Pre-market actions: state-of-the-art IPOs continue to arrive

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The latest: Unity Software, which makes programs for video game designers, valued its IPO at $ 52 per share on Thursday. The public offering will bring in at least $ 1.3 billion. Last week, the company said it expected a stock price to be between $ 34 and $ 42.

The stock is expected to start trading on the New York Stock Exchange on Friday under the symbol “U”.

Overview: Snowflake caused a stir earlier this week when it pegged its initial public offering at $ 120 a share – well above the expected range of $ 100 to $ 110. Stocks soared 112% on their first trade.

Another small software tools developer, JFrog, also went public on Wednesday and did well. The shares are up almost 50% from their IPO price.

Snowflake shares fell 10% on Thursday, while JFrog held on.Watch this space: Investors can’t seem to get enough of new tech names just yet. The Renaissance IPO ETF, which tracks recently traded US companies, has jumped nearly 60% this year. The S&P 500, meanwhile, is up about 4%.

Remember: The busy month for new announcements must continue, with covert data analytics company Palantir and the Asana work app at your fingertips.

Can TikTok and Oracle take it home?

A deal for TikTok to continue operating in the United States is underway, although it all hinges on getting approval from Washington and Beijing.

What’s happening: U.S. regulators have tentatively reached a deal with Chinese video app parent company ByteDance and potential U.S. partner Oracle, a person familiar with the matter told CNN Business.

Details, Details: If the arrangement gets a formal green light, ByteDance would continue to be the majority shareholder of the short video app, report my CNN Business colleagues Brian Fung and Selina Wang. TikTok would establish its headquarters in the United States, while Oracle would host TikTok user data and review TikTok’s code for security.

According to the proposal, the U.S. government would approve TikTok’s board members and the company planned to file an initial public offering on a U.S. stock exchange in about 12 months, the person said.

But a lot of uncertainty remains – which means now is a good time to take a step back.

How did we get here?

The frenzy began in early August when Trump signed an executive order that would effectively ban TikTok in the United States unless ByteDance could find a U.S. owner for its U.S. operations by September 20.

The Trump administration has expressed concerns that the hugely popular app could be used as a spy tool by Beijing. TikTok has denied these claims. The company said its data centers are located entirely outside of China and none of that data is subject to Chinese law.

Oracle’s announcement came days before the executive order took effect. Some experts believe the proposed deal could be helped by Trump’s ties to co-founder Larry Ellison, a supporter of the president. CEO Safra Katz also donated to Trump’s reelection bid.

Why is this important?

The fight for TikTok is bigger than who owns an app popular with Gen Z. It’s also about the future of US-China relations, and the obscure new rules that companies are being forced to navigate as well. as tensions between the world’s two largest economies intensify.

You can read a full explainer of CNN Business here.

Warehouse chain surpasses Amazon

For years, Costco dominated the world of warehouse clubs, where members pay an annual membership fee to purchase large quantities of merchandise at low prices. But a much smaller chain is gaining momentum as shoppers stock up on groceries in the pandemic: BJ’s Wholesale Club.

Dashboard: The chain increased sales in stores open for at least a year by 24% to $ 3.9 billion in its most recent quarter, faster than the growth reported by Costco and the Sam’s Club owned by Walmart during the same period, reports my CNN Business colleague Nathaniel Meyersohn. BJ’s said its “digitally activated sales” – including same-day delivery via Instacart and curbside pickup – have increased by more than 300%.

Investors are paying attention. BJ shares are up nearly 72% this year, edging out Amazon, which gained 63%, and Costco, which is 15% higher.

BJ grew slowly before the pandemic. Sales have increased by around 3% over the past two years. But the chain has benefited from two key trends: consumers eat more meals at home when restaurants close, and consumers buy wholesale when they shop.

“The consumer mindset during the peak months or times of the pandemic fits the club model perfectly,” Morgan Stanley analyst Simeon Gutman told Nathaniel.

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The University of Michigan U.S. Consumer Sentiment Survey for September releases at 10 a.m. ET.

Coming next week: Can a shaky economic recovery continue as global coronavirus deaths near one million?

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