US Stock Market Overview – Stocks Close Mixed, Uber Announces IPO

US stocks were mixed on Thursday ahead of key earnings data scheduled to be released next week. The big banks are on the clock, and will likely help determine the short term direction of the large cap indices. Sectors were mixed, with Healthcare and Energy weighing on the broader markets and Industrials bucking the trend. US yields moved higher on Thursday with the 10-year yield rising back above the 2.5% level. Stronger than expected US PPI and a 50-year low in Jobless claims put upward pressure on yields and downward pressure on stocks. The Dow and the Nasdaq finished the seession in the red which the S&P 500 rose 0.11%.

Jobless Claims Drop to 50-year Low

The Labor Department reported on Thursday that unemployment benefits dropped to a 50-year low last week, pointing to sustained labor market strength. Initial claims 8,000 to 196,000 for the week ended April 6, the lowest level since early October 1969. Claims have now declined for four straight weeks. Expectations were for claims to rise to to 211,000 in the latest week. The four-week moving average of initial claims, fell 7,000 to 207,000 last week, the lowest level since early December 1969.

PPI Rises but Remains Subdued

US wholesale prices increased to a 5-month high. The PPI index increased by 0.6% in March, lifted by a surge in gasoline. That was the largest increase since last October and followed a 0.1% gain in February.  PPI increased by 2.2% year over year after rising by 1.9% in February. Expectations were that  PPI would climb 0.3% in March and increase 1.9% year over year. Core PPI, which excludes food and energy was unchanged last month after ticking up 0.1% in February. Core PPI increased 2.0% in the 12 months through March.

Fed’s Clarida Said the the US slowing, but expansion the will Hit a Record

The U.S. is economy likely slowing from its strong rate of growth in 2018, according to the Feds Clarida. The Vice Chair said that the economy is slowing as global growth has weighed on the prospects of higher US growth.  Coupled with “muted” inflation, Clarida said that outlook justified the Fed’s current policy stance, with rates roughly at a level that neither encourages nor discourages investment and spending and a “patient” approach to any further rate moves.

Uber Aims for 100-Billion Public Valuation

Uber Technologies Inc. is aiming for a valuation on its initial public offering of as much as $100 billion, below previous expectations. Uber recently provided documentation to holders of its convertible notes that sets a potential price range of $48 to $55 a share. That would equate to an aggregate valuation of between $90 billion and $100 billion. This comes after LYFT IPO which came with lots of fan fare. The price of Lyft has tumbled from the IPO price of $72 up to $87 and then down to $60.