Stocks surged yesterday after the strong Arm Holdings (ARM) IPO. They’re slightly lower this morning along with crude oil. Gold and silver are up modestly, while Treasuries and the dollar are flat.
On the news front...
I’d call that “successful”! ARM shares soared 25% from their Initial Public Offering price in yesterday’s trading session, handing a win to SoftBank Group (SFTBY) and any fund or company lucky enough to get shares in the deal.
It also should help fuel more IPO activity in a year that has been desultory for Wall Street investment banks and private companies who have wanted to go public. Grocery delivery firm Instacart (CART) and data automation company Klaviyo (KVYO) are among the names hoping to raise money in public markets soon.
Is the pop in IPO activity “healthy” for markets longer term? I addressed that in a series of Tweets yesterday. You can get quick, intraday market updates by following my account on “X” at @RealMikeLarson and our MoneyShow account at @MoneyShow. But my short answer is “Yes”. The longer answer can be found here.
Well, it’s official. The United Auto Workers union struck all three of the major US automakers, walking off the job in three states after a midnight deadline passed with no new contract deal. The plan is to launch strategic strikes at different factories without prior notice, something the UAW hopes will turn up the heat on General Motors (GM), Ford Motor (F), and Stellantis NV (STLA), the company behind Chrysler, Fiat, Dodge, and Jeep vehicles, among others.
GM (Black), F (Blue), STLA (Orange)
1-Year Performance (%)
The union is seeking wage increases in the mid-30% range over a few years, while carmakers are offering 17.5% to 20%. Other issues include adjustments to retirement and health benefits, as well as inflation-fighting, cost-of-living increases. The economic impact of the strike will depend on its length and breadth. One firm, Anderson Economic Group, estimates a 10-day work stoppage could cost the economy $5.6 billion in lost wages, production, and costs to car owners, dealers, and employees.