Dow Jones gains on Boeing, recovery hopes

A jump in Boeing shares lifted Wall Street on Wednesday, with investors remaining optimistic about an economic rebound from a coronavirus-led slump amid continuing social unrest in the country.

Boeing Co rose 5.5 per cent and was the top boost to the blue-chip Dow Jones index after billionaire investor Daniel Loeb’s Third Point said it took a stake in the planemaker.

Microchip Technology Inc surged 10.5 per cent after the chipmaker raised its forecast for current-quarter sales and profit as it begins making up for lost production due to the pandemic.

Data on Wednesday showed signs of stabilization in the domestic labor market after the ADP National Employment Report said private employers laid off another 2.76 million workers, lesser than an expected 9 million job losses.

The data comes ahead of the more comprehensive jobs report due on Friday.

Supporting the mood further was the Institute for Supply Management’s (ISM) reading, which showed US services industry activity pushed off an 11-year low in May.

The S&P 500 and Nasdaq have risen in seven of the past eight sessions, and are now about 8 per cent and 2 per cent below their respective mid-February record highs, as encouraging economic data, unprecedented stimulus measures and the lifting of lockdowns have raised bets on a post-pandemic economic recovery.

Markets have largely looked past brewing Sino-US tensions and protests in the United States over the death of an unarmed black man at the hands of the police.

US protesters ignored curfews overnight as they vented their anger, but there was a marked drop in the violence that prompted President Donald Trump to threaten to deploy the military.

“Investors are reassured that there won’t be any actual major upheaval in the country … (and they) believe the Sino-US relationship can survive this most recent wobble,” Connor Campbell, financial analyst at SpreadEx said.

“Combine that with

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Storied Warner Music set for 2020’s biggest Nasdaq IPO at $1.9bn

New York — Warner Music Group, one of the globe’s “big three” recording companies, said on Wednesday that it raised more than $1.9bn in an initial public offering (IPO) that underscores how streaming has re-invigorated the industry.

Warner stock is expected to start trading later Wednesday on the Nasdaq under the ticker WMG after the IPO was priced at $25 a share. The company increased the offering to 77-million shares from the 70-million initially envisioned, making it the biggest IPO of 2020 according to Renaissance Capital.

The Wall Street unveiling represents yet another chapter for a company with a storied history in the recording industry, a sector that has taken its knocks, most recently from the coronavirus, which has obliterated live entertainment for the time-being.

The Covid-19 pandemic also delayed the company’s IPO, which was originally scheduled for February. However, Tuesday’s IPO reflects how streaming music has revived an industry and also comes amid a decisive upswing in the broader stock market.

Access Industries, a group of investors headed by billionaire Len Blavatnik, which acquired Warner Music for $3.3bn in 2011, will retain its majority stake in the company.

Warner is the home of artists such as Cardi B and Ed Sheeran and holds the lucrative back catalogues from the likes of Madonna. It also owns and operates some of the world’s most successful labels, including Atlantic Records, Elektra Records, Warner Records and Parlophone.

The company is riding the streaming wave, a major revenue source for record companies and publishers even as artists complain of measly royalties. In April, Warner Music saw a 12% jump in streaming revenue, which accounted for more than half its $4.5bn in revenues in 2019.

Ups and downs

Film mogul Jack Warner founded the Music Publishers Holding Company to provide cheap access to music for his films in 1929.

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Storied Warner Music set for 2020’s biggest Nasdaq IPO at $1.9bn

New York — Warner Music Group, one of the globe’s “big three” recording companies, said on Wednesday that it raised more than $1.9bn in an initial public offering (IPO) that underscores how streaming has re-invigorated the industry.

Warner stock is expected to start trading later Wednesday on the Nasdaq under the ticker WMG after the IPO was priced at $25 a share. The company increased the offering to 77-million shares from the 70-million initially envisioned, making it the biggest IPO of 2020 according to Renaissance Capital.

The Wall Street unveiling represents yet another chapter for a company with a storied history in the recording industry, a sector that has taken its knocks, most recently from the coronavirus, which has obliterated live entertainment for the time-being.

The Covid-19 pandemic also delayed the company’s IPO, which was originally scheduled for February. However, Tuesday’s IPO reflects how streaming music has revived an industry and also comes amid a decisive upswing in the broader stock market.

Access Industries, a group of investors headed by billionaire Len Blavatnik, which acquired Warner Music for $3.3bn in 2011, will retain its majority stake in the company.

Warner is the home of artists such as Cardi B and Ed Sheeran and holds the lucrative back catalogues from the likes of Madonna. It also owns and operates some of the world’s most successful labels, including Atlantic Records, Elektra Records, Warner Records and Parlophone.

The company is riding the streaming wave, a major revenue source for record companies and publishers even as artists complain of measly royalties. In April, Warner Music saw a 12% jump in streaming revenue, which accounted for more than half its $4.5bn in revenues in 2019.

Ups and downs

Film mogul Jack Warner founded the Music Publishers Holding Company to provide cheap access to music for his films in 1929.

Read More Here...

Dow Jones opens higher on recovery optimism

A jump in Boeing shares lifted Wall Street on Wednesday, with investors remaining optimistic about an economic rebound from a coronavirus-led slump amid continuing social unrest in the country.

Boeing Co rose 5.5 per cent and was the top boost to the blue-chip Dow Jones index after billionaire investor Daniel Loeb’s Third Point said it took a stake in the planemaker.

Microchip Technology Inc surged 10.5 per cent after the chipmaker raised its forecast for current-quarter sales and profit as it begins making up for lost production due to the pandemic.

Data on Wednesday showed signs of stabilization in the domestic labor market after the ADP National Employment Report said private employers laid off another 2.76 million workers, lesser than an expected 9 million job losses.

The data comes ahead of the more comprehensive jobs report due on Friday.

Supporting the mood further was the Institute for Supply Management’s (ISM) reading, which showed US services industry activity pushed off an 11-year low in May.

The S&P 500 and Nasdaq have risen in seven of the past eight sessions, and are now about 8 per cent and 2 per cent below their respective mid-February record highs, as encouraging economic data, unprecedented stimulus measures and the lifting of lockdowns have raised bets on a post-pandemic economic recovery.

Markets have largely looked past brewing Sino-US tensions and protests in the United States over the death of an unarmed black man at the hands of the police.

US protesters ignored curfews overnight as they vented their anger, but there was a marked drop in the violence that prompted President Donald Trump to threaten to deploy the military.

“Investors are reassured that there won’t be any actual major upheaval in the country … (and they) believe the Sino-US relationship can survive this most recent wobble,” Connor Campbell, financial analyst at SpreadEx said.

“Combine that with

Read More Here...