1. Market Update May 4th, 2017 Edward Low, SK Ra
Executive Committee Members
Market Update
May 4th, 2017

2. Headlines Fed holds interest rates steady, leaves June hike on table
Fed dismissed recent slumps in both economic and job growth as temporary blips
Fed officials expect to raise rates two more times this year, and investors see a 71% probability of a move by June
The Fed agreed in March that they will begin shrinking its roughly $4.5 trillion portfolio of bonds and other assets, and the market is looking for clues when this will begin
Jay Clayton Confirmed as SEC Chairman
The Senate on Tuesday approved President Trump’s choice with a vote of 61 to 37
Wall Street lawyer will now police many of the same large banks that he spent decades representing, including firms like Goldman Sachs
Market predicts that he will look to reverse the two-decade trend of new regulations on public companies, and will have the support of stock exchanges and business trade groups
Twitter Announces New Live Video Deals
On Monday, Twitter unveiled partnerships with companies such as Buzzfeed, Vox Media, MLB Advanced Media, and Live Nation
Buzzfeed will host a morning current events show, while Vox media will create a weekly show dedicated to gadgets, and WNBA will live-stream 20 regular-season games
Rivals like Facebook and Snap have been moving into licensing live video streaming

3. Company of the Week: Floor & Decor (NYSE: FND)
Floor & Decor closes successful IPO
Floor & Decor is a warehouse style retailer of hard floor covering, competing against Home Depot and Lowe’s
Floor & Decor issued 8.8million shares at $21 to raise $185million, which will be used primarily to pay down debt
Shares opened at $30.25, reflecting a 44% jump from the offer price of $21, the largest opening jump for a US listing this year
Rare Robust Growth for a Brick-and-Mortar Retailer
At a time when brick-and-mortar stores are struggling, Floor & Decor has grown to 72 retail stores across 17 states and is rolling out more stores
Floor & Decor recorded eight consecutive years of double digit comparable store growth, averaging 15.3% a year
Sales surpassed $1billion in 2016, from just above $300million in 2012
A Profitable IPO in an Era of Tech and Digital Media IPOs
Amidst IPOs by tech companies that are not profitable, Floor & Decor is a rare retailer IPO that has been consistently profitable for the past five years

4. Market of the Week: S&P 500
Earnings growth for S&P 500 companies in first quarter is poised to clock in at 12.5% from a year earlier, the best rate since the third quarter of 2011
Some 64% of companies have bested estimates of sales growth, above the long-term average of 59.5%
Solid earnings are a sign of encouragement for investors amongst doubts about the implementation of tax cuts and a recent spate of lackluster U.S. economic reports

5. Up Next: Credit Suisse
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