Stock futures rose on Friday following a market rally driven by the latest initial public offering (IPO) debut. Dow Jones futures gained 94 points, or 0.27%, while S&P 500 futures were up 0.12% and Nasdaq 100 futures were down 0.1%. Adobe and Lennar both saw declines in extended trading despite beating quarterly results expectations. Arm Holdings, on the other hand, traded near flat in premarket trading after its successful IPO. The three plants affected by the United Auto Workers strike impacted operations for General Motors, Ford, and Stellantis. Ford shares fell 1.7% in premarket trading, GM was down 1.5%, and Stellantis rose 0.7%. Stocks are coming off a winning session as Wall Street reacted positively to the end of a technology IPO drought and analyzed economic data. The Dow jumped 331.58 points, the S&P 500 added 0.84%, and the Nasdaq Composite climbed 0.81%. In economic news, the headline producer price index rose 0.7% in August, while the core PPI increased by 0.2%. All major S&P 500 sectors finished positive, with real estate leading the way. Health care was the worst performer, gaining only 0.25%. U.S. crude oil prices rose nearly 2% and exceeded $90 a barrel. Stocks are headed for a winning week, with the Dow on track for a nearly 1% gain. The S&P and Nasdaq have also seen positive gains.
Source: CNBC, Labor Department
Import Costs Rise at Fastest Pace in Over a Year
The U.S. Department of Labor reported that prices for imported goods saw the highest monthly gain since May 2022. Import costs rose 0.5% in August, exceeding expectations of 0.3% and the 0.1% gain in July. Fuel prices increased by 6.7%, the largest gain since March 2022, contributing to the overall increase. Export prices also rose significantly, with a 1.3% increase, the largest upward movement since May 2022. Despite the sharp increase, import prices were still down 3% from the previous year, and exports fell 5.5%.
Oil Prices Reach 2023 Highs
On Friday, oil prices reached highs that haven’t been seen this year. West Texas International crude hit a price of $91.15 per barrel, the highest since November 8, 2022. Brent crude reached as high as $94.63 per barrel, its highest price since November 16, 2022. Both types of crude oil are on track to finish the week up more than 3%, marking the third consecutive positive week for both.
New York Manufacturing Gauge Beats Expectations
According to a Federal Reserve report, manufacturing activity in the New York area improved more than expected in September. The Empire State Manufacturing Survey, which measures the difference between companies reporting expansion and contraction, rose to 1.9, an increase of 21 points from July. This reading indicates a sector that is barely growing, though it is an improvement from the previous month. General business conditions, new orders, and shipments all saw significant improvements of more than 20 points. On the inflation front, both prices paid and received increased, while employment saw a small decrease.
Needham Initiates Coverage of Arm Holdings
Analyst firm Needham initiated coverage of Arm Holdings stock with a hold rating. The firm believes that the stock may already be fully valued, with viable alternatives to Arm existing in new growth areas. While Arm can still capture greater value from smartphones, it may not be enough to support upside from the stock’s IPO valuation. Arm Holdings’ shares rose 4.5% in premarket trading.
UAW Launches Strike Against Three Key Factories
Auto workers initiated a strike, causing the shutdown of operations for Ford, GM, and Stellantis. After failing to reach a deal with management, the United Auto Workers targeted three key facilities: a GM plant in Wentzville, Missouri; Ford’s operation in Wayne, Michigan; and a Stellantis Jeep Wrangler and Gladiator operation in Toledo, Ohio. Approximately 12,700 workers walked out of these facilities, which produce highly profitable vehicles for the automakers. The UAW president, Shawn Fain, stated that they will continue the strike until they achieve their share of economic justice.