The United Auto Workers union went on strike against the "Big Three" automakers and Arm shares gained after jumping nearly 25% in its first day of trading. Here’s what investors need to know today.
1. UAW Goes on Strikes Against Big Three Automakers
For the first time, the United Auto Workers union initiated a simultaneous strike against the Big Three Detroit car companies, with nearly 12,700 workers planning to stop working at targeted facilities. Strikes began after midnight at Ford’s (F) Bronco plant in Detroit, a Stellantis (STLA) Jeep factory in Toledo, Ohio, and a General Motors (GM) pickup plant in Missouri. Shares of Ford and GM fell 1.5% while Stellantis gained 0.6% in pre-market trading.
2. Arm Shares Rise After Successful IPO
Shares of Arm Holdings (ARM) were up nearly 5% in pre-market trading after the British chip designer’s initial public offering was a success, with shares rising close to 25% in the company’s first day of trading. Arm shares closed yesterday's session at $63.59, lifting Arm's market capitalization over $65 billion.
3. Used Car Retailers Carvana, CarMax Gain as Auto Workers Strike
Shares of used car retailers climbed as negotiations between auto workers and Detroit car makers stalled. Carvana (CVNA) shares gained 0.7% in pre-market trading after surging more than 13% in the prior session, while CarMax (KMX) shares were unchanged in the pre-market after a 4% gain yesterday.
4. Adobe Earnings, Revenue Beat Estimates on New AI Tools
Content creation software Adobe (ADBE) posted earnings that were slightly ahead of analyst estimates as it promoted a new suite of artificial intelligence (AI) tools for its products. For the quarter ended in September 1, Adobe reported revenue of $4.89 billion, a 10% increase over the same quarter last year and above analyst estimates of $4.87 billion, while its adjusted earnings of $4.09 a share was better than analyst calls of $3.98 a share. Adobe shares fell 2% in pre-market trading.
5. Preliminary Michigan Consumer Sentiment Reading Expected to Show Decline
The preliminary September reading of the Michigan Consumer Sentiment Index is projected to show a drop to 69.2 from 69.5 a month prior when it is released at 10 a.m. ET. U.S. import prices are forecast to have grown 0.3% in August, compared with 0.4% in July, when that data is released at 8:30 a.m. ET, while at 10 a.m. ET, August’s industrial production is expected to increase 0.2%, down from July’s 1% increase.