Twitter Stock- Why AMC shares fell 18 percent in Thursday’s wild trading session
CNBC.com’s Pippa Stevens brings you the day’s top business news headlines. On today’s show, CNBC’s digital video team takes a look at another wild trading session for AMC, which announced Thursday it was selling 11.5 million shares after its stock rose more than 420 percent in the past month. Plus, CNBC’s Kate Rogers explains why coffee appears to be the latest commodity seeing prices soar, and what it means for your daily caffeine fix.
Here’s what else happened in business news today:
AMC says it has already completed share offering, raises $587 million
AMC Entertainment said it has completed its new stock offering announced just Thursday morning, raising $587.4 million in additional capital.
The company said it sold 11.55 million shares at an average price of approximately $50.85 per share in an at-the-market equity program launched earlier Thursday.
When AMC announced the offering, it said in a filing it may sell some of the 11 million shares “from time to time.” Apparently that time was now as it completed the offering in about three hours.
May jobs data expected to be strong, and could add to Fed debate on tapering bond buying
Job growth in May is expected to be more than double the pace of April, with hiring picking up in pandemic hit sectors like retail and restaurants but also more broadly across the economy.
Economists expect 671,000 jobs were added in May, up from 266,000 payrolls in April, about a quarter of what was expected, according to Dow Jones. The unemployment rate is expected to slip to 5.9% from 6.1% in April. Average hourly wages are expected to increase by 0.2%.
The monthly employment report could be important in setting the stage for the Federal Reserve’s June meeting, where some strategists believe there’s a chance the central bank could signal how close it is to discussing tapering its bond buying program.
Twitter launches its first subscription service
Twitter announced on Thursday the launch of Twitter Blue, the company’s first subscription service designed for power users willing to pay a monthly fee for exclusive features.
It’s the company’s first attempt at a subscription business model and could diversify Twitter’s revenue streams. Advertising makes up more than 86% of Twitter’s revenue, according to its first-quarter earnings report.