EconomyMarkets

3 Things to Watch for September 17 By Investing.com

© Reuters.

By Liz Moyer

Investing.com — Stocks initially surged Wednesday when the Federal Reserve said it would hold rates steady and vowed not to raise them until 2023, but technology didn’t join in the festivities.

Heading into the closing bell, however, stocks lost momentum and erased earlier gains, with the even going negative.

Tech stalwarts like Apple Inc (NASDAQ:) and Facebook Inc (NASDAQ:) helped lead the declines, along with Tesla Inc (NASDAQ:). Snowflake Inc (NYSE:)rolled out the biggest software IPO on record, more than doubling at the open.

The week is set to be a big one for IPOs, with several more on tap for Thursday. Jobs and home building data are also on deck.

Here are three things that could affect markets tomorrow:

1. The IPO party continues

Investors continue to pounce on new stock offerings, especially in the tech sector, despite high prices. Cloud software maker Snowflake proved that on Wednesday, more than doubling when it opened from its $120 IPO price. The shares soared as high as $319 and settled back in the $260 range by the end of trading.

It’s the biggest week for IPOs since May 2019, with Snowflake being the biggest so far this year. Also due out this week are IPOs from Amwell, a telehealth company, and Dyne Therapeutics, a muscle disease therapeutics company.

2. More jobs data as Fed adjusts unemployment projection

Thursday is the weekly report on jobless claims, which have been holding steady in recent weeks. The numbers are due out at 8:30 AM ET (1230 GMT). are expected to come in at 850,000, which would be a slight tick down from the 884,000 claims the prior week. claims are expected to be in the neighborhood of 13,000, down from 13,385 the previous week.

The four-week average for jobless claims is around 970,000. On Wednesday, the Federal Reserve projected the year-end unemployment rate to be 7.6%, down from an earlier projection of 9.3%. The jobless rate in August was 8.4%.

3. Housing starts boost shares of home builders

for August are estimated to be around 1.48 million compare to 1.49 million the prior month, a positive sign of economic recovery. The report is also due out at 8:30 AM ET (1230 GMT).

Homebuilder stocks jumped more than 3% each on Wednesday and are having a strong year despite the interruptions caused by Covid lockdowns. LGI Homes (NASDAQ:) is up 63% this year, Lennar Corporation (NYSE:) and D.R. Horton Inc (SA:) are up more than 40%, PulteGroup Inc (NYSE:)is up 19% and Toll Brothers Inc (NYSE:) is up 13%.

 

 

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Source link

Show More

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Close