Sep 25, 2023
A couple of weeks ago, we highlighted how IPO issuance had finally begun to ramp up after a complete drought since late 2021. Arm Holdings (ARM) was one of the stocks to kick off that new slate of issuance. In a year of massive outperformance for its industry, the British semiconductor designer priced with the largest market cap of recent IPOs, currently valued at $52 billion. After initially pricing at $51/share, ARM exploded into the high $60s in its first two days of trading on the secondary market, but it gave up all of its post-IPO pop by the end of last week and was right back down near $51.
Grocery delivery app Instacart (CART) was the next offering. Debuting last Tuesday, CART similarly traded well above its IPO price of $30 in its first day of trading, but those high prices were only temporary. Like ARM, Instacart also gave up all of its post-IPO pop to trade right back down to its IPO price by the end of last week.
That left marketing automation platform Klaviyo (KVYO) as the most recent major IPO of the week. Similar to ARM and CART, the stock opened for trading well above its IPO price of $30. Shares then plummeted on an intraday basis to nearly touch its IPO price, but unlike ARM and CART, we saw some buyers step into KVYO towards the end of last week.
Sep 21, 2023
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Looking for deeper insight into markets? In tonight’s Closer sent to Bespoke Institutional clients, we begin with some commentary with the latest news from Capitol Hill and the new highs in Treasury yields (page 1). We then check in on the record low housing inventories and show just how bad home affordability has gotten (page 2). Next, we update on the current account (page 3) before closing with a rundown of the latest 10y TIPS reopening (page 4).
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Sep 21, 2023
Among the reasons given for yesterday’s “hawkish hold” at the FOMC meeting was that employment readings “remain strong”. This morning’s release of weekly jobless claims backed that up. Seasonally adjusted initial claims have begun to fall back down towards recent lows in the past few months, and today’s print brought it to a new short-term low of 201K. That compares to expectations for an increase of 4K up to 225K. The recent decline brings claims down to the lowest level since January and just 21K above the multi-decade low reached almost exactly one year ago.
On a non-seasonally adjusted basis, claims are also very healthy. Claims were little changed week over week, remaining near the annual low. Relative to the comparable week of the year in years past, the most recent reading is above that of last year, but right in line with levels from 2018 and 2019. Entering Q4, jobless claims will begin to face some seasonal headwinds and will likely head higher through the end of the year.
As for continuing jobless claims, recent trends have been much calmer as they have not seen any sort of dramatic swing lower. That’s not to say, however, that continuing claims have not improved. The reading has continued to trend lower and at 1.662 million it is at the lowest level since January.
