Coffee With Greta: Rally Fizzles


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DJIA Futures: -8 (-0.02%)

SPX Futures: -4 (-0.1%)

NASDAQ Futures: -36 (-0.2%)

Good morning friends!

Futures are slipping as traders attempt to hold-on to this week’s rally.

Let’s get right to it!

Arm Extends Gains After Debut

Arm Holdings (ARM) shares are up 1.8% ahead of the open after debuting on the Nasdaq Thursday. 

The stock began trading Thursday at $56.10 per share on Thursday after the company priced its IPO at $51 per share. 

ARM closed 24.7% higher at $63.59. 

That price puts the stock at a high premium.

With a $60 billion valuation, the price-to-earning multiple would be over 110 based on the most recent fiscal year profit. 

Nvidia (NVDA) for comparison currently trades at around 108 times earnings.

Workers Strike At Ford, GM, Stellantis Plants S

Ford (F) shares are falling 1.1%, General Motors (GM) shares are down 0.4%, and Stellantis (STLA) shares are up 0.6% in premarket trade as thousands of United Auto Workers Union members go on strike at three plants. 

Workers are on strike at assembly plants of all three companies after the union and automakers failed to reach a new labor contract Thursday night. 

At midnight eastern time the union posted on X, formerly Twitter, “The UAW Stand Up Strike begins at all three of the Big Three.”

The strike includes about 12,700 total workers at three plants:

  • GM’s midsize truck and full-size van plant in Wentzville, Missouri – 3,600 workers
  • Ford’s Ranger midsize pickup truck and Bronco SUV plant in Wayne, Michigan – 3,300 workers
  • Stellantis’ Jeep Wrangler and Gladiator plant in Toledo, Ohio – 5,800 workers

This is the first time the UAW has staged strikes at all three of the “Big Three” automakers at once.

Import Prices Jump

Import prices rose more than expected in August thanks to higher oil prices. 

The Bureau of Labor Statistics import price index jumped 0.5% vs 0.3% expected. 

That was the biggest increase in 15 months as foreign-produced fuel costs surged 6.7%. 

Excluding fuel though, import prices fell 0.1%.

The total cost of imports was down 3% year over year with nonfuel import prices falling 0.8%. 

Export prices rose 1.3% in August but are still down 5.5% compared to a year ago.

Key Manufacturing Gauge Rebounds

The New York Fed’s Empire State manufacturing index jumped 21 points this month to 1.9. 

That sharply beat economists’ expectations for -10 and reverses the 20.1 point drop in August. 

The new orders index jumped 25 points to 5.1 while shipments index rose 24.7 points to 12.4.

Unfilled orders rose 1.6 points to -5.2, a sign they are continuing to decline. 

The six-month expectations index jumped 6.4 points to 26.3, the highest reading in more than a year.

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