Traders work on the floor of the New York Stock Exchange (NYSE), May 3, 2023.
Brendan McDermid | Reuters
Stock futures ticked up on Friday after markets rallied on the back of the latest IPO debut.
Futures connected to the Dow Jones Industrial Average added 94 points, or 0.27%. S&P 500 futures were up by 0.12 and Nasdaq 100 futures were off 0.1%.
Adobe fell 1.6% in extended trading even after posting better-than-expected quarterly results. Lennar edged down 0.6% despite a top-and-bottom line beat. The newly debuted Arm Holdings added nearly 7% in after-hours action.
Elsewhere, a United Auto Workers strike shut down three key plants impacting operations for GM in Wentzville, Missouri; Ford’s Ranger midsize pickup and Bronco SUV plant in Wayne, Michigan, and Stellantis’ Jepp operation in Toledo, Ohio.
Ford shares fell 1.7% in premarket trading, GM was off 1.5% while Stellantis rose 0.7%.
Stocks are coming off a winning session as Wall Street applauded a possible end to an extended technology IPO drought and assessed a fresh batch of economic data. The Dow jumped 331.58 points, or 0.96%, rising for the first time in three sessions and notching its best daily performance in over a month. The S&P 500 added 0.84%, while the Nasdaq Composite climbed 0.81%.
Arm soared nearly 25% during its market debut Thursday. The stock opened above its $51 per share IPO price and closed at $63.59, then climbed another 6.3% in premarket trading Friday.
In economic news, the headline producer price index rose 0.7% in August, coming in above economists’ expectations for 0.4%. However, the core PPI increased by 0.2%, in line with estimates.
“Core inflation still seems to be trending in the right direction,” said Mona Mahajan, a senior investment strategist at Edward Jones. “I think that’s a positive given the Fed does tend to look at core inflation, and historically has looked at core inflation more rigorously. I also think of course today, specifically the Arm IPO and the successful IPO, really kind of lifted animal spirits a bit.”
All major S&P 500 sectors finished positive, led to the upside by real estate. Health care was the worst performer, eking out a 0.25% gain. U.S. crude oil prices jumped nearly 2% and rose above $90 a barrel for the first time since November.
Stocks are headed for a winning week, with the Dow on pace for a nearly 1% gain and its second positive week in three. The S&P and Nasdaq have jumped about 1.1% and 1.2%, respectively, putting them on track for their third positive weeks in four.
Investors are looking ahead to another packed day for economic data. This includes a preliminary September consumer sentiment reading, as well as import and export prices for August. Industrial and manufacturing production data for August are also due.