Some mixed economic news hasn't hurt the Dow Jones Industrial Average (DJINDICES:^DJI) this morning, as it creeps above the 15,700 mark by late morning. Very possibly, Goldman Sachs (NYSE:GS) and JPMorgan Chase (NYSE:JPM) are adding some bounciness to the index, as both underwriters of the Twitter initial public offering bask in the glow of the social media giant's much-heralded crossover into publicly traded territory.
The Mortgage Bankers Association's revelation that home loan applications fell by 7% last week compared to the week previous wasn't great news, but it doesn't seem to be holding the Dow back in the least.
The Conference Board followed with some better data, noting that its Leading Economic Index for the U.S. climbed by 0.7% in September, following the same rate of increase in August. As the noon hour approaches, the Dow continues to rise, up by 0.6% and nearly 100 points.
Twitter IPO may be goosing bank stocks
Without any real news today regarding the big banks, it's a good bet that the excitement over Twitter's IPO is responsible for Goldman Sachs' and JPMorgan Chase's peppy start to the day. The fun is set to start tomorrow, and the offering has had a circus quality about it, as investors clamor to get a piece of the action.
The launch is expected to raise approximately $1.75 billion, as the share price offering rose recently from $17-$20 to $23-$25 per share, sweetening the pot for both Goldman and JPMorgan as underwriters of the deal. Although some analysts have questioned the wisdom of buying into Twitter -- suggesting that the offering price is too high, for example, or that its business model is sketchy -- investors don't seem like they are being deterred, or taking the criticisms too seriously.