The present National Debt is $22 trillion dollars, with many fearing the debt is already a danger for America’s future viability. The study also refuted claims of the Green New Deal being an investment in America’s future, that the savings would pale in comparison to investment.
2) Lyft, a ride sharing app much like Uber, has filed for an IPO. Some are claiming we’re in an end game for automobiles, that car ownership is on the decline. Car ownership is becoming too expensive for people, so it is shifting from private car ownership to ‘Transportation as a Service’ spurred by the upcoming self driving cars.
3) Congress will soon be facing the budget problem again. With the National Debt now at $22 trillion dollars and the debt ceiling reinstated this last Saturday, this promises to be another major contentious issue for the congress to fight over. Estimates are that the US will add another $12.2 trillion dollars in the next ten years.
4) 1 MAR 19 Stock market closings:
Dow 26,026.32 up 110.32 Nasdaq 7,595.35 up 62.82 S&P 500 2,803.69 up 19.20
1) The executive and CEO of Quadriga, Canada’s largest crypto exchange, dies with $145 million dollars of customer money electronically locked away. Only the CEO knew the pass words needed to unlock the money.
2) EU economic slow down, with EU experiencing its weakest growth since 2013, amidst manufacturing slowdown. The German economy is accelerating while Frances is slowing down.
3) Tech companies Slack, Airbnb and Uber are making their IPOs this year, but several other tech companies are pulling their plans for IPO because of the uncertain world economic.
4) 5 FEB 19 Stock market closings:
Dow 25,411.52 up 172.15 Nasdaq 7,402.08 up 54.55 S&P 500 2,737.70 up 12.83
Back with the latest episode of the EFR podcast; the first episode of the new year, Businessman Bassey along with co host James Lymon and super engineer KH (Kyle Harper), speak on economic and financial developments that occured in the first quarter of 2017.
Topics range from the economy, stock market, wall street, IPOs, companies, wages, labor, global markets, investing, people, and business talk across the economical and financial spectrum…… Check the episode below… Stay Blessed & God Bless-SB