Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Top 5 Things to Know in the Market on Friday

Economy Sep 27, 2019 12:46
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. -- Flopping IPOs, paradise postponed for chipmakers and Delta is spreading its wings in South America. Meanwhile, the euro hits a new two-year low against the dollar and the Trump impeachment process continues to cast a long shadow. Here's what you need to know in financial markets on Friday, 27th September.

1. Endeavor pulls IPO, Peloton (NASDAQ:PTON) flops, We Company cuts

The IPO market is showing increasing signs of stress after talent agency Endeavor Group pulled its prospective deal, while Peloton (NASDAQ:PTON), the maker of high-end exercise equipment, fell 11% on its debut.

Elsewhere, We Company started to address the bloated cost structure that scared investors off its proposed deal last week. According to the Wall Street Journal, it’s not only considering job cuts at its operating company WeWork, it’s also – gasp! – going to sell the Gulfstream private jet of founder Adam Neumann, who was ousted as chief executive earlier this week.

2. Trump’s whistleblower travails

President Donald Trump threatened retribution against the whistleblower whose report was released Thursday by the House Intelligence Committee. Trump branded the whistleblower, who has been identified as a CIA agent seconded to the White House as “a kind of spy” in a closed-door meeting reported by Bloomberg.

Markets remain unsure how to react to the impeachment process which was launched by House Speaker Nancy Pelosi earlier this week. The Congressional arithmetic suggests that Trump should easily resist impeachment in the Senate, which is controlled by his party.

However, doubts about the willingness of the Republican Party to stick by Trump are circulating. George Conway, husband of White House strategist Kellyanne Conway, tweeted Thursday: "There may be Republican senators who won’t say a word until the moment they say “guilty” when the roll is called at the end of an impeachment trial."

3. Wall Street set for modest bounce

U.S. stock markets are set to open a little higher, recouping some of the losses caused by political concerns on Thursday.

By 6 AM ET, Dow futures, the S&P 500 futures contract and Nasdaq 100 futures were all up 0.2%. That leaves them on course for a loss of between 0.8% and 1.2% in a week where there hasn’t been enough encouraging news on the trade front to offset increasing concern about the U.S. domestic political outlook.

Chipmaker stocks may be set for a rocky opening after weak guidance from Micron Technology (NASDAQ:MU) late Thursday caused it to slide 7% in after-hours trading.

Delta Air Lines (NYSE:DAL) will also be in focus, after it said it will buy 20% of LATAM Airlines (NYSE:LTM) Airlines to expand its presence in Latin America. It’s paying $1.9 billion up front and will also invest $350 million “to support the establishment of the strategic partnership,” notably through the purchase of Airbus A350 aircraft.

4. Europe’s economy goes from bad to worse

The euro and sterling continue to slide against the dollar, as the risk of a disorderly Brexit re-emerges and short-term data continue to show a slowdown with no end in sight.

The pound fell Friday morning in Europe after Michael Saunders, seen as the biggest hawk on the Bank of England’s Monetary Policy Council, said persistently high uncertainty warranted lower interest rates – if the U.K. can avoid a no-deal Brexit.

The euro, meanwhile, continued to be depressed by weak business confidence surveys from Italy and Spain, while disappointment over the lack of fiscal stimulus from Germany is overshadowing tax cuts from France in its 2020 budget. It hit a new two-year low against the dollar of $1.0905 overnight.

5. Can U.S. data paint a brighter picture?

Another raft of domestic economic data over the course of the day will show how successful the U.S. economy has been in disconnecting itself from a global slowdown.

Durable goods orders and personal consumer expenditures for August will be released at 8:30 AM ET (1230 GMT), while the University of Michigan will give its final reading for consumer sentiment in September.

Baker Hughes will say at 1 PM ET whether there’s any turnaround in oil drilling across the U.S. Last week’s figures showed the lowest number of active oil rigs in over two years.

Top 5 Things to Know in the Market on Friday

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email