Amidst the news that debt ceiling talks are moving towards positive direction, U.S. stocks surged to the record level and sent the Standard & Poor’s 500 Index (SPX) to the highest point since September. In all probabilities, the lawmakers are moving towards a viable solution and agree for raising the debt limit to avoid a default and that is sending positive signals to investors.
It was the best trading day for the S&P 500 since September as it increased 0.6% to 1,703.20 at 4 p.m. in New York. Thus, erasing losses since the government’s partial shutdown that began early this month, the index recorded one of the best growth; investors believe that this may continue in the next couple of days.
Similarly, the Dow Jones Industrial Average climbed 111.04 points to 15,237.11, the highest level since Sept. 27. This is a 0.7% jump where about 5.7 billion shares changed hands on U.S. exchanges, 3% below the three-month average. Investors see better prospects as S&P and Dow Jones Industrial Average bounces back.
Johnson & Johnson Advances
After Goldman Sachs Group Inc. boosted the stock’s rating of the company, Johnson & Johnson advanced 1.9%. Similarly, an index of homebuilders climbed 2%. IT companies like Cognizant Technology Solutions Corp. climbed 5.5%, Infosys Ltd. raised its revenue forecast and capped +3.12 (+6.21%) gains on the trading day.
However, it was not such a good day for Gap Inc. as its stocks dropped 6.7% thanks to a drop in sales.
Twitter Valuation: The Company Set to Pay 3.25% Bankers’ Fee
Goldman Sachs Group Inc. is the lead underwriter for Twitter which is debuting in stock market now and according to various reports as the company is known to have a bigger cut of the deal; it is expected to take 3.25% Bankers’ Fee. However, it is not that high that it catches our eye as the average IPO fee this year is 4.5%.
Though Twitter’s fee is lower than the average this year, it is still higher than those paid by Facebook Inc. (FB) because it’s a smaller offering. Currently, Twitter is fairly valued at about $12.8 billion which is based on the value of its common stock at $20.62 a share as of August.
Now, it is highly likely that Twitter will fare better than Facebook’s IPO which was plagued by technical gaffes on the NASDAQ, and the New York Stock Exchange.
To contact the reporter of this story: Jonathan Millet at firstname.lastname@example.org