What we’re reading (12/10)
“Jobless Claims Surge To 3-Month High, As U.S. Coronavirus Surge Triggers More Layoffs” (MarketWatch). “New applications for U.S. unemployment benefits jumped last week to a nearly three-month, owing to an increase in layoffs after a record surge in coronavirus cases as well as to filing delays after the Thanksgiving holiday. Initial jobless claims surged by 137,000 to 853,000 in the seven days ended Dec. 5, the Bureau of Labor Statistics said Thursday. Economists polled by MarketWatch had forecast new claims to total a seasonally adjusted 720,000.”
“Controlling Half Of The US Food Delivery Market, DoorDash Shares Soar 78% In Stock Market Debut” (USA Today). “DoorDash shares soared 78% as the meal delivery service made its debut Wednesday on the New York Stock Exchange. The shares opened at $182 after the San Francisco-based company priced them at $102 each late Tuesday. The opening price valued the company, which is trading under the symbol DASH, at around $58 billion.”
“Homeowners Are $1 Trillion Richer Thanks To The Pandemic-Driven Housing Boom” (CNBC). “American homeowners are $1 trillion richer as the pandemic-driven housing boom pads their pockets. As prices rise, home equity multiplies. In the past year, homeowners with mortgages, representing about 63% of all properties, have seen their equity increase by 10.8%, according to CoreLogic. That equates to a collective $1 trillion in gained equity, or an average $17,000 per homeowner, the largest equity gain in more than six years.”
“5 Market Structure Trends For Lawmakers To Watch In 2021” (The Hill). “(1) Increased retail investor participation, driven by zero-commission trading…(2) Broader electronification of the markets: HFT goes mainstream…(3) Further deployment of artificial intelligence in trading…(4) Regtech matures to find new compliance efficiencies…(5) Global competition: Asia dominates IPO market; the US needs to promote more IPOs[.]”
“How One Investor Made $200 Million ‘By Accident’” (Dealbreaker). “[Jeremy] Grantham, a retired investment manager, spends his time investing in passion projects and opportunities with an environmental angle. Seven years ago he invested in a company called QuantumScape, a spinout from Stanford University which showed promise in emerging battery technologies. Turned out to be a winner. QuantumScape recently merged with a SPAC (special purpose acquisition company) run by Kensington Capital Partners at a valuation of $3.3 billion. After a 30% share price jump yesterday, the newly merged entity now boasts a market cap of nearly $30 billion.”
