Weekly Market Updates: 4/8/19

Transportation Space Highlights Last Week’s M&A Activity

Data from Pitchbook shows that $15.2 billion of capital was invested across 29 M&A deals last week, $4.4 billion less capital on two more deals than the previous week. The largest two deals during the week were Stonepeak Infrastructure Partners’ $3.6 billion LBO of Oryx Midstream Partners and the $2.44 billion acquisition of AmeriGas Partners by UGI Utilities. AmeriGas is a publicly traded propane distributor, and Oryx is a natural gas collection group. The transportation space was an active sector, as A&S Kinard and Buckler Transport were acquired by Day & Ross Freight; TFI International acquired Nebraska-based Aulick Leasing and its manufacturing business, ShurAul; and Providence Equity Partners acquired transportation software provider GlobalTranz.

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iHeartMedia Files for IPO amid Finalization of Bankruptcy Proceedings

​According to the New York Stock Exchange, four companies joined U.S. public markets last week, all on the Nasdaq exchange. The four companies – Ruhnn Holdings, NGM Bio, Silk Road Medical and Tradeweb Markets – raised a combined $1.6 billion, with most of it going to the fixed-income trading platform Tradeweb. Other news includes Slack announcing an expected date for its IPO sometime in June or July and iHeartMedia filing for a $100-million IPO as it emerges from bankruptcy restructuring. 

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Payroll Additions in March Rebound after Soft February Report

Among economic news last week:

• The U.S. labor market rebounds from the small gain of 20,000 jobs in February, adding 196,000 jobs in March. Economists had estimated a gain of 175,000 after the dismal February reading. The payroll additions were broad-based as well, impacting a variety of sectors. Healthcare, technical services and food and drinking establishments saw significant gains, while manufacturing saw a slight loss of 6,000 in payrolls. The unemployment rate remained at 3.8%.

• Retail spending in America fell unexpectedly during the month of February, further proving theories of slowing domestic growth. Month-to-month, retail sales dropped 0.2% as Reuter’s poll forecasted retail sales increasing 0.3%. January retail sales were revised upward to 0.7% growth, up from 0.2%. Consumers purchased less furniture, clothing, food, electronics, appliances, building materials and gardening equipment during the month. Core retail sales - retail sales excluding food and energy - declined 0.2% as well.

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• Major automakers revealed their March monthly and first quarter sales, which indicated a slow start to 2019. Econoday reports 17.5 million autos were sold in the U.S. in March and Ford and GM, who report on a quarterly basis, both reported first-quarter sales declines. However, much of the decline and expected weak sales for 2019 are a result of weakening passenger car sales, while SUV and pickup sales continue to strengthen as consumer preferences shift. Automakers have been able to generate larger margins on large vehicle sales.