Page 25 - ARUBA TODAY

BUSINESS Friday 21 June 2019
A25

US stocks climb, sending S&P 500 within range of a new high

By ALEX VEIGA Hormuz could be compro-
Associated Press mised. Iran's Revolutionary
Gains in technology and Guard said it shot down a
energy companies helped U.S. drone on Thursday over
drive stocks broadly higher Iranian airspace. The drone
on Wall Street Thursday af- shooting follows last week's
ternoon, nudging the S&P attack on two oil tankers
500 closer to a new high. near the Gulf of Oman. The
The benchmark index was spike in oil prices sent en-
hovering around the record ergy sector stocks broad-
close it reached April 30. A ly higher. Noble Energy
strong rebound for stocks gained 5.9%.
this month has erased most Bond yields continued to
of the S&P 500's losses from slide a day after the Feder-
May, when jitters over the al Reserve signaled that it is
escalating trade conflict prepared to cut its bench-
between the U.S. and Chi- mark interest rate if needed
na knocked the market to shield the U.S. economy
into a 6.6% dive. from trade conflicts or oth-
The market's recovery er threats. While the cen-
gained momentum this tral bank left interest rates
week as investors became unchanged, investors are
more hopeful that Wash- betting on at least one in-
ington and Beijing could Trader Joseph Lawler works on the floor of the New York Stock Exchange, Thursday, June 20, 2019. terest rate cut this year.
eventually resolve their Associated Press The yield on the 10-year
damaging trade war. Trad- Treasury note fell to just
ers have also become more or 0.7%, to 26,675. Big gains was 0.5% higher. pany reported solid finan- under 2%, the lowest lev-
confident that the Federal for Boeing, 3M, and Home Major stock indexes in Eu- cial results. Mastercard rose el since November 2016.
Reserve stands ready to Depot helped drive the rope also rose. 2.3%. The decline in bond yields
stabilize economic growth. 30-stock index higher. Technology stocks ac- Crude oil prices surged weighed on financial
The S&P 500 was up 0.6% as The technology-heavy counted for a big share of 5.4% as tensions between stocks. Lower bond yields
of 1:46 p.m. Eastern Time. Nasdaq composite gained Thursday's gains. Oracle led the U.S. and Iran intensified, pull down the interest rates
The Dow Jones Industrial 0.5%, while the Russell 2000 the sector, climbing 7.6% stoking fears that oil ship- that banks charge on
Average rose 171 points, index of smaller companies after the software com- ments through the Strait of loans. q

Slack is latest tech company to go public, with a twist

By MAE ANDERSON with a specific topic, rather which researches IPOs, ing for Uber," she said. 50% year-over-year, total-
Associated Press than starting an email string said a direct listing saves "These very large IPOs can ing $590 million to $600 mil-
NEW YORK (AP) — Shares of about a subject. Slack says the company underwriting have a rocky road when lion.
work messaging platform 600,000 organizations in fees, but it means the com- they enter the market." Slack is the second ma-
Slack rose after it started more than 150 countries pany needs a strong inves- Slack said earlier in June jor tech company to start
trading under the ticker use Slack. That includes tor relations program since that for the February-April trading with a direct listing;
"WORK." more than 10 million daily initial shares aren't being quarter, the company lost Spotify did so in April 2018.
The San Francisco compa- active users, who collec- sold at a discount to attract 26 cents per share as rev- More than a year later,
ny's shares debuted on the tively spend more than 50 buyers. enue jumped 67% to $134.8 Spotify's shares are trading
New York Stock Exchange million hours in active use "It's always a little challeng- million. at $147, about the same
at $38.50 and rose $1.70, or of Slack in a typical week, ing to get this kind of value For the fiscal year ending price it debuted at.q
4.4%, to $40.20 in midday on either a free or paid sub-
trading. scription plan, according to
Slack's initial public offer- the company. By contrast,
ing is using an unusual ap- Facebook has more than 2
proach known as a direct billion users.
listing. In such cases, a Slack's listing is the latest
company doesn't hire un- in several highly anticipat-
derwriters or sell new shares ed tech IPOs. Rideshare
to raise money; it simply lists companies Uber and Lyft,
existing shares. While there video conferencing com-
is no set price for the list- pany Zoom Video Commu-
ing, Slack said in a regula- nications and digital scrap-
tory filing that the volume- booking site Pinterest have
weighted average price of all gone public in recent
shares that changed hands weeks.
in the private market from They haven't all been suc- Slack CEO Stewart Butterfield poses for photos outside the New
February through May was cesses. Uber's IPO in May York Stock Exchange before his company's IPO, Thursday, June
$26.38. was the most highly an- 20, 2019.
Slack aims to replace tradi- ticipated debut, but it hit Associated Press
tional work communication a few potholes on opening
like email with its own mes- day, closing down 8%.
saging platform. Users start Kathleen Smith, principal into the market elegantly. in Jan. 31, 2020, it expects
"channels," or a group chat at Renaissance Capital, We know it was challeng- revenue to grow 47% to