Markets look to break all-time highs | Beyond Meat bubble? | Kudlow’s 3% growth plans

TUE, JUN 11, 2019

EVENING BRIEF

AS OF TUE, JUN 11, 2019 • 04:00 ET

DJIA		26048.91
		-0.05%	-13.77

S&P 500		2885.71
		-0.04%	-1.02

NASDAQ		7822.57
		-0.01%	-0.60

Most Active

DOW
NAME	LAST	CHG	%CHG
AAPL	194.81	+2.23	+1.16%
CSCO	57.11	+0.69	+1.22%
MSFT	132.10	-0.50	-0.38%

S&P 500
NAME	LAST	CHG	%CHG
AMD	32.41	-0.82	-2.47%
GE	10.12	+0.07	+0.70%
BAC	28.23	+0.17	+0.59%

NASDAQ
NAME	LAST	CHG	%CHG
AMD	32.41	-0.82	-2.47%
SIRI	5.49	+0.06	+1.10%
AAPL	194.81	+2.23	+1.16%

EDITOR'S NOTE

Major indexes are close to breaking through all-time highs. There's one notable newcomer and outperformer in this year's rally: Beyond Meat.

The maker of a plant-based meat substitute has surged more than 420% from its initial public offering price of $25. The upward momentum has caused short sellers to lose more than $400 million betting against the stock since it went public, according to research firm S3 Partners. Shares of Beyond Meat got a slight reality check Tuesday after J.P. Morgan, which was the lead underwriter for the red-hot May IPO, downgraded the stock to neutral from overweight. The stock is "beyond our price target," J.P. Morgan analyst Ken Goldman said in a note to clients. Shares pulled back about 20% following that note.

The company has been an outlier in a year of relatively disappointing public offerings. Uber stumbled in its debut and is trading around its opening price of $42 per share, while Lyft's shares are well below their March IPO price. Beyond Meat topped analysts' expectations in its first quarterly report since going public, and projected that its revenue will more than double in 2019, along with growing demand. Investors have been drawn to the idea of a growing appetite for meat alternatives. But it's an increasingly crowded market.

JJ Kinahan, chief market strategist at TD Ameritrade, said the Beyond Meat rally has been driven mostly by retail investors, which can often indicate a bubble. As Kinahan told CNBC this week, "When something goes straight up like this without some sort of pullback, it makes me cautious." His advice? Like bitcoin, make sure a Beyond Meat allocation is in a relatively smaller, risk-on portion of your portfolio.