Nasdaq Will Overtake The NYSE In An IPO Year

  • Nasdaq will overtake the NYSE in an IPO year with a record number of offerings.

This year, Nasdaq Inc is expected to outperform rival New York Stock Exchange (NYSE) in terms of initial public offers (IPOs), with firms raising record amounts of cash through new stock floatation in the United States.

Except for a few years during the dot-com boom, NYSE has been the leader in new listings for the previous two decades leading up to 2019. So far in 2021, the Nasdaq has listed 686 firms, while the NYSE has listed 265. The Nasdaq surge was fuelled by many high-profile stock market debuts, including Amazon-backed electric car maker Rivian Automotive Inc, the year’s largest IPO.

Specific purpose acquiring company (SPAC) IPOs accounted for $96.76 billion of the total capital raised on Nasdaq, while standard IPOs raised $94.63 billion. The New York Stock Exchange statistics were $56.27 billion and $52.9 billion. SPACs are publicly traded shell businesses formed to merge with a private firm later to become public without going through a typical IPO.

Nasdaq said it expects to conclude the year with the most number of U.S. exchange listings in 20 years, with 4,133 operational businesses, particular purpose companies, and exchange-traded funds (ETFs). The total surpasses the exchange’s previous high of 4,109 listings set in 2001. As per Dealogic, with only a few weeks till the New Year, U.S. IPOs have totaled $301.26 billion in 2021, smashing last year’s record of $168 billion.

These three equities have an ‘overweight’ rating from Morgan Stanley, which means you can lock in a 9.8% yield before inflation rises:

High-flying growth companies dominate the news, dividend shares are sometimes neglected. A constant and rising supply of dividends, on the other hand, might help risk-averse investors sleep better at night in a world of record-low interest rates and 31-year high inflation. Dividend stocks with an excellent track record can: Provide a consistent stream of income in both good and bad times Diversify portfolios with a focus on growth, which is in severe need of it. Over time, outperformed the S&P 500.

Now let us take a closer look at three alternative investments that Morgan Stanley has rated as Overweight on Wall Street. One might be a good income play, significantly if you’re not investing any money.

Dividends aren’t well-known among technology stocks. Those with high recurring cash flows and robust balance sheets, on the other hand, may be able to continue paying out huge cash dividends to shareholders.

Currently, the stock yields only 0.8 percent in dividends. However, because Microsoft’s dividend growth strategy has increased payouts for the past 12 years, it remains a compelling option for income investors.

Morgan Stanley recently restated its overweight recommendation on Microsoft and boosted its price objective to $364, up 13% from current levels. Microsoft’s stock is now trading at $330 per share.

Procter & Gamble is one of the Dividend Kings, a group of publicly listed corporations that have increased their dividends regularly for at least 50 years.

P&G is, in fact, definitely at the top of the list. In April, the board of directors boosted the quarterly payout by 10%, commemorating the company’s 65th year of dividend increases.

It’s clear to see how the company has maintained its winning streak. P&G is a consumer staples powerhouse with well-known names, including Conquest towels, Crest toothpaste, Sharp razor blades, and Tide detergent; P&G is a consumer staples powerhouse.

P&G’s business is recession-proof, which means it can provide steady dividends in good and bad times. In September, Morgan Stanley boosted its price objective on the stock to $161, reflecting an increase of nearly 8% from current levels. The store has a 2.4 percent dividend yield.

MPLX is a lesser-known company than Microsoft or P&G. It’s a stock that real yield hunters shouldn’t overlook. The company’s headquarters are in Findlay, Ohio.

The partnership pays quarterly cash dividends of 70.50 cents per unit. The stock currently selling slightly around $29 corresponds to a 9.8% annual dividend yield. Morgan Stanley raised its price target on MPLX to $37 last month, marking a 26% gain over the stock’s current price.

Investing in the energy industry, for example, maybe highly dangerous. Remember, those market downturns may affect even the most conservative blue-chip stocks. Consider buying farmland in the United States if you want passive income without the stock market’s volatile ups and downs. People will need to eat regardless of what the S&P 500 performs. Agriculture has also been discovered to produce better risk-adjusted returns over time than stocks and real estate. You may now invest in farmland in the United States by acquiring a portion of a farm of your choice through new platforms. You’ll get money from the leasing payments and crop sales. Furthermore, any long-term appreciation will be advantageous to you.

Intel’s Mobil eye Unit Will Go Public in 2022; Shares Will Soar:

By the middle of next year, Intel Corp. aims to sell shares of its Mobil eye self-driving Vehicle Company, allowing the chipmaker to profit from its investment in a developing sector. The Mobil eye leadership team, led by Amnon Shashua, will also continue on board.

Intel’s stock rose as much as 8.5 percent to $55.30 in late trading after news of the move was first published earlier Monday. The stock has only increased 2.3 percent this year, lagging below Intel’s semiconductor rivals and broader markets. On Tuesday morning, the business hopes to provide further information about the IPO.

Despite taking the helm in February, Intel Chief Executive Officer Pat Gelsinger has been reshaping the company in the hopes of reviving the world’s largest chipmaker’s fortunes. Intel, formerly the dominant computer chip manufacturer, has lost market share to competitors like Advanced Micro Devices Inc. and has lost its technological edge in critical sectors.

Against this environment, Mobileye has been an exceptionally bright spot. Intel bought for $15 billion in 2017, has routinely outperformed its parent, and services a still-developing sector. The automotive silicone market, according to Intel, will be worth $115 billion by the end of the decade.

