Some highlights of this past week’s news in business
- The Dow Jones reported gains for the week as it closed at 20,663 points, a positive increase of 173 points (+0.85%). The markets rebounded from last week’s fall after House Republicans abandoned their health care bill to replace Obamacare. This move questions the Trump Administration’s ability to accomplish its ambitious pro-growth agenda. However, it also allows congress to shift their focus towards other legislative goals such as tax reforms and infrastructure spending. The latter is viewed by many experts to have bi-partisan support. Treasury Secretary, Steven Mnuchin, stated that his goal is to achieve personal and corporate tax change by congress’ summer recess. If successful, this would be the first major U.S. tax reform since the Regan Administration in the 1980’s.
- For the week ending March 25th, U.S. jobless claims decreased by 3,000 from the previous week’s level to a total of 258,000 initial claims. This decrease falls far from experts’ estimate of 247,000, thereby challenging the reliability of one of the leading economic indicators.
- Brent Crude oil prices rebounded this week as the cost of oil per barrel rose above the $50 benchmark to $50.60 (Nymex). This positive rally is a direct result of further OPEC cooperation from Libya and Iraq as well as from non-OPEC member countries like Canada. This brings total cuts to 95% compliance for the month of March.
- This past Friday, investors experienced a plethora of IPOs as well as announcements from several highly-sought after companies of plans to take their firms public. Five companies including Frontier Airlines, Cloudera, Carvana, Emerald Expositions Events, and China Rapid Finance all filed paperwork to go public. These deals represent a wide array of industries, indicating some positive U.S. economic growth.
- Additionally, the millennial internet company, BuzzFeed, has initiated plans to go public next year. What started out as a quiz-making cat-video-producing company has taken the news media by storm as it now has dozens of foreign correspondents working as investigative journalists. The company even reported several election-time events (more) that went viral, which helped to lay the foundation for their news-worthiness and credibility.
- Lastly, the nation’s largest meal kit company, Blue Apron, has hired bankers to lead their public offering scheduled for later this year. The company has selected Goldman Sachs, Morgan Stanley, and Citigroup as its lead advisers. In 2015, the company was valued as high as $2 Billion after its round of funding in June. The company is famous for delivering all the ingredients consumers need to their doorstep; allowing them to save time on grocery shopping.A standard Blue Apron ingredients’ box
Independent Business Blogger