Oh snap! | Calamatta Cuschieri

Global markets were little changed on Thursday as investors took a breather after a strong rally on Wall Street that following President Donald Trump’s speech to the joint session of Congress during the previous session.

European shares posted small gains, with the Stoxx Europe 600 up 0.06%, led by healthcare, utility and oil and gas shares. But Wall Street was in the red on Thursday, as weak financial shares dragged on the market, with traders focused Snap Inc., owner of messaging app Snapchat, which soared on its trading debut. Because Snap is not a component of the Dow or S&P500, and because it trades on the New York Stock Exchange as opposed to the Nasdaq, it didn’t have a direct impact on the major indices. However, the strong reception could reaffirm the upbeat sentiment that has helped underpin the market’s recent record run.

Snap shares soar on debut

Shares in Snap began trading on Thursday, as the Snapchat parent company became the first technology company to go public in the US this year, making its highly anticipated debut on the NYSE.

Shares opened 47% higher at $24, beating the company’s $17 issue price and giving the company a market valuation of about $27.8 billion. The company, trading under the ticker SNAP, sold 200 million shares in its initial public offering to raise $2.4 billion, making it the largest US IPO since the Alibaba Group Holdings offering back in 2014.

Snapchat, a popular app among the younger generation of smartphone users, allows the user to take a photo or video and shares it with friends. The image only lasts a couple of seconds, and disappears after a set amount of time once the user has opened the Snap. Developed by Stanford University students, two of whom are still executives at Snap, the app had 158 million daily active users as of December 2016 but has so far failed to declare any profits.

Abercrombie and Fitch, Monster soar

Teen apparel retailer Abercrombie and Fitch said it expected its brands to perform better during 2017, and reported the first rise in quarterly comparable sales in a year at its Hollister brand. This news was enough to send its shares up 14% on Thursday.

Monster Beverages Corp was also sailing in positive territory after the energy drink maker posted higher earnings and announced a new $500 million stock repurchase plan. Shares were up 12.5%.

This article was issued by Rebecca Naudi, Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.