Stock futures showed mostly positive movement on Friday as investors assessed the effects of the strike initiated by workers at the Big Three auto companies. Additionally, market sentiment received an early boost from better-than-expected economic data out of China.
Key Stock Movements:
- Ford (F) experienced a 1.7% decline.
- General Motors (GM) saw a 1.9% decrease.
- Stellantis (STLA) witnessed a slight dip of 0.4%.
- Carvana (CVNA) rose by 1.6%.
- CarMax (KMX) showed a marginal increase during premarket trading.
- Arm Holdings (ARM) surged by 8.9% to trade at $69.24 during premarket hours.
Potential Impact of Auto Workers Strike:
The United Auto Workers union initiated its first-ever partial strike against the three major car manufacturers due to the failure to reach a new contract agreement before the midnight deadline on Thursday. This led to declines in stock prices for Ford, General Motors, and Stellantis. Interestingly, in anticipation of the strike, shares of used-car retailers Carvana and CarMax experienced significant jumps of 13% and 4%, respectively, on Thursday.
Strong Start for Arm Holdings After IPO:
Arm Holdings, a leading U.K.-based chip design company, witnessed a significant rise in its stock price. On its first day of trading, the company closed at $63.59, which was 25% above the initial public offering (IPO) price. The successful IPO was regarded as the largest of the year for Arm Holdings, known for providing chip designs to various semiconductor manufacturers, including those used in almost every current smartphone.
Adobe Reports Impressive Fiscal Third-Quarter Results:
Software company Adobe announced better-than-expected fiscal third-quarter adjusted earnings of $4.09 per share on revenue totaling $4.89 billion. Analysts had estimated earnings of $3.98 per share on revenue of $4.87 billion. Additionally, Adobe predicted fourth-quarter earnings ranging from $4.10 to $4.15 per share, with revenue expected to fall between $4.98 billion and $5.03 billion. Notably, Wall Street’s forecasts for the fourth quarter were slightly lower, with earnings of $4.06 per share on revenue of $5 billion. Following the announcement, Adobe’s shares experienced a slight decline of 1.8%.
Positive Earnings and Revenue Results for Lennar:
In terms of fiscal third-quarter earnings and revenue, home builder Lennar surpassed analysts’ expectations. Although revenue decreased by 2% compared to the same period the previous year, home deliveries increased by 8% and new orders saw a substantial surge of 37%. Lennar’s CEO, Stuart Miller, characterized market conditions as “constructive” for new homebuilders during the third quarter. Despite the positive performance, the company’s stock experienced a minor decline of 0.2%.
