Stocks fell for a second day yesterday, pressured by declines in tech and bank shares, pausing a sharp rally to start off the month of June.
Falling gasoline and used-vehicle prices held inflation in check in May and inflation pressures more broadly eased again, potentially making it easier for the Federal Reserve to reduce the cost of borrowing soon if the U.S. economy weakens any further. The consumer price index rose a scant 0.1% in April, matching forecast. It was the smallest increase since January. More notably, the increase in the cost of living over the past 12 months slowed to 1.8% from 2%. The rate of inflation has tapered off from nearly 3% since last summer.
Newly minted public company CrowdStrike rocketed as much as 97% in its first day of trading in the public market yesterday. The security software vendor opened trading at $63.50 after it priced its IPO at $34. The stock settled to a pop of more than 83%, pushing its market cap over $12 billion, nearly quadruple the valuation from its last private funding round in June 2018. The company is worth about as much as 37-year-old security software provider Symantec despite having about 5% as much revenue. More evidence the IPO market’s are in bubble territory right now.
According to the Wall Street Journal new emails found by Facebook may implicate CEO Mark Zuckerberg in several of the privacy controversies that have battered the social network— something that the company has denied. According to the publication, a cache of unearthed emails show that Zuckerberg may have been aware of privacy problems with his site that pre-dated the Cambridge Analytica scandal. Some of these emails could show that Zuckerberg was aware of potential privacy violations that ran afoul of a 2012 settlement with regulators. Shares of Facebook traded lower on the news.
With Northwest Quadrant Wealth Management, I'm Tyler Simones.