U.S. stocks traded higher yesterday, the first day of the new quarter, as Wall Street scored an apparent boost from better-than-expected economic reports here and in China, momentarily easing fears of flagging economic growth.
The Institute for Supply Management’s manufacturing index showed that activity in the manufacturing sector accelerated, coming in at a stronger-than-expected 55.3 in March versus a two-year low of 54.2% a month earlier. A reading above 50 indicates an expansion in activity.
Construction spending climbed 1% in February following a revised 2.5% gain in January, suggesting a rebound in early 2019 after a bout of weakness toward the end of last year.
The Lyft IPO is a good example of why retail investors shouldn’t be buying Initial Public Offerings. Share of Lyft came public last week over $86/share, but are now trading at $68/share showing how institutions sell their shares to the public leaving them holding the bag.