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Investing.com -- Flopping IPOs, paradise postponed for chipmakers and Delta is spreading its wings in South America. Meanwhile, the euro hits a new two-year low against the dollar and the Trump impeachment process continues to cast a long shadow. Here's what you need to know in financial markets on Friday, 27th September.
1. Endeavor pulls IPO, Peloton (NASDAQ:PTON) flops, We Company cuts
The IPO market is showing increasing signs of stress after talent agency Endeavor Group pulled its prospective deal, while Peloton (NASDAQ:PTON), the maker of high-end exercise equipment, fell 11% on its debut.
Elsewhere, We Company started to address the bloated cost structure that scared investors off its proposed deal last week. According to the Wall Street Journal, it’s not only considering job cuts at its operating company WeWork, it’s also – gasp! – going to sell the Gulfstream private jet of founder Adam Neumann, who was ousted as chief executive earlier this week.
2. Trump’s whistleblower travails
President Donald Trump threatened retribution against the whistleblower whose report was released Thursday by the House Intelligence Committee. Trump branded the whistleblower, who has been identified as a CIA agent seconded to the White House as “a kind of spy” in a closed-door meeting reported by Bloomberg.
Markets remain unsure how to react to the impeachment process which was launched by House Speaker Nancy Pelosi earlier this week. The Congressional arithmetic suggests that Trump should easily resist impeachment in the Senate, which is controlled by his party.
However, doubts about the willingness of the Republican Party to stick by Trump are circulating. George Conway, husband of White House strategist Kellyanne Conway, tweeted Thursday: "There may be Republican senators who won’t say a word until the moment they say “guilty” when the roll is called at the end of an impeachment trial."
3. Wall Street set for modest bounce
U.S. stock markets are set to open a little higher, recouping some of the losses caused by political concerns on Thursday.
By 6 AM ET, Dow futures, the S&P 500 futures contract and Nasdaq 100 futures were all up 0.2%. That leaves them on course for a loss of between 0.8% and 1.2% in a week where there hasn’t been enough encouraging news on the trade front to offset increasing concern about the U.S. domestic political outlook.
Chipmaker stocks may be set for a rocky opening after weak guidance from Micron Technology (NASDAQ:MU) late Thursday caused it to slide 7% in after-hours trading.