Episode 71: Stimulus Passes and Inflation Worries Hit
The markets have been choppy all week. The 10-year Treasury yield soared to its highest level in more than a year, triggering more selling in the tech-heavy Nasdaq 100, which slid into correction territory.
Mo Money: The House passed the pandemic relief bill. No Republican lawmaker voted in favor, but polls show the legislation has widespread public support. The bill will lift more than 11.6 million people out of poverty. It also contains tax benefits and health insurance subsidies that will help many middle-class families.
Driving the news: The SEC issued a warning on Wednesday against investing in SPACs solely because celebrities are involved or promoting them, echoing some of its alarm from a couple years ago during the digital token frenzy. The other side: "You've had a lot of folks jump into the SPAC market thinking it's like a gold rush. Whenever you have that in any sort of market, there are a lot of bad actors," Arjun Sethi, co-founder of venture firm Tribe Capital, tells Axios.
Diversity of thought: Carlyle is taking a lead in board diversity. The New York Times reports that the private equity firm has launched a $4.1 billion credit line for its portfolio companies that will tie the cost of debt to the diversity of a company’s board. Read the full article here.
Market Close
Dow 30 -32,778.64 +293.05 (+0.90%)
S&P 500 - 3,943.34 +4.00 (+0.10%)
Nasdaq - 13,319.86 -78.81 (-0.59%)
IPO
Procore Technologies has filed an amended registration statement on Form S-1 with the U.S. Securities and Exchange Commission relating to the proposed initial public common stock offering the firm announced March 2. The construction management software provider intends to list its stock on the New York Stock Exchange under the symbol PCOR. The number of shares offered and the proposed price range have not yet been determined, the company said. Procore has seen steady revenue growth over the past three years, increasing from $186.4 million in 2018 to over $400 million in 2020. The company also reported net losses for each of the last three years: $56.7 million, $83.1 million and $96.2 million, respectively.
LATAM
Valor Latitude Acquisition, a Latin America tech SPAC formed by Latitude Capital Group, filed for a $200 million IPO. http://axios.link/9c5S