IPOs ending the year with a bang

We are approaching the end of the year for the IPO business with a bang.

Overnight, OnDeck priced 10 million shares at $20, above the price talk of $16 to $18. Alternative lenders are hot. Last week's LendingClub IPO was also successful. LendingClub, however, is a peer-to-peer lender in the consumer space, while OnDeck is a lending platform for small businesses. Unlike LendingClub, it lends using its own money.

Read MoreSmall-business lender OnDeck raises $200 million in IPO

Rice Midstream Partners, a limited partnership that owns natural gas pipelines in the Marcellus Shale, priced 25 million shares at $16.50, below the price talk of $19 to $21. Energy prices are down, and all the Marcellus shale plays are falling. In theory, companies like Rice Midstream just collect a toll for moving oil through their pipelines. But the concern is that less oil might flow, and they may have to drop their prices.

By the way, there is one final IPO pricing tomorrow night for trading Friday. Juno Therapeutics is looking to price 9.3 million shares at $21 to $23, from price talk of $15 to $18. The company specializes in cancer immunotherapy, and what makes it interesting is it's proposed market cap: $2 billion. That would make it the most highly valued biotech IPO ever.

This has been quite a year for the IPO business. It's been the busiest since the record year of 2000. On Friday morning, I will have a summary of this year's IPO activity and a look ahead at 2015.


The November consumer price index was down 0.3 percent, lower than expected. Bond yields dropped, stock futures moved up fractionally.

This presents a bit of a problem for the Fed, as inflation below expectations creates an argument for keeping rates lower for longer than many anticipate. But that seems to be an over-reaction. Much of the CPI reading is due to lower oil prices. Consumers are paying up for services in general. CNBC viewers constantly complain to me about higher prices for food, for insurance, for healthcare, for education.

On top of that, the U.S. economy is clearly recovering. My sense is that the Fed is getting prepped to do something.

Read MoreFed on track to raise interest rates this summer: Survey

The market is expecting the Fed to remove the "considerable time" language and may be concerned if that is left in. The language could be replaced with something a bit more specific, something that suggests the Fed will raise rates when both inflation and employment return to target levels. The FOMC members may say they will be "patient," as they have before.

My bet is that the Fed sees clear signs the U.S. economy is improving and that they see the decline in oil as a real positive. All that speaks to the idea that the Fed will begin raising rates by June, and I'm not that worried if they do it in March or April even.

Bonds yields will drop and stocks will rise if the Fed leaves the language in.

  • Bob Pisani

    A CNBC reporter since 1990, Bob Pisani covers Wall Street from the floor of the New York Stock Exchange.

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