The S&P 500 ended higher on Thursday as hotter-than-expected economic data eased worries about a recession without raising fears of a Federal Reserve rate hike next week, while Arm Holdings soared in its stock market debut.
Market Snapshot
The S&P 500 climbed 0.84% to end the session at 4,505.17 points. The Nasdaq gained 0.81% to 13,926.05 points, while the Dow Jones Industrial Average rose 0.96% to 34,907.51 points. It was the Dow's biggest daily percentage gain since Aug. 7.
Market Movers
Arm Holdings (ARM) opened at $56.10,10% above its initial public offering price of $51 a share. The stock closed up 25% at $63.59. After Arm’s debut, shares of fellow chip makers traded mixed. Nvidia (NVDA) rose 0.2%, U.S.-listed shares of Taiwan Semiconductor Manufacturing (TSM) gained 0.8%, Intel (INTC) was down 0.1%, and