Weekly Market Updates: 4/22/19

Waste Management Grows Eastern U.S. Operations by Acquiring Advanced Disposal

​Data supplied by Pitchbook reveals that $14.8 billion in capital was deployed across 31 M&A transactions last week, four deals more and $28.8 billion less capital than the elevated levels of the week prior. The largest deal of the week was Waste Management’s $4.9 billion acquisition of Advanced Disposal, which will help expand the nation’s largest waste collector’s East Coast operations. Also, Canopy Growth announced a deal to acquire Acreage Holdings once cannabis is federally legalized in the U.S.

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Pinterest and Zoom Video Communications Go Public

​According to the New York Stock Exchange, seven companies joined U.S. public markets last week, raising a total of $3.0 billion. Two of the firms – Zoom Video Communications and Pinterest – were a part of the highly anticipated group of companies expected to go public this year. 

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Retail Sales Surge in March while Housing Starts and Manufacturing Face Soft Results

Among economic news last week:

• U.S. retail and food service sales had a sudden spike in March, according to the commerce department, climbing 1.6% during the month to $514 billion. Year-over-year, sales had improved 3.6%, and March’s change is much improved from the month before, when sales had fallen 0.2%. A bustling job market is likely encouraging U.S. consumers to spend more on discretionary items, such as automobiles. Excluding food and gas, the core retail sales climbed 0.9% in the month.

• According to the Census Bureau’s monthly report, housing starts fell markedly, dropping to an annual rate of 1,139,000. That represents a 0.3% decrease from February and 14.2% less starts than the same month in 2018. Land and labor shortages, along with expensive building materials, are limiting builders’ capacity for new home construction. In the coming months, reduced mortgage rates resulting from the Fed’s latest policy decision may help boost sales. It should also be noted that monthly reports for housing starts are subject to wide revisions and swings from month to month.

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• Following two straight months of decline, U.S. manufacturing output remained unchanged in March, leading to the first quarter of falling production since President Trump took office. According to a Federal Reserve report released last week, the weakness in manufacturing output may be associated with a moderation of the broader economy. The effects of the tax cut stimulus package are weakening and a trade war with China continues to disrupt supply chains across the manufacturing sector.