Stocks were mixed on a big day for IPOs, with Etsy’s share price more than doubling on the first day of trading.
First, the scoreboard:
- Dow: 18,109, -3, (-0.02%)
- S&P 500: 2,105, -1, (-0.06%)
- Nasdaq: 5,007, -4, (-0.1%)
And now, the top stories on Thursday:
- Etsy had a huge first day on the market. Shares reached an intraday high of $US35.74, more than double the pricing Wednesday night of $US16 a share. Based on the opening price, the Brooklyn-based maker of handcrafted and vintage goods is valued at over $US3.7 billion. Ahead of the IPO, Brean analysts rated the stock a “Buy” and wrote: “We give Etsy a score of 87 out of 100 for our investment framework of the six key areas necessary to be successful in the future of retail (social, international expansion, mobile, payments, logistics, and enabling technology).”
- Netflix also had a huge day, rallying by more than 18% to an all-time high of $US564.73 per share. On Wednesday, the company reported first quarter results, which showed it added 2.28 million US subscribers and 2.6 million international subscribers, smashing forecasts. Analysts at FBR & Co. hiked their price target to $US900, reflecting a nearly 70% upside from where it was priced pre-market; that was one of several upgrades by analysts today.
- Panera Bread shares rallied by as much as 11% following its announcement of share buybacks worth $US750 million in its earnings statement Wednesday. The company also plans to re-franchise 73 company-owned restaurants.
- In economic data, initial jobless claims rose more than expected last week to 294,000. Expectations were for claims to total 280,000, down from 281,000 last week. Last week’s four-week moving average of claims fell to the lowest since June 2000. And, the latest reading on regional manufacturing activity from the Philadelphia Federal Reserve beat expectations, coming in at 7.5. Expectations were for the report to show a reading of 6, up from 5 in March, indicating continued expansion in economic activity in the region.
- Pacira Pharmaceuticals tanked by as much as 12% to the lowest level in 10 months after it disclosed a subpoena from the Department of Justice. The government wants documents related to how it marketed Exparel, a post-surgery painkiller. Back in September, the Food and Drugs Administration warned about its marketing. Pacira has a market cap of around $US3 billion. It said it will cooperate with the DoJ.
- Goldman Sachs and Citigroup reported Q1 earnings. Goldman crushed expectations all round, adjusted earnings per share of $US6 versus $US4.26 expected, on revenues of $US10.62 billion versus $US9.31 billion forecast. Its equities and investment banking businesses also beat expectations. Citigroup beat on earnings, posting $US1.52 per share ($US1.39 expected) but missed on revenues with $US19.80 billion ($US19.83 billion expected.)
- Shares of Party City jumped by more than 20% on its market debut on Thursday. Party City offered 21.9 million shares with an additional 3.3 million shares for over-allotments, expecting to raise about $US372 million , valuing it at nearly $US2 billion, according to Reuters. Virtu Financial soared nearly 20% to over $US22 per share at its debut, from an inital pricing of $US19.
DON’T MISS: Etsy just missed out on about $US230 million »