Marketbites: Cava Stock Soars
Updated: Jun 22
MARKET PERFORMANCE:
Portfolio Manager Commentary:
The Dow Jones Average rallied more than 400 points yesterday and the S&P 500 touched a fresh 13-month high, as investors bet the Federal Reserve was close to done raising rates after the central bank this week paused its rate-hiking campaign following 10 consecutive increases. Bond yields were lower, while tech stocks continued to lead the market upswing — in line with the trend on Wall Street in 2023. Meanwhile, shares of Mediterranean restaurant chain Cava soared as much as 117% in its market debut Thursday. The company’s stock closed at $43.78 per share, up from its opening trade of $42 per share. Its closing price gives it a market value of $4.88 billion and makes it the top-performing IPO this year for companies valued above $500 million.
“The key question for the market [now] is, can value and cyclical stocks catch up to growth and tech?” said Dylan Kremer, co-chief investment officer at Certuity. “If it does, then that momentum has the ability to help grind the market higher.” In tech, shares of Microsoft and Oracle were higher with gains 3.1% and 3.9%. Alibaba stock climbed 3.1%.
Moving forward, Powell insisted that the central bank will likely raise rates further this year, and said the Fed will remain data dependent on a month-by-month basis. Additional economic data releases yesterday morning gave investors and policymakers better insight on the strength of the labor market and consumer spending. Weekly jobless claims numbers were slightly above estimates at 262,000 compared to a Dow Jones estimate of 245,000, while retail sales ticked up 0.3%.
Chart of the Day:
Uber’s international reach has long been considered a competitive advantage over more U.S.focused Lyft. Uber has invested billions of dollars in its global expansion plans and expressed a goal of having all the world’s taxis listed on its app by 2025. It concluded a deal last year to list all New York City taxis on its app and has built a significant share in the U.K., Latin America and some other regions. Still, some countries pose a challenge. Uber does business in more than 70 countries. Two—the U.S. and Canada—account for nearly three-fifths of its revenue.
Source: WSJ
What else is happening:
Cava stock soars in market debut - read here
When AI overrules the nurses caring for you - read here
China to embark on major stimulus to revive economy- read here
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