Weekly Market Updates: 3/11/19

Mergers & Acquisitions: Apollo Global Management Acquires Direct ChassisLink

​Pitchbook data reveals that there were 27 M&A transactions last week for total invested capital of $5.03 billion, $27.3 billion less than last week across 10 less deals. Apollo Global Management’s $2.5 billion leveraged buyout of Direct ChassisLink was the largest deal of the week. Publicly traded pharmaceutical manufacturer GTx, Inc. will be acquired by Oncternal Therapeutics in a reverse merger for an undisclosed amount.

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Two Companies Raise Roughly $200 Million through Initial Public Offerings

Last week, Shockwave Medical, a medical device manufacturer for cardiovascular health, and Futu Holdings Limited, a Chinese financial brokerage for overseas trading, completed their initial public offerings, raising approximately $200 million combined. 

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U.S. Adds a Lackluster 20,000 Jobs but the Housing Market Shows Strong Signs of Growth

Among news last week:
 

• Job growth came to a sudden halt in February, with the labor market adding only 20,000 jobs while the unemployment rate fell to 3.8% from 4.0% in January. The growth in payrolls is the lowest since September 2017, and economists had projected modest job growth of 180,000. According to Bloomberg, the shortfall in payrolls this month may be due to weather effects. However, as economic growth slows into this year, a steady moderation in job gains is to be expected.

• According to the Commerce Department last Wednesday, sales of new homes rose 3.7% in December to a seasonally-adjusted 621,000, closing out a weak year for housing. Economists had expected sales to decline to 605,000 from a revised 599,000 in November. Overall, a key takeaway from the report is that sales are rebounding from a low of 549,000 in October. An increase in mortgage applications from last fall is beginning to work into the sales figures, leading to the increases the last two months.

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• Following new home sales, U.S. housing starts increased in the first month of 2019, posting an 18.6% increase from December to 1.230 million units. Economists were expecting a 9.5% increase. The measure can be volatile from month to month and is subject to revisions; however, a 4.5% year-over-year increase in single-family units is a promising sign of the upward trend in the housing market. Permits for new buildings of five or more units were up 4.8% from December, but down 2.1% for single-family units.

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