November 2017 General Stock Market Updates

Major indices for the US stock market closed in positive territory in November, with the Dow up 4.0%, the S&P 500 up 2.9%, the NASDAQ up 2.6%, and the Russell 2000 up 3.6% amid generally positive economic news and tax reform optimism.

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Notable initial public offerings (IPOs) during the month of November included:

• “Blank check” company Legacy Acquisition Corp. priced 30 million units at $10 per unit and began trading on the NYSE under the ticker symbol LGC.U on 11/17/17. The company will focus on consumer-focused sectors, including consumer packaged goods, consumer durables, and restaurants.
• Another blank check company, Sentinel Energy Services, listed on the NASDAQ under the symbol STNLU. The company, formed by former Schlumberger executives, raised $300 million, for which it intends to acquire an underperforming energy services business.
• Evoqua Water Technologies Corp. (NYSE: AQUA) began trading on 11/2/17, raising approximately $500 million. The Pittsburgh, Pennsylvania-based company is the largest provider of water treatment solutions in North America.

Notable mergers and acquisition (M&A) announcements this past month included:

• Des Moines-based Meredith Corporation - owner of Family Circle, Better Homes and Gardens, and AllRecipes – agreed to purchase Time, Inc., in an all-cash transaction valued at approximately $3 billion. The deal was made possible in part by the Koch brothers, who pledged $650 million towards the deal.
• Marvell announced it would acquire fellow chip maker Cavium in a $6 billion deal. The combined companies will have revenue of approximately $3.4 billion.
• Roark Capital Group, through its platform Arby’s Restaurant Group, Inc., will acquire Buffalo Wild Wings, Inc., (NASDAQ: BWLD) for $157 per share in cash. The deal is valued at $2.9 billion, including debt.

Major economic news announcements during the month included:

• Consumer confidence reached a 17-year high, a sign Americans are growing more confident in the economy and the labor market. The Conference Board’s Confidence Index rose to 129.5, beating estimates of 124. The reading is the best since November 2000 and is up from 126.2 in October.
• Sales of new homes unexpectedly increased 6.2% to 10-year highs in October. Economists polled by Thomson Reuters estimated a decline of 6% for the month.
• The House passed their version of the Tax Cuts and Jobs Act, and the Senate is set to consider its package after Thanksgiving. Plancorp summarizes key differences between the House and Senate proposals here.