Dow Jones Futures: From Apple To Zscaler, This Is The New Stock Market Trend
Dow Jones futures: From low Apple TV+ pricing to Rokus sell-off and Ally Financials breakout, value is in. Already-reeling Zscaler plunged on guidance. RH fell too.
Why RH Stock Fell after Q2 Beat, Upbeat Guidance
RH posted stronger-than-expected second-quarter results after the markets closed on Tuesday. The company also increased its fiscal EPS outlook.
Aramco Is Said to Pick BofA, Goldman, JPMorgan for Top IPO Roles
(Bloomberg) — Saudi Aramco has picked banks including Bank of America Corp., Goldman Sachs Group Inc. and JPMorgan Chase & Co. for top roles on its planned initial public offering following intense lobbying by some of the worlds top dealmakers, people with knowledge of the matter said.Aramco started telling some banks of their selection Tuesday, the people said, asking not to be identified because the information is private. It plans to add more joint global coordinators to the deal, according to the people.The energy giant is considering first selling around a 1% stake through a listing on the Saudi stock exchange, with the possibility of selling another 1% on the local bourse at a later date, one person said. Aramco, officially known as Saudi Arabian Oil Co., didnt immediately respond to a request for comment.A representative for Bank of America couldnt immediately be reached for comment, while representatives for Goldman Sachs and JPMorgan declined to comment.Chief Executive Officer Amin Nasser said earlier Tuesday that Aramco is going to sell shares very soon. The primary exchange for the listing will be the local bourse, Nasser told reporters at an industry conference in Abu Dhabi.Aramco is targeting an offering in the domestic market as soon as late 2019 or early 2020 ahead of an eventual international listing, Bloomberg News has reported. While it has yet to make a decision on the overseas venue, top officials from exchanges in London, New York and and Hong Kong have been actively pitching the oil producer.Relationship BuildingBankers spent the beginning of the month making presentations in Aramcos headquarters in Dhahran, with some additional meetings in Dubai and London, Bloomberg News has reported. The company invited more than 20 advisory firms from the U.S., Europe and Asia to compete, including some of the worlds biggest underwriters as well as a number of smaller banks.It was the final push in what was, for some, years of relationship building with Aramco in the kingdoms otherwise sleepy Eastern Province. The oil producer was originally working with Evercore Inc. and Moelis & Co., as well as HSBC Holdings Plc, JPMorgan and Morgan Stanley, during its first attempt at an IPO.The on-again-off-again plans for an Aramco listing had been put on hold as the firm focused on a $69 billion deal for a majority stake in petrochemical maker Saudi Basic Industries Corp. When the preparations were revived this year, many of the banks that won roles initially had to start over, leading some to wonder whether it was worth the effort.The IPO project was first announced in 2016 as the cornerstone of the kingdoms Vision 2030 plan to modernize its economy, with a target of listing in the second half of 2018.–With assistance from Archana Narayanan, Sarah Algethami and Abbas Al Lawati.To contact the reporters on this story: Dinesh Nair in London at ;Myriam Balezou in London at ;Matthew Martin in Dubai at o contact the editors responsible for this story: Ben Scent at , Amy Thomson, Michael HythaFor more articles like this, please visit us at ©2019 Bloomberg L.P.
Apple iPhone event reveals a dramatic change in strategy
One of the most surprising elements of Apple Inc.s September iPhone launch was its aggressive pricing on many products, especially its new streaming service.
