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Mid-Day Update: Wall Street All A-Twitter But IPO Failing To Generate Demand For Broader Markets
By: MT Newswires
Twitter's ( TWTR ) eagerly anticipated IPO failed to generate any follow-through demand for the broader markets as stocks limp into negative territory despite what looked earlier like a continuation of yesterday's late rally to record highs. Stocks futures were resoundingly higher prior to the open following a rate cut by the European Central Bank and from investor excitement the $1.8 billion initial public offering by the social-networking giant.
TWTR shares opened at $45.10 each, or about 80% above its IPO price of $26 and climbing as high as $50.09 over the past hour. At last look, shares were fetching $45.56 apiece.
The fascination with the TWTR IPO overshadowed this morning's economic data which included a much better than expected 2.8% growth rate for Q3 GDP as well as a 9,000 drop in initial jobless claims, both of which weigh in favor for a QE taper into early 2014. Although Treasury yields pulled back on the above consensus GDP, the data had little initial impact on equities in pre-market trading.
European equities popped higher on the ECB rate cut, but the rally is losing steam in sympathy with U.S. markets, as well as the realization that the rate cut was offered to stimulate a sluggish economy and developing deflation. The Bank of England kept UK rates unchanged even though inflation and manufacturing data hinted at a possible rate hike.
Crude oil was down $0.79 to $94.01 per barrel. Natural gas was up $0.06 to $3.63 per 1 million BTU. Gold was down $6.40 to $1,311.70 an ounce, while silver was down $0.08 to $21.69 an ounce. Copper was unchanged at $3.24 per pound.
Among energy ETFs, the United States Oil Fund was down 0.73% to $33.94 with the United States Natural Gas Fund was up 1.56% to $17.62. Amongst precious-metal funds, the Market Vectors Gold Miners ETF was down 0.76% to 24.62 while SPDR Gold Shares were down 0.61% to $126.42. The iShares Silver Trust were down 0.53% to $20.89.
Here's where the markets stand at mid-day:
NYSE Composite Index down 41.14 (-0.41%) to 10,018.32
Dow Jones Industrial Average down 19.87 (-0.13%) to 15,727.01
S&P 500 down 6.65 (-0.38%) to 1,763.84
Nasdaq Composite Index down 36.45 (-0.93%) to 3,895.50
GLOBAL SENTIMENT Nikkei 225 Index down 0.76%
Hang Seng Index down 0.68%
Shanghai China Composite Index down 0.48%
FTSE 100 Index down 0.66%
CAC 40 down 0.14%
DAX up 0.44%
NYSE SECTOR INDICES
NYSE Energy Sector Index down 0.52%
NYSE Financial Sector Index down 0.35%
NYSE Healthcare Sector Index down 0.21%
(+) TWTR (+75.2%) The stock was sold at $45.10 versus the offering price of $26.00
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NVTL (-24.57%) Revenue came in weaker than expected and the company projected Q4 revenue well below analysts' estimates while warning of increased competition at a customer in the mobile-hotspot category.