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Michael George Haddad
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Rate time. The three major market indices rallied after heavy losses early in the session and ended Friday in the dark. The United States has increased tariffs to 25% on Chinese goods worth $ 200 billion as of today, after the conclusion of the latest trade negotiations without any agreement. But investors continue to hope because President Donald Trump tweeted early in the morning saying that "there is absolutely no need to rush".
Uber Technologies
'(Ticker: UBER) closed their first trading day below the initial public investment price of $ 45. Today, after the bell, we …
- look at one of the advantages of the trade war;
- review the first trading day of Uber as a publicly traded company;
- and check the latest economic data from the United States and Europe.
Still waiting
US stocks rallied positive after being traded in the red for most of Friday. the
Dow Jones Industrial Average
increased by 114.01 points, or 0.44%, to finish at 25,942.37. the
S & P 500
added 10.7 points, or 0.37%, to close at 2881.40 and the
Nasdaq Composite
slightly up 6.4 points, or 0.08%, to end at 7916.94.
Despite the lack of encouraging business developments, investors remain hopeful that an agreement will be reached before harm is caused. The White House responded to President Trump's threat and raised the tariff rate on Chinese imports by $ 200 billion from 10% to 25%. China said that it "deeply regrets" this decision and that it will take "necessary countermeasures".
An advantage, noted Gorilla crafts strategist Ken Bermanis that the Federal Reserve will probably keep the interest rate low until an agreement is reached with China, which could boost equity in the coming weeks.
Uber's long-awaited IPO did not start with a pop, but with a groan. Trading began at around $ 42.50, already in the red of the IPO price at $ 45. The brokerage closed its first day of trading at $ 41.57, down 7.6% from the IPO price.
Most investors do not obtain shares at the offer price, but rather pay the price in the secondary market, which means that those who bought the Uber share today get a better deal than buyers of the initial public offering. This is a reversal of the usual pattern of IPOs.
Barron Al Root noted that even the $ 45 was at the lower end of the $ 44 to $ 50 range suggested in Uber's filings with the Securities and Exchange Commission. Root also noted that the general market was under pressure this week due to increased trade tension, and that investors would have to wait to judge the success of Uber's IPO.
April's Consumer Price Index (CPI) rose 0.3% from the previous month and 2.0% from the previous year, which is below expectations for 0.4% and 2.1%, respectively. Energy prices contributed to most of the increase, up 3.9% from the previous month, while food prices fell 0.1%, reversing their recent strength. .
Despite this absence, the April CPI report still supports Federal Reserve Chairman Jerome Powell's assertion that low inflation is simply "transitory," he wrote. Michael Shoaul of Marketfield Asset Management. The underlying dynamics of inflation remains unchanged, he wrote, and nothing in the report indicates an imminent break in the overall index or price index for consumption. The strength of the dollar is also probably one of the reasons for the decline in inflation through cheaper imports.
The latest European data should also reassure investors of lingering worries about a global slowdown. German trade data showed an unexpected rebound in exports in March, up 1.5% after falling 1.3% the previous month. The number came much higher than the consensus for a decline of 0.3%. Imports also increased 0.4% from the 1.6% drop the previous month.
The United Kingdom also reported solid growth in gross domestic product in the first quarter. GDP grew 0.5% in the three months to March, an improvement over last quarter's 0.2% growth, supported by the strongest quarterly performance since 1988, according to figures from the Office for National Statistics.
The hot stock
Booking Funds
BKNG climbed to the top of the S & P 500 index on Friday, following the first quarter results report from the online travel agent.
Reserve inventory rose $ 93.82 or 5.4% to $ 1,829.49.
Booking, formerly known as Priceline, earned $ 11.17 per share for a business turnover of $ 2.84 billion, while analysts were seeking $ 11.26 in EPS on revenue from $ 2.93 billion.
Over the last 12 months, the stock of reservations is down 12%.
The biggest loser
Symantec
(SYMC) is at the bottom of the index, following the release of its fourth quarter results and the departure of its general manager.
The Symantec stock lost 2.78 USD, or 12.5%, to reach 19.39 USD.
The cybersecurity software company earned 39 cents a share for a $ 1.2 billion business figure. Analysts were looking for a 39 cents EPS on a $ 1.21 billion business figure. For the full year, Symantec expects EPS of $ 1.65 to $ 1.80 on revenues of $ 4.76 to $ 4.9 billion. A consensus calls for EPS of $ 1.78 on revenues of $ 4.97 billion. CEO Greg Clark resigned from the company with immediate effect.
In the last 12 months, Symantec share declined 33.6%
–Teresa Rivas
Write to Evie Liu at [email protected]
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