September 15 Market Update
The S&P 500 climbed 0.86% in early afternoon trading in New York, hovering around 3,413. The NASDAQ rose 159 points to 11,216 while the Dow Jones also rose 102 points to 28,096.
The S&P 500 is down about 2.5% in September, but is up more than 10% for the quarter. The tech-heavy NASDAQ is up about 11.6% for the quarter.
Investors cheered a number of tech mergers and positive economic news from China, as Chinese retail sales returned to pre-coronavirus levels.
Silicon Valley darling Snowflake is set to price its IPO above its expected range of $100 to $110 per share, a valuation of about $30 billion. That’s more than double the private market value earlier this year of the cloud-based data management company.
Kraft-Heinz announced plans to cut $2 billion on costs over the next five years, and will use savings to re-energize certain brands, increasing overall marketing spend by 30 percent.
Yields on 10-year Treasury notes ticked up slightly to 0.684%.
U.S. industrial production rose for the fourth month in a row in August, albeit at a much slower pace than earlier in the summer, a sign that the manufacturing recovery is losing steam.
The VIX index, the market’s “fear gauge” fell almost 5 percent to 25.59.
Any opinions are those of Burke Koonce and not necessarily those of Raymond James. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Burke Koonce is a financial advisor at Raymond James & Associates, Inc., member New York Stock Exchange, member SIPC. www.raymondjames.com/burkekoonce