What's moving markets today: Uber IPO and tariffs

By CNN Business

Updated 5:52 p.m. ET, May 10, 2019
23 Posts
Sort byDropdown arrow
3:57 p.m. ET, May 10, 2019

Uber may be the biggest IPO bust ever

From CNN Business' Paul R. La Monica

Uber's (UBER) hugely disappointing Wall Street debut is historic. Never has a company this well-known, one that has generated such an insane amount of hype and media coverage, done as poorly on its first day of trading.

The only company that came close to being this big of a flop when it went public was Facebook (FB) back in May 2012. Shares rose less than 1% on their first day.

Here's a look at how several other high-profile tech firms have fared on their IPO day.

  • eBay (EBAY) -- up 163% in September 1998
  • Twitter (TWTR) -- up 73% in November 2013
  • Snapchat (SNAP) -- up 44% in March 2017
  • Alibaba (BABA) -- up 38% in September 2014
  • Amazon (AMZN) -- up 31% in May 1997
  • Pinterest (PINS) -- up 29% in April 2019
  • Google (GOOGL) -- up 18% in August 2004

2:53 p.m. ET, May 10, 2019

Tulsi Gabbard: It's 'dangerous' how much power Mark Zuckerberg has

From CNN Business' Matt Egan

Facebook needs to be reined in.

That's the message from Democratic presidential candidate Tulsi Gabbard, who was disturbed by Thursday's op-ed from Facebook co-founder Chris Hughes that argued the company should be broken up.

It shows "how dangerous it is when you have one person, Mark Zuckerberg, who wields incredible power over what pops up in our newsfeeds," Gabbard, a Congresswoman from Hawaii, said on Friday at the SALT Conference in Las Vegas.

Hughes' New York Times op-ed described Zuckerberg as more powerful than anyone in the government or even the private sector. He noted that only Zuckerberg can tinker with Facebook's algorithms to determine what people see on the social network and how to determine what's considered offensive content.

"We've got to break up these monopolies," Gabbard said, mentioning Facebook and Google specifically.

She called for greater oversight into how big tech companies are "misuing our own private information."

2:49 p.m. ET, May 10, 2019

Stocks bounce back from lows

From CNN Business' Anneken Tappe

US stocks bounced back from their lows in early afternoon trading after Treasury secretary Steven Mnuchin said the talks with Chinese negotiators had been "constructive".

China's Vice Premier Liu He reportedly said the talks had gone "fairly well".

  • The Dow was last little changed, flipping between positive and negative territory. It recovered from falling as much as 300 points earlier.
  • The S&P 500 was also little changed in negative territory, while the Nasdaq was down 0.3%.

2:04 p.m. ET, May 10, 2019

This IPO not named Uber is soaring

From CNN Business' Paul R. La Monica

The Uber (UBER) IPO may have been a dud. But there's another company that went public on Friday and its stock is surging. Shares of Chinese online lending marketplace Jiayin Group (JFIN) were up more than 40% in their debut.

Scott Coyle, CEO and co-founder of ClickIPO, an app that allows individual investors to buy and sell shares of new stocks, said there was solid demand for Jiayin among the more than 100,000 people who have downloaded the ClickIPO app.

The success of Jiayin is all the more impressive given the market volatility as of late due to increased trade tensions between the US and China this week and worries about how the Chinese economy could be hit by a prolonged spat.

Coyle thinks the strong debut for Jiayin bodes well for a larger and more well-known Chinese firm expected to begin trading next week: Luckin Coffee (LK). Luckin, which will list on the Nasdaq, has been dubbed the Starbucks of China. Coyle says there has been a fair amount of interest in Luckin from ClickIPO users.

If this trend keeps up, then perhaps Chinese ridesharing giant Didi will do better than Uber and Lyft (LYFT) if it decides to go public.

1:23 p.m. ET, May 10, 2019

Uber picked a bad week to go public

From CNN Business' Seth Fiegerman

Uber (UBER) picked a hell of a week to go public.


President Trump surprised investors by threatening to impose higher tariffs on China in a tweet. The market swung wildly amid concerns of an escalating trade war between the United States and China.


Lyft (LYFT) reported its first earnings report since going public, which revealed more than $1 billion in losses during the first three months of this year.

At one time, Uber rooted for Lyft to fail. But as the closest proxy to Uber on the public market, Lyft's stock decline only made Uber's IPO pitch that much harder.


Uber and Lyft drivers staged strikes in numerous cities around the world ahead of the IPO.

The drivers are seeking livable incomes and job security at a time when Uber will likely only face greater pressure from investors to find ways to move toward profitability.


The United States has escalated its trade war with China, hiking tariffs on $200 billion worth of Chinese exports hours after trade talks held in Washington failed to produce a breakthrough.

12:32 p.m. ET, May 10, 2019

Uber opens at $42 a share in disappointing Wall Street debut

From CNN Business' Seth Fiegerman

The most highly anticipated IPO of the year had a less than stellar reception on Wall Street.

In a stunning turn of events, Uber (UBER) opened at $42 a share in its Wall Street debut Friday, below its IPO price of $45 a share.

The lackluster debut comes as Uber runs up against broader market jitters over an escalating trade war between the United States and China as well as investor concerns about its chief rival and closest proxy, Lyft.

2:20 p.m. ET, May 10, 2019

The Dow sinks 300 points

From CNN Business' Anneken Tappe

Stocks remain solidly lower an hour and a half into the trading day, as worries about the next developments in the trade spat between the United States and China weigh on investors.

The Dow fell 300 points, or 1.2%, while the S&P 500 and the Nasdaq are down 1.3% and 1.6%, respectively.

Only five Dow stocks are trading in positive territory:

  • Walmart (WMT)
  • Coca-Cola (KO)
  • McDonald's (MCD)
  • Procter & Gamble (PG)
  • Verizon (VZ)

The stocks leading the decliners:

  • Apple (AAPL), down 2.6%
  • Intel (INTC), down 2.1%
  • Caterpillar (CAT), down 2%

In the S&P, all sectors besides the more resilient utilities are down.

11:22 a.m. ET, May 10, 2019

Investors aren't super excited for Uber. That could be a good thing

From CNN Business' Paul R. La Monica

There was a lot of buzz on Wall Street about Uber’s (UBER) IPO on Friday. But investors on Main Street don’t seem as enthused.

Shawn Cruz, manager of trader strategies for TD Ameritrade, told me from the floor of the NYSE that he was seeing “decent demand” for Uber stock -- but not nearly as much as there was for Facebook (FB) and Alibaba (BABA) when they went public.

But that might be a good thing. Unlike Uber rival Lyft (LYFT), which raised its price range and then priced at the top end of it, Uber appears to be going public at a more reasonable valuation.

Uber vs. Lyft

Cruz added that Uber might fare better than Lyft — and not just because it is bigger.

Rapidly growing Uber Eats is a big selling point for Uber. Cruz thinks Uber deserves a valuation closer to delivery giant GrubHub (GRUB) as a result.

10:21 a.m. ET, May 10, 2019

Waiting for Uber's first trade

From CNN Business' Paul R. La Monica

We're still waiting for Uber's first trade. What will it start at? This could be a hint.