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Markets opened lower Friday and never strayed far from the break-even line. The third quarter ends next Friday and maybe traders just want to lie low for awhile and see what the next earnings season brings. Today’s best performing sector was telecom followed (distantly) by tech stocks. Laggards were real estate and utilities. WTI crude oil for November delivery settled at $50.66 a barrel, up 0.2% on the day and up 0.4% for the week (up 1.5% on the front month contract that changed from October to November on Thursday). December gold added 0.2% to settle at $1,297.50. Equities were headed for a narrowly mixed close shortly before the bell as the DJIA traded down 0.04% for the day, the S&P 500 traded up 0.08%, and the Nasdaq Composite traded up 0.09%.
The DJIA stock posting the largest daily percentage loss ahead of the close Friday was Apple Inc. (NASDAQ: AAPL) which traded down 1.29% at $151.41. The stock’s 52-week range is $104.08 to $164.94. Volume was about 50% above the daily average of around 27 million shares. The company had no specific news, but reports of a lukewarm reception for the new iPhone 8 and 8 Plus have weighed on the stock.
UnitedHealth Group Inc. (NYSE: UNH) traded down 1.25% at $192.77. The stock’s 52-week range is $133.03 to $200.76. Volume was about 40% below the daily average of around 2.6 million. The company had no specific news, but the increasingly likely defeat of another ACA repeal effort lifted healthcare stocks late in the day.Merck & Co. Inc. (NYSE: MRK) traded down 0.67% at $65.15. The stock’s 52-week range is $58.29 to $66.80. Volume was about 35% below the daily average of around 8 million shares. The company received approval for its Keytruda drug late in the day, but that did not seem to add anything to the stock price.
Wal-Mart Stores Inc. (NYSE: WMT) traded down 0.72% at $79.43. The stock’s 52-week range is $65.28 to $81.99. Volume was about half the daily average of around 8 million shares. The company said it plans to begin testing a home delivery service right to a customer’s refrigerator.Of the Dow stocks, 14 are on track to close higher Friday and 16 are set to close lower.
SEPTEMBER NEWSLETTER 2
The S&P CoreLogic Case-Shiller national home price index rose to an eighth consecutive record high in July, rising 5.9% year over year to 194.10. The month-over-month percentage increase was 0.7%, down from the May-to-June increase of 0.9%.
In all 20 U.S. cities included in the 20-city home price index, July house prices increased year over year, and all 20 also posted non-seasonally adjusted (NSA) month-over-month increases. Seattle (13.5%), Portland (7.6%) and Las Vegas (7.4%) posted the largest year-over-year gains. Boston and Los Angeles (1.1%) posted the largest month-over-month increases, while Atlanta (0.3%) posted the smallest gain.
The S&P CoreLogic Case-Shiller NSA home price indexes for July increased by 5.8% year-over-year for the 20-city composite index and by 5.2% for the 10-city composite index.
Economists had estimated an NSA year-over-year gain in the 20-city index of 5.7%. The NSA monthly gain of 0.7% came in at the consensus estimate.
The index tracks prices on a three-month rolling average. July represents the three-month average of May, June and July prices.
Average home prices for July remain comparable to their levels in the winter of 2007.
The chairman of the S&P index committee, David M. Blitzer, said:
Home prices over the past year rose at a 5.9% annual rate. Consumers, through home buying and other spending, are the driving force in the current economic expansion. While the gains in home prices in recent months have been in the Pacific Northwest, the leadership continues to shift among regions and cities across the country. Dallas and Denver are also experiencing rapid price growth. Las Vegas, one of the hardest hit cities in the housing collapse, saw the third fastest increase in the year through July 2017.
While home prices continue to rise, other housing indicators may be leveling off. Sales of both new and existing homes have slipped since last March. The Builders Sentiment Index published by the National Association of Home Builders also leveled off after March. Automobiles are the second largest consumer purchase most people make after houses. Auto sales peaked last November and have been flat to slightly lower since. The housing market will face two contradicting challenges during the rest of 2017 and into 2018. First, rebuilding following hurricanes across Texas, Florida and other parts of the south will lead to further supply pressures. Second, the Fed’s recent move to shrink its balance sheet could push mortgage rates upward.
Compared to their peak in the summer of 2006, home prices on both 10-city and 20-city indexes remain down about 4.8% and 2.2%, respectively. Since the low of March 2012, home prices are up 47.1% and 50.7% on the 10-city and 20-city indexes, respectively. On the national index, home prices are now 5.1% above the July 2006 peak and 44.9% higher than their low-point in February 2012.
PRICES ARE RISING FAST
MongoDB has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). No pricing details were given in the filing, but the offering is valued up to $100 million, although this number is usually just a placeholder. The company intends to list its shares on the Nasdaq under the symbol MDB.
The underwriters for the offering are Morgan Stanley, Goldman Sachs, Barclays, Allen, Stifel, Canaccord Genuity and JMP Securities.
This company is the leading modern, general purpose database platform. Its platform unleashes the power of software and data for developers and the applications they build. Ultimately, management believes that software applications are redefining how organizations across industries engage with their customers, operate their businesses and compete with each other.
MongoDB built its platform to run applications at scale across a broad range of use cases in the cloud, on-premise or in a hybrid environment. The platform addresses the performance, scalability, flexibility and reliability demands of modern applications while maintaining the core capabilities of legacy databases. This allows software developers to build or modernize applications quickly and intuitively, making developers more productive and giving their organizations a competitive advantage.
At the end of July, 2017, this company had over 4,300 customers across a wide range of industries and in more than 85 countries, compared to over 1,700 and 3,200 customers as of January, 2016 and 2017, respectively. Its customers include over half of the Global Fortune 100 companies.
In terms of finances, MongoDB said the following in its report:
For the fiscal years ended January 31, 2015, 2016 and 2017, our total revenue was $40.8 million, $65.3 million and $101.4 million, respectively, representing year-over-year growth of 60% for fiscal year 2016 and 55% for fiscal year 2017. For the six months ended July 31, 2017, our total revenue was $68.0 million, representing a 51% increase over revenue for the six months ended July 31, 2016. We believe our net annual recurring revenue, or ARR, expansion rate, which has been over 120% for each of the last ten fiscal quarters, demonstrates the attractiveness of our platform to our customers.
The company noted that although it has not yet determined how it will allocate the net proceeds of this offering, management currently intends to use those net proceeds for working capital and other general corporate purposes.