The switch to electric vehicles and increasingly autonomous cars in the automobile sector has created a considerable need for electronics. Mobileye develops chips and software that combine with sensors to let automobiles do more driving duties, with the eventual objective of completely replacing people.

Intel said Monday that it had signed contracts with more than 30 of the world’s leading automakers. As per research firm Guidehouse Insights, Mobileye controls around 80% of the global market for sophisticated driver-assistance vision systems.

In Tokyo, Paris, Shanghai, and Detroit, the Israeli startup has tested its technology in robot-taxi fleets. Last quarter, it brought in $326 million in sales, up 39% over the prior quarter. Operating income grew to $105 million, more than double the sum from the previous year.

For the entire year of 2021, Mobileye anticipates revenue to increase by 40%. According to Intel, the deal would have no impact on the company’s financial plans for 2021.

Intel has also made recent strides to expand its transportation technology efforts. In 2020, it paid $900 million for the Israeli company Moovit. Due to the purchase, it gained access to data from public-transport maps, which could be combined into a ride-hailing service.

Mobileye will include that section, as well as Intel employees working on lidar and radar technologies, according to the business.

Intel’s broader return has been more difficult. In the company’s most recent earnings report in October, management cautioned that the turnaround would hurt profitability over the next few years, causing the stock to plummet. Investors are watching to see if Gelsinger can maintain Intel’s products improving rapidly enough to deter customers from switching to competitors or, in some circumstances, creating their processors.

The UAE has changed its weekend to Saturday-Sunday and adopted a four-and-a-half-day week:

The United Arab Emirates will shift its weekend to Saturday and Sunday, breaking with the rest of the Gulf region, to attract global investment and business.

According to the administration, the country will implement the move on Jan. 1, adopting a four-and-a-half-day work week, with Friday — an Islamic holy day — being a half-day. The United Arab Emirates and the rest of the Gulf countries, including Saudi Arabia, follow a Sunday-to-Thursday timetable.

The reform is a step forward in the UAE’s efforts to preserve its reputation as the Gulf’s preeminent economic hub, including Abu Dhabi and Dubai. Competition from Saudi Arabia is intensifying as the oil-producing heavyweight embarks on an unprecedented push to attract global investment and diversify its economy.

“This will improve the UAE’s connectivity to global markets and make doing business for multinational companies easier,” said Nabil Alyousuf, Dubai-based International Advisory Group CEO. “This will enhance trade by increasing the number of days we conduct business with the rest of the globe.”

In a statement released Tuesday, the government did not clarify whether the private sector would be required to implement the new 4 1/2-day workweeks. It was also unclear if it would result in a shift in trading hours on local markets. Stock exchanges have been implementing strategies to increase liquidity and attract overseas investors.

“Until the labor ministry produces a circular to that effect, the private sector is most likely not required to follow the 4 1/2-day work week,” said Habib Al Mulla, a partner at Baker & McKenzie Habib Al Mulla law firm. “It’s quite improbable that the private sector will be subjected to it.”

“The ruling will make the UAE more appealing to international enterprises as a regional location.” However, if the 4-1/2 workweek does not expand beyond government bodies, the attraction of private-sector positions would dwindle even further.”

Chief emerging market economist Ziad Daoud, The declaration comes after the UAE spent more than $6 billion last year to help 75,000 people find work in the private sector. The UAE, like other Gulf nations, has a substantial number of individuals employed in government employment, which pay well but require fewer hours.

UAE to Invest $6.5 Billion in Job Creation in the Private Sector:

Other nations in the area may follow suit shortly. In 2006, the United Arab Emirates became the first Gulf country to change its weekend from Thursday to Friday to Friday and Saturday, followed by Saudi Arabia in 2013 and Qatar in 2015.

With Omicron Concerns Easing, Brent Oil Continues to Rise to $75.

As equities markets soared, futures in New York surpassed $71 and those in London over $75. Although preliminary data indicates that the increase in omicron infections has not yet overloaded hospitals, several countries have imposed travel restrictions that are likely to reduce jet fuel usage.

According to government data, oil imports in China reached a three-month high in November after refiners were given fresh quotas. As foreign demand soared ahead of the year-end holidays, overall exports also set a new high.

Low liquidity and so-called adverse gamma effects, in which options traders are obliged to sell futures contracts to hedge their risk, have been blamed by some experts for oil’s recent drop. When prices climb, as they have in recent days, those traders frequently buy back the futures they sold, adding to the rally.

While petroleum fell into a bear market last week, prices have been slowly rising since then since Omicron’s demand has been restricted so far. Citigroup Inc. said on Tuesday that it is positive on prices in the short term and that Saudi Arabia’s decision on Sunday to raise the price of its oil for January provided the market confidence that demand will continue firm.

“For the time being, the most significant fears regarding the omicron strain of coronavirus, which had driven the price drop, have vanished.”

While Citi believes the oil market will rebound from recent losses, it is more pessimistic about the long-term prospects. Prices towards the rear of the curve are expected to fall as OPEC+ countries aim to pump more and non-OPEC+ supply stays plentiful between $50 and $60.

For four weeks, Omicron has forced France to close nightclubs, while New York City has sought a private sector vaccination mandate, and Hong Kong has increased the number of nations subject to quarantine. Following restrictions on air travel, Energy Aspects lowered its predictions for jet fuel and oil consumption.

Also Read: Saudi Wealth Fund to Sell STCs for Up to $3.1 Billion

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