Aramcos Long-Awaited IPO May Be Kryptonite to Saudi Stocks
(Bloomberg) — Its been at least three years in the making, but its just dawned on investors what a share sale by Saudi Aramco would do to the Arab worlds biggest stock exchange.The Tadawul All Share Index almost wiped out this years gains after the kingdoms efforts to line up banks for the sale spurred market players to realize the initial public offering really is happening. About 90% of the indexs stocks fell.All local index constituencies should suffer outflows, said Slava Breusov, a senior analyst with the emerging and frontier equities team at AllianceBernstein in New York.The IPO is part of Crown Prince Mohammed bin Salmans efforts to modernize the economy and diversify the nations revenue from oil, including turning the bourse into a gateway for foreign investment. The kingdom spent years relaxing rules for foreign traders and aligning its market with global peers, culminating in its inclusion in MSCI Inc. and FTSE Russells developing-nations equity benchmarks.The worlds most profitable company is planning a listing in Riyadh, and potentially another internationally, although the timings of either havent been announced. The energy giant is considering first selling around a 1% stake through a listing on the Saudi stock exchange, with the possibility of offering another 1% on the local bourse at a later date, one person with knowledge of the matter said.Barring some sort of liquidity injection by the Saudi government, I would expect an Aramco local listing to be a drain on the rest of the market as Aramcos behemoth size crowds out other local investments, said Adam Choppin, an investment officer at FIS Group in Philadelphia.The index fell as much as 2.5% as of 2:01 p.m. in Riyadh.What Its WorthPrince Mohammed in 2016 valued Aramco at about $2 trillion, which means floating 1% would be valued at about $20 billion. That would account for about 4% of the market. To be sure, Bloomberg Intelligence values Aramco at $1.1 trillion because of the likelihood that Saudi Arabia will need to limit its output, and other analysts have said about $1.5 trillion. Brent crude at about $60 a barrel isnt enough to fund the the kingdoms budget, which needs prices at $80 a barrel or more.But even if Aramcos worth is lower than the kingdoms estimates, it would still dwarf other equities. Its profit in the first half of the year was more than four times the combined earnings of 170 Saudi publicly traded companies that reported earnings, according to data compiled by Bloomberg.And assuming the companys valuation is about $1.5 trillion, a 1% listing would put Aramco at 5.2% of the main stock index, according to Mohamad Al Hajj, an equities strategist at EFG-Hermes in Dubai. That would dilute the dominance of other market heavyweights, such as Al Rajhi Bank, which currently accounts for 15% of the index. The equity would receive roughly $1.9 billion in inflows from MSCI and FTSE passive trackers alone, almost a tenth of total foreign inflows into the Saudi bourse so far this year.Considering the size of Aramcos IPO and its expected weight in indexes, the company will have a significant effect not only on the local gauge, but also on global indexes, said AllianceBernsteins Breusov.–With assistance from Rim Oueidat.To contact the reporters on this story: Netty Ismail in Dubai at ;Filipe Pacheco in Dubai at o contact the editors responsible for this story: Dana El Baltaji at , Michael GunnFor more articles like this, please visit us at m©2019 Bloomberg L.P.
DuPont to Sell Silicon Carbide Wafer Business to SK Siltron
The divestment is in sync with DuPonts (DD) strategy of active portfolio management.
Energy, financial stocks soar: Oversold bounce or the beginning of a break out?
Septembers stock market gains have been broad based and driven by performance of cyclical sectors, and these trends may be bullish for the overall market
Dow futures edge higher as blue-chip gauge aims for 6th straight rise
Stock-index futures edge higher Wednesday, as global equities rose amid optimism over trade and expectations for additional central-bank stimulus.
Green property financing, Frontier impact, US chiefs v gun violence
Also we have some good news: FT.com is lifting its paywall on September 18 so anyone even non-subscribers can get access to all of our journalism including Moral Money. Impact investors in frontier markets are expecting healthy returns despite the risks and Walmarts new guns policy is looking pragmatic. If you say the word green to most British voters, they will mostly think about electric cars or wind turbines.
Trump says Fed should cut interest rates to zero or less
President Donald Trump on Wednesday made his first comment seemingly in support of negative interest rates, tweeting that the Fed should cut interest rates to zero or less. He also tweeted, without clarification, that we should then start to refinance our debt, which is seemingly an instruction to Treasury Secretary Steven Mnuchin, while at the same time substantially lengthening the term. The Fed currently targets the federal funds rate between 2% and 2.25%, with market expectations of further reductions next week.
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