Today we are seeing futures pull back a bit domestically while we are seeing red in the markets in Europe and in Asia. Oil is up but so is the VIX this morning. We aren’t seeing a clear direction presented from our currency line up either but longer-term charts are still showing that the SPY above the 5 and 8 daily moving averages as it almost closed about the 200 day moving average yesterday.
In the pre-market, the SPY fell and bounced off a key support line of 294.75. We have more economic information coming out today. Specifically, we get our weekly unemployment claims at 8:30 which are expected at 2.4 as well as some PMI data this morning with house data and Fed members speaking later in the day.
As far as the market goes today, we have an IPO today, SelectQuote, Inc. (SLQT).
I’ll get into that more below. But also, the house has passed a bill that would not only delist Chinese companies from domestic markets and this would also prevent future Chinese IPOs from list here as well. We will have to see if these bills make it through the Senate and the President.
This is the first non-biotech/Chinese IPO that we’ve seen since the pandemic. SLQT is essentially an insurance company and it it has good comps compared to (EVER) and (EHTH). They reported a 44% growth in revenue and 108% growth in net revenue and are profitable. Additionally, the deal is now multi-times over subscribed and has priced at $20 a share which is $1 over its price range of $17-$19. The only concern for me is 8 million of their 25 Million shares being offered are from inside shareholders selling. Other than that, this offering looks great.