Here’s your Investing Action Plan for Wednesday: what you need to know as an investor for the coming day.
The busiest week for IPOs so far this year will kick into high gear tomorrow, as a few new issues debut in the morning and several more price in the evening. The biggest will be meal-kit delivery service Blue Apron (APRN), which could raise more than $500 million and begin with a market cap above $3 billion. Another highlight Wednesday will be results from the second round of stress tests, which will determine how much big banks can pay out to shareholders.
After pricing tonight, biotech Mersana Therapeutics (MRSN) and “blank check” company TPG Pace Holdings will trade Wednesday.
And after the close Wednesday, Blue Apron is expected to price, along with cancer-treatment developer Aileron Therapeutics (ALRN), lender Byline Bancorp (BY), blood disorder treatment developer Dova Pharmaceuticals (DOVA) and enterprise cloud platform Tintri (TNTR).
Blue Apron’s pricing comes just weeks after Amazon’s (AMZN) purchase of Whole Foods (WFM), which has some investors worried that the e-commerce giant will drive out more competitors in the healthy food realm business with low prices.
The surge of activity follows last week’s debut of Altice USA (ATUS), which priced its upsized IPO near the high of its expected range, raising $1.9 billion and making it the year’s second-largest new issue after Snapchat parent Snap (SNAP).
Stress Test Part 2
After clearing the first round of the Federal Reserve’s annual stress tests last week, the Fed on Wednesday will release results for the second and final round of those tests, known as the Comprehensive Capital Analysis and Review, or CCAR, which evaluates the quality of a bank’s risk management and capital planning procedures.
Banks like JPMorgan Chase (JPM) will likely begin announcing their dividend and buyback plans shortly after the Fed releases the CCAR results at 4:30 p.m. ET.
The results come as a few top banks are nearing buy points: JPMorgan (89.23 buy point from a double-bottom base), Bank of America (BAC) (a 25.90 conventional buy point as well as an alternate 24.45 aggressive buy point), and Morgan Stanley (MS) (a 46.08 entry).