Anthropic IPO picks up pace as SpaceX dips below offer price

Claude chatbot maker Anthropic has got the jump on ChatGPT rival OpenAI, with reports that it’s moving faster on a planned initial public offering, even as Elon Musk’s SpaceX dipped below its sale price.

Tech stocks were generally stronger as Dutch chip machine supplier ASML raised its sales guidance and said it will boost output to meet hot demand in coming years, while slower increases in producer prices than anticipated kept expectations for the Federal Reserve to raise interest rates in check, buoying Wall Street more broadly.

Financial companies continued to impress at the start of the US corporate earnings season, with asset manager BlackRock and banks Morgan Stanley and Bank of New York Mellon the latest to beat expectations.

And payments firm PayPal surged on news that Stripe and buyout firm Advent International made a joint takeover offer valuing the firm at US$53 billion.

Earning respect

Wall Street extended gains as financial stocks continued to beat expectations, with BlackRock’s assets under management soaring to a new record US$15.3 trillion as clients benefited from surging stock markets, while Morgan Stanley was buoyed by strong trading and deal revenue.

The Dow Jones Industrial Average and S&P 500 were both up 0.2% in late trading, while the tech-heavy Nasdaq Composite advanced 0.4%, with the likes of Apple, Alphabet, Amazon and Microsoft on the green side of the ledger.

PayPal surged 17% on news that Stripe had teamed up with Advent to mount a joint takeover bid, while the UK’s antitrust regulator said it would look at Danone’s proposed US$1.2 billion acquisition of British plant-based food powder maker Huel.

The AI trade was buoyed by Netherlands-listed ASML raising its sales guidance, while Bloomberg reported that Anthropic was preparing to meet potential investors ahead of a planned IPO.

Still, it wasn’t all one-way traffic as SpaceX extended its decline for a fourth day, down 1.2% at US$134.39, below its US$135 IPO price. Local favourite Rocket Lab dropped 3.2% to US$76.29.

Managing expectations

A more benign US inflation outlook added to the upbeat investor sentiment, with US producer prices rising 0.2% last month, a smaller increase than forecast.

“Combined with Tuesday's softer CPI report, the latest data reinforced expectations that inflation is cooling, helping Treasury yields move lower and reducing immediate pressure on the Federal Reserve to tighten policy further,” Moomoo market strategy consultant Greg Boland said in a note. “Investors also welcomed comments from New York Fed president John Williams, who said there are encouraging signs inflation has likely peaked.”

The kiwi dollar rose to 58.53 US cents at 7am in Auckland from 58.16 cents yesterday, with bond traders pricing in two more hikes by the Reserve Bank this year.

European stock markets were mixed as the strong ASML result was tempered by International Business Machines’ warning the day earlier. The UK’s FTSE 100 dipped 0.1% and Germany’s DAX fell 0.6%, while France’s CAC 40 advanced 0.2% with luxury firms buoyed by Swiss-based Richemont’s stronger-than-expected sales.

Oil markets were muted as the latest round of military strikes between the US and Iran entered a fifth day, with Brent Crude futures up 0.5% at US$85.15 a barrel at 7am. The Financial Times reported traders were warning that the latest flareup threatened fresh supply squeeze given stockpiles had been used up by the earlier conflict.

Australian futures are pointing to a 0.1% increase for the S&P/ASX 200 index when trading opens across the Tasman, with the major lenders in view after the strong lead from US banks.

Moomoo’s Boland said New Zealand’s S&P/NZX 50 index was expected to open on a slightly positive note after Wall Street’s uneven session.

“While easing inflation and solid corporate earnings continue to support equities, geopolitical risks and energy prices remain key variables for global markets,” he said.

Reporting by Paul McBeth. Image from Solen Feyissa on Unsplash.