What's moving markets today: May 17, 2019
US markets ended the day lower Friday.
The losses snap a three-day winning streak held by all of the major indexes.
Wall Street has been gripped by fear about the US-China trade war. There wasn’t any progress between Thursday and Friday on arranging for a new round of trade talks between Washington and Beijing, people familiar with the matter told CNN.
Does the Eye Network want to add cable TV hits "American Gods," "Outlander" and "Power" to its roster? Tech site The Information reported Friday that CBS made a $5 billion offer to acquire Starz, the media company that merged with TV and movie studio Lions Gate in 2016.
The Information said that Lions Gate turned down the offer, which makes sense. Lions Gate only bought Starz a little more than 2 years ago. It paid $4.4 billion. So a $5 billion paycheck from CBS would represent less than a 6% premium.
So it will be interesting to see how badly CBS CEO Joseph Ianniello wants Starz. Shares of CBS are down more than 6% in the past year in the wake of the ouster of longtime chief Les Moonves following a sexual harassment scandal.
The stock is lagging ABC owner Disney (DIS) and NBC Universal parent Comcast (CMCSA). The Lions Gate chatter also comes at a time when there is rampant speculation that CBS may want to reunite with its former movie studio sibling Viacom (VIAB).
Beyond Meat has been a stunning success on Wall Street. The plant-based meat company's shares have nearly tripled in value since going public on May 2. But that's leaving a bad taste in the mouth of one prominent short seller.
Citron Research, the investing firm run by Andrew Left, tweeted Friday that the stock is now "beyond stupid" and predicted that shares would drop to $65. That's about 30% below where Beyond Meat (BYND) closed on Thursday. The stock fell 6% on Friday.
Interestingly, Citron seems to think that Beyond Meat's big rival, Impossible Foods, might also be considering an IPO. If that happens, Left seems to suggest that Beyond Meat's stock could tank just like ridesharing #2 Lyft (LYFT) did once Uber (UBER) went public.
The company might not sound familiar, but it has recognizable roots according to our David Goldman:
Cray briefly achieved pop-culture fame in the 1990s when author Michael Crichton wrote "Jurassic Park." In the 1990 novel, four Cray X-MP supercomputers powered the theme park's DNA sequencer that brought dinosaurs back to life. In the 1993 film, Jurassic Park's DNA sequencing lab was powered by Cray computers in the background.
Here's where the markets stand at the midway trading point:
Luckin Coffee (LK) made its trading debut on the Nasdaq. It surged 50% above its opening price of $17 per share, but has clawed back some of its gains.
The debut of Luckin Coffee (LK) on the Nasdaq was a strong brew.
The stock opened at $25 per share — surging nearly 50% above its $17 per share opening price.
For example, its stores don't accept cash -- customers can only pay through the Luckin app, which offers loyalty bonuses.
CFO Reinout Schakel spoke to CNN's Julia Chatterley today. The Chinese company is set to go public on the Nasdaq today.
We want to provide a high quality coffee for a much more affordable price and still be able to become profitable," he said.
Schakel said he believes Luckin will become profitable "rather quickly" but declined to comment on exactly when.