Investors rally behind Wall Street's latest IPO

Investors rally behind Wall Street’s latest IPO

The Dow Jones Industrial Average rallied the most in over a month as traders cheered the revival of Wall Street’s IPO market and a decent batch of economic data.

The Dow was up for the first day in three, climbing 331.58 points, or 0.96 per cent to 34,907.11. The 30-stock index closed above its 50-day moving average for the first time since Sept. 1. It was also the blue-chip average’s best day since Aug. 7.

The S&P 500 gained about 0.84 per cent to 4,505.10, while the Nasdaq Composite moved 0.81 per cent higher to 13,926.05.

Arm shares surged 24.7 per cent after the chip design company started trading Thursday. Investors hope the biggest tech offering of the year could kickstart a sleepy IPO market. Arm’s initial public offering was priced at $51 a share Wednesday. In its first day, it closed at $63.59 a share.

In addition, investors digested a raft of economic reports pointing to tamer core inflation data and a resilient consumer.

August’s producer price index showed core PPI was held in check last month. Core PPI, which excludes food and energy, increased 0.2 per cent, in line with what was anticipated by economists polled by Dow Jones. However, the headline number rose 0.7 per cent, more than the expected 0.4 per cent increase.

That comes after August’s consumer price index on Wednesday showed core CPI, which excludes food and energy, came in slightly above expectations on a monthly basis.

August retail sales came in better than expected, jumping 0.6 per cent against a 0.1 per cent increase expected by economists. Excluding autos, retail sales rose 0.6 per cent last month, more than the forecasted 0.4 per cent increase.

While the Federal Reserve is expected to stay on hold at its September policy meeting, the European Central Bank on Thursday hiked rates by an expected quarter percentage point. However, the ECB noted inflation is easing and hinted it could be near the end of its rate-hiking campaign.

In the US, Fed funds futures pricing data shows a 97 per cent likelihood of rates remaining unchanged next week, according to the CME FedWatch Tool.

Elsewhere, Adobe is expected to post quarterly results after the market close Thursday.

Turning to US sectors, all closed high overnight. Real Estate was the best performer, whilst Health recorded the fewest gains.

Futures

The SPI futures are pointing to a 1.2 per cent gain.

Currency

One Australian dollar at 7:25 AM was buying 64.37 US cents.

Commodities

Gold added 0.2 per cent. Silver fell 0.81 per cent. Copper added 0.75 per cent. Oil gained 1.85 per cent.

Figures around the globe

European markets closed higher. London’s FTSE gained 1.95 per cent, Frankfurt added 0.97 per cent, and Paris closed 1.19 per cent higher.

Turning to Asian markets, Tokyo’s Nikkei gained 1.41 per cent, Hong Kong’s Hang Seng added 0.21 per cent while China’s Shanghai Composite closed 0.11 per cent higher.

The Australian sharemarket closed 0.46 per cent higher at 7,187.

Ex-dividends

Ariadne Australia (ASX:ARA) is paying 0.25 cents fully franked
Carsales.Com Ltd. (ASX:CAR) is paying 32.5 cents 50 per cent franked
Duratec (ASX:DUR) is paying 3 cents fully franked
Pental Ltd (ASX:PTL) is paying 1 cents fully franked
Saunders Intl Ltd (ASX:SND) is paying 2 cents fully franked

Dividends payable

Ashley Services Group Ltd (ASX:ASH)
Capral Ltd (ASX:CAA)
Estia Health Ltd (ASX:EHE)
Fenix Resources Ltd (ASX:FEX)
IPH Ltd (ASX:IPH)
Maxiparts Ltd (ASX:MXI)
Mitchell Services Ltd (ASX:MSV)
Pinnacle Investment Management Group Ltd (ASX:PNI)
Platinum Asset Management Ltd (ASX:PTM)
SG Fleet Group Ltd (ASX:SGF)
SHAPE Australia Corp Ltd (ASX:SHA)
Whitehaven Coal Ltd (ASX:WHC)

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.

Disclaimer

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