Instacart Shares Jump in Stock Market Debut
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Instacart’s shares jumped in their trading debut, another promising sign for a reawakening IPO market. Shares of the grocery-delivery company opened for trading Tuesday at $42 a share on the Nasdaq exchange under the ticker CART, up 40% from its IPO price of $30 a share. Instacart’s initial public offering had been in the works for years, and Chief Executive Fidji Simo said in an interview that the company’s main goal with the offering is to provide liquidity to its employees. Instacart already has been operating like a public company, she said, and following the IPO it will continue to look for acquisition targets and other ways to build its retail support technology. “We will continue to deepen and expand all of the services that we launched with grocers,” Simo said. Instacart shares traded around $38 in afternoon trading, as the broader market declined. That gave the company a valuation of more than $12.6 billion on a fully diluted basis.
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After a weak start and a subsequent recovery that resulted in a brief spell in positive territory Tuesday morning, the Switzerland market turned weak and eventually ended the day's session on a negative note. The benchmark SMI ended with a loss of 21.91 points or 0.2% at 11,068.70. The index, which dropped to 11,036.45 at the start, advanced to 11,121.67 before turning weak. Richemont ended 1.79% down. Sonova, Geberit, ABB and Alcon lost 1.1 to 1.4%. Kuehne & Nagel, Sika, Givaudan and Roche Holding also ended weak. Partners Group climbed about 2.1%. Lonza Group lost 1.37%, while Swiss Life Holding and Swiss Re both shed about 1.1%. Among the stocks in the Mid Price Index, SGS ended 3.4% down and Straumann Holding lost 2.17%. Belimo Holding, Tecan Group, VAT Group, Georg Fischer, Bachem Holding and Swatch Group ended lower by 1 to 2%. AMS rallied nearly 5.5%. Meyer Burger Tech gained 1.65%, while Barry Callebaut and BKW both ended down 1.3%. In economic news, Switzerland's foreign trade surplus increased in August as exports rose faster than imports, data from the Federal Customs Administration showed on Tuesday. The trade surplus rose to CHF 3.21 billion in August from CHF 2.55 billion in the previous month. In real terms, exports rebounded 5.9% monthly in August versus a 4.9% decline in July. Similarly, imports logged a 1.5% gain in August, in contrast to a 1.8% gain in July.
European stocks ended on a mixed note on Tuesday after a somewhat volatile session as investors digested the data on eurozone inflation, and looked ahead to UK inflation report, and policy meetings of the Federal Reserve, the Bank of England and the Bank of Japan. The Swiss National Bank, the Norges Bank and the Riskbank are also scheduled to announce their monetary policies during the course of this week. Headline annual inflation in the U.K. is seen rising to 7% in August, from 6.8% in the previous month. Core inflation is however seen edging down to 6.8%, from 6.9% a month earlier. Given the inflationary situation, the Bank of England is widely expected to raise rates by another 25 basis points in the review to be announced on Thursday. The pan European Stoxx 600 edged down 0.04%. The U.K.'s FTSE 100 and France's CAC 40 edged up 0.09% and 0.08%, respectively, while Germany's DAX ended 0.4% down, and Switzerland's SMI finished lower by 0.2%. Among other markets in Europe, Austria, Belgium, Norway, Portugal, Spain and Turkiye ended higher. Denmark, Finland, Greece, Iceland, Netherlands, Poland, Russia and Sweden closed weak. In the UK market, Hargreaves Lansdown rallied nearly 5%. TUI surged 2.75%. 3i, Lloyds Banking Group, WPP, Persimmon, Phoenix Holdings, Centrica, Land Securities, Smurfit Kappa Group, Associated British Foods, HSBC Holdings, ICP, BP and ITV gained 1 to 2%. Kingfisher plunged more than 12%. Burberry Group ended lower by 4%, while Just Eat Takeaway.com, Antofagasta, Easyjet, Entain, Halma, Croda International, Scottish Mortgage, BT and Intertek Group shed 1.5 to 3%. In the German market, Vonovia gained 3.6%. Volkswagen, HeidelbergCement, Deutsche Boerse, E.ON, Fresenius, Continental, Beiersdorf and BMW advanced 1 to 2.2%.
Bond yields reached their highest levels since at least 2007, putting pressure on stocks ahead of the Federal Reserve's next interest-rate decision. The specter of high bond yields lasting for an extended period dug into stocks in early trading Tuesday, though shares of tech and healthcare companies recovered later in the day. The benchmark S&P 500 slipped 0.2%, the Dow industrials lost 0.3% and the Nasdaq Composite fell 0.2%. Shares of Amazon.com fell 1.7%, dragging indexes lower. Walt Disney's plan to spend $60 billion to expand its theme parks and other ventures, meanwhile, pulled its stock down 3.6%, weighing on the blue-chip Dow. Few investors expect the U.S. central bank to raise rates from the target range of 5.25% to 5.5% at Wednesday's meeting. Still, fresh economic data rattled investors on Tuesday: The lowest number of monthly housing starts since June 2020, coupled with hotter-than-expected inflation in Canada, fanned fears that resilient price pressures will prompt the Fed to increase rates later this year. Fed officials will release their latest quarter-by-quarter U.S. economic outlooks for the next few years on Wednesday. That update will help shape investors' expectations for interest rates in 2024. Stocks were hit across the board on Tuesday. Consumer discretionary stocks suffered, pulled lower by Amazon.com but also shares of MGM Resorts, AutoZone, Starbucks and others. Shares of Cboe Global Markets jumped 2.7%, closing at a record high. The exchange operator's chief executive officer Edward Tilly resigned after failing to disclose "personal relationships with colleagues," the company said.
Losses are recorded on the stock exchanges in East Asia and Australia on Wednesday. On the Japanese market, the Nikkei fell by 0.5 per cent to 33,066 points, pressured mainly by electronics and gaming stocks. In Shanghai, the benchmark index is down 0.3 per cent. While there are signs that the Chinese stock market may have bottomed out, says James Wang, head of China strategy at UBS, "the divergence between fundamentals and stock prices could be the result of weak sentiment that needs time to turn around".
The U.S. 10-year Treasury yield finished at 4.366%, its highest level since 2007. It rose from 4.318% on Monday. The 2-year yield climbed to 5.109%, its highest since 2006, from 5.062% Monday, as bond prices fell.
JPM raises the DHL target to EUR36.40 (36.20)/Underw. – Trader
Dt. Bank lowers the Barry Callebaut target to CHF 1,900 (2,300) – Buy
Dt. Bank lowers the Meyer Burger target to CHF 0.78 (0.84) – Buy
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