Episode 14: Silver lining
Hi Friends. Thank you for tuning into another episode of Pandocap. They say there is always a silver lining and today we are seeing that across the markets, for sure.
As the new unemployment report was released, it showed that during the month of May, 2.5 million jobs were added, dropping the unemployment rate to 13%. It’s the biggest correction seen to date. The reopening is providing a rally with sectors in transportation stocks, bank stocks; the biggest stock gainer was Boeing, up 43%.
Another shift we are seeing is that companies are now trying to become more accountable when it comes to racial equity. We saw multiple statements being put out by private and public companies saying they stand by the black community. We also saw big diversity funds being created by Softbank and Goldman. This has some in the community like Opportunity Hub and Arlan scratching their heads, as this has been their life's work. Although the entire ecosystem seems to be coming to the table, Black and LatinX founders and the community will be looking for partnerships from LP’s, hiring diversity and funding, driving their accountability efforts. All in all, I think the awareness and change is moving in a good direction.
Moving on to the market.
Dow up over 829 points putting it over 27,110
S&P up 81 points at 3,193
Nasdaq up 198 points at 9,814
Retail News - J.C. Penney has announced the locations of 154 stores that will be closing as it restructures after filing for chapter 11 bankruptcy last month.
IPOs - As discussed on Tuesday’s IPO update, we had 6 IPOs perform well this week. Zoom Information, not to be confused with Zoom Video, popping 90%. I am sure they are a great company, but they are probably getting an extra boost from the original Zoom - and now they are both zooming!
Final thoughts - As we end the week of a tumultuous 8 days, it’s good to end on a positive note, with the markets up and good news on unemployment. Next week I will be interviewing a leader of the venture community discussing the impact of all of this on the venture ecosystem. Thank you and have a great weekend.