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Duke's Harvey on Why SpaceX's IPO Could Distort Passive Flows

Shares of SpaceX appear ready to jump when they start trading on Friday after Elon Musk's company made history with a $75 billion IPO that instantly turned it into one of the biggest public companies in the world. Early indications of buying interest on Nasdaq pointed to a roughly 30% jump from the shares' offering price of $135. The stock is expected to officially start trading later Friday under the ticker SPCX. Campbell Harvey, Professor of Finance at Duke University's Fuqua School of Business, breaks down why the SpaceX IPO could expose major flaws in index construction, passive fund buying and market structure, with a tiny float and accelerated benchmark inclusion set to intensify demand.

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Bloomberg

HSBC's Kettner: Stocks Don't Need a Catalyst to Keep Rising

Stocks can continue climbing without a specific catalyst, despite recent volatility, as structural factors support higher valuations, according to HSBC Chief multi-asset strategist Max Kettner. "I don't think there needs to be a catalyst," said Kettner. He explained that we're in a world of structurally higher nominal growth, and structurally higher revenue growth, meaning if company margins don't change then earnings will continue to rise. Kettner joined Guy Johnson, Anna Edwards and Tom Mackenzie on "The Opening Trade."

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Bloomberg

Swiss Economy Depends on Foreign Workers: Economiesuisse

If Switzerland votes to cap the population at 10 million inhabitants, this could severely impact labor-intensive sectors like restaurants, construction, and healthcare, as well as innovative sectors like scientific research and product development, all of which depend 'heavily' on foreign workers, says Rudolf Minsch, Chief Economist at Swiss business sector umbrella organization Economiesuisse. He spoke on 'The Pulse with Francine Lacqua' on Bloomberg TV.

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