One of the signs of a healthy stock market is the high demand and successful completion of initial IPO. Thanks to the bear market in 2018 and the shock they sent via Wall Street, we have not seen very large IPOs lately.
The shares of Lyft, Inc. (LYFT) debuted on Nasdaq this morning as impatient traders pushed the opening price to $ 87.24 – 21% higher than the IPO's $ 72 per share the company had set for the stock. This increased opening price confirmed that traders were excited about the company's prospects and were starving for new stocks in which to invest. Anyone who wonders if there is still an accumulated search on Wall Street has answered your question today.
paid a price between $ 87.24 and a high price of $ 88.60 in the day, Lyft's shares failed to keep their profits. Shares declined to an average daily value of $ 80 before jumping slightly. New shares declined again, falling to a low of $ 77.29 a day before retiring to $ 77.75.
When analyzing the results of each IPO, it is important to remember that volatility in the early days, weeks, and sometimes even months is normal and expected. While the company behind the stocks is around for some time and has proven financial expertise, this is the first time traders have been able to express their minds about the stock in the only way that really matters: their pocketbooks. The fact that Lyft's shares were not able to stay above the mid-day support level of $ 80 (see Graph for one minute below) tells me that traders are nervous about the potential profit margin somewhere above the IPO price of $ 72. The deterioration at the end is a rarely positive sign of action.
If traders believe the company will use $ 2.3 billion, which has risen today and the stock market stays upward next week, stocks can climb back to new ones. peaks. However, $ 77.29 will be an important level of support to watch next week. If this does not happen, traders may be willing to change Lyft shares throughout the IPO at $ 72.
The S & P 500
mark for the market, but then did not move much. Even if the British Parliament dropped the deal for Prime Minister Theresa May for Brexit for the third time, the Wall Street merchants expressed optimism that a US-China trade deal could be reached, and that the world economy is strong enough to generate strong revenues  The technology sector is responsible for most of the positive movement today – with Micron Technology, Inc. (MU) up 5.06%, Western Digital Corporation (WDC) rose 5.05% and Seagate Technologies Holding PLC (STX) with 4.13% – but the biggest winners of the day were CarMax, Inc. (KMX) and Celgene Corporation (CELG), which rose by 9.61% and 7.88%, respectively.
Now that the S & P 500 detects the new low at 2,785, we will see if it can set a higher peak next week.
We have received confirmation today that the expectations of traders are that the Federal Open Market Comm (FOMC) may reduce the federal funds rate by the end of 2019 can be justified. Bureau of Economic Analysis (BEA) publishes the latest Personal Consumption Expense (PCE) index, which shows that inflationary pressures are weakening, reducing the need for higher interest rates.
The PCE price index, FOMC's Best Inflation Indicator, rose only by 1.37% in the previous month. This is the lowest monthly increase since September 2016 and is well below the 2% inflation target set by the Federal Reserve. However, if inflation slows down too much, FOMC will have to start worrying about the impact that deflationary pressure may have on the US economy and whether it should start lowering interest rates again to fight these risks.
Based on the trend of the PCE Price Index, it appears that the FOMC will have to worry about deflation before it has to worry again about inflation.
Bottom Line – Signs of Hope
The Lift is highly open above the IPO price – even if it's over The rest of the trading session jumped lower – and the bullish boom in the S & P 500 are two signs of the hope that traders are still bullish and want to be even higher, considering the possibility. backed by today's rebound in the University of Michigan Consumer Confidence Report. The confidence index recovered from last month from 93.8 to 98.4, the highest level since last October.
The new home sales rocket again reached 667,000 in March – the highest level since June 2018. reducing the interest rates on the mortgage loans that we discussed.
In the end, it's a big Q1 on Wall Street, and the foundation is set for long-term progress in the second quarter.
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