“Don’t you know that you are a shooting star, And all the world will love you just as long as long you are you.” – Bad Company
We normally wait until Friday’s to crank up some office tunes as a way to wind down the week and relieve the stresses of trading but we couldn’t resist playing a classic ahead of this morning’s open.
In case you haven’t been tweeted, or heard of today’s biggest IPO since Facebook (FB, $48.24, down $0.88), shares of Twitter (TWTR, $46, up $20) are now trading on the Big Board.
Shares priced at $26 last night and the chatter before the bell was Twitter would open between $30-$35. That figure got bumped to $40-$44 just minutes before the bell and a little over an hour later shares opened at $45.10. They have kissed a high of $50.
We were looking at a stock trade for our Weekly Wrap if Twitter would have opened below $30 but we certainly aren’t chasing at these levels. Instead, we will wait for options to list and possibly look into trading calls or puts on the name down the road.
Twitter’s gains may be holding but the market has given up its opening pop as it seems neither the bulls or bears are willing to make big bets ahead of tomorrow’s Nonfarm Payrolls report.
Estimates are all over the map as some predictions are calling for Payroll gains of only 100,000-125,000 jobs added while some suit-and-ties are pushing figures between 180,000-200,000.
We would probably shut the front door if a number north of 175,000 comes out due to the government shutdown and a safe bet might be in the neighborhood of 150,000.
The event will likely hinder or help the bulls push to continued all-time highs as the market digests if the figure is good news or bad news. If the jobs total comes in below 125,000 added, the taper talk will cool but it would also signal the economy is slowing instead of gradually increasing like many have been suggesting.
As we head to press, the Dow is down 31 points to 15,715 while the S&P 500 is lower by 7 points to 1,762. The Nasdaq is getting spanked for 37 points and is below 3,900 to 3,894. The Russell 2000 is off 7 points to 1,091.
We have a New Trade we are getting into so we have to roll. Subscribers, check the Members Area for the details and we will be back in the morning with a full report.