Historically Low Jobless Claims & Strong GDP Results Amid Lower-Than-Expected 4Q17 Corporate Profits
Generally positive economic news, including record low jobless claims, overshadowed weakness in corporate profits in last week’s economic news, and markets became nerved over potential backlash from China regarding a potential trade war.
Last week, there were numerous multi-billion-dollar deals across a variety of industries. Major consolidation efforts occurred within oil & gas, retail REITS, and snack foods. The specialty chemicals and technology industries witnessed near-billion-dollar deals as well.
Cloud-based technologies companies DocuSign and Smartsheet were among notable IPO filings this past week. Within the biotechnology sphere, genetic drug manufacturer Homology Medicines was able to raise $144 million during its initial public offering. Additionally, YETI Coolers canceled its pending initial public offering due to current market conditions.
The Dow Jones Industrial Average (DJIA), S&P 500, and NASDAQ all closed down greater than 2.5% in March, while the Russell 2000 closed up 1.1%. The poor performance of the DJIA, S&P 500, and NASDAQ in March turned the indices into negative territory for the 2018 calendar year so far and resulted in the first quarterly loss since the third quarter of 2015.