Before the market opened, President Donald Trump fired a tweet directed at China, saying, “China is doing very badly, worst year in 27.” Markets opened lower as trade fears returned. Since then, the market has remained choppy. The markets are also closely awaiting the outcome of the two-day Fed meeting that started today. At 1:00 PM ET, the S&P 500 Index (SPY) was down 0.4%, while the Nasdaq Composite (QQQ) was down 0.35%. So far this year, SPY and QQQ are up 20.6% and 26.2%, respectively.
Apple was 0.81% down ahead of its fiscal 2019 third-quarter earnings results, which are scheduled for release after market hours today. Uber (UBER), Lyft (LYFT), and Slack (WORK)—three companies that went public this year—are under pressure today.
What’s happening with Uber?
Uber has remained under pressure today after announcing 400 marketing team layoffs yesterday. The stock fell 1.4% yesterday and was down more than 3% at 1:07 PM ET today. The ride-hailing giant laid off one-third of its marketing team to cut costs. The layoffs come at a time when there are rising questions about Uber’s profitability and growth potential amid its subdued stock performance. Its shares are still trading below their IPO price of $45.
Lyft loses its COO
Yesterday, CNBC reported that Lyft’s COO, Jon McNeill, was set to leave the company. Lyft stock fell 2.2% yesterday and was down 2.4% at 1:07 PM ET today. There are talks that the position may not be refilled, raising questions about Lyft’s profitability and growth potential. Like Uber, Lyft had a dismal IPO and is trading substantially below its IPO list price.
Slack remains under pressure
After falling 3.2% yesterday due to an outage, Slack was down 2.4% at 1:07 PM ET today. Yesterday, At 10:54 AM ET, Slack’s team posted that some workspaces might be experiencing issues with messaging and overall speed. About half an hour later, the team said that some users might have issues accessing workspaces completely. By 11:54 AM ET, the issue was resolved. However, the markets didn’t spare the stock.
WeWork to hold an analyst day
Meanwhile, WeWork, another unicorn that’s expected to go public soon, is holding an analyst day tomorrow to push for an IPO.