Apr. 04 - Summary: The Nasdaq suffered its biggest point drop since August 2011 as investors continue to dump high flying tech and biotech stocks; GrubHub surges in debut; Weibo details IPO plans; U.S. job growth rises for second month. Conway G. Gittens reports.
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Hiring is on the up and up but tech and biotech continue to get beat down.
That tug-of-war played out in the market with the tech slide dominating, leaving markets down and the Nasdaq tumbling 2.6 percent.
For the week: blue chips tacked on 0.6 percent and the Nasdaq was down roughly 0.7 percent.
Looking at the big losers in tech land: TripAdvisor, Netflix, Amazon, Facebook and Tesla top the list.
One stock not part of that group: GrubHub. The biggest U.S. online food delivery provider soared in its New York Stock Exchange debut. The new offering priced above the expected range. Last year, the company processed $1.3 billion in food orders from mom and pop restaurants and CEO Matt Maloney says his technology can grow that number to a much bigger piece of the overall pie.
SOUNDBITE: MATTHEW MALONEY, CEO, GRUBHUB (ENGLISH) SAYING:
"And then you look at what is in front of us and you say wow - $70 billion in annual spend and of that 97 percent is being placed through the paper menus and offline analogs. That's ridiculous. We've seen this story before, the offline to online transition and that's exactly what we are doing. We are the clear leader in this space by order of magnitude and we are going to continue innovating to help facilitate that transition."
That growth potential -resonating with investors - the stock surged almost 31 percent in its debut.
IPOs are a hot ticket. In the first quarter, more than $47 billion has been raised globally, a startling 98 percent surge from Q1 2013. Here in the U.S. there were 76 debuts as of Friday, double compared to the same time a year ago, raising $14 billion compared to nearly $9 billion during the same period.
And there's more to come. Weibo, China's version of Twitter, filing to sell 20 million shares to list on the Nasdaq at a price between 17 and 19 per share.
Aside from IPOs - job growth is at the heart of the economy and that heart is beating a little faster. Payrolls grew by 192,000 in March with numbers for January and February revised higher. Unemployment held steady at 6.7 percent as more Americans went back on the hunt for a job. Economists say the numbers show the economy is getting over the weather effect but not enough to get the Federal Reserve to hike interest rates any time soon.
And speaking of central banks, speculation the European Central Bank is working on new stimulus, sent stock prices higher across Europe.
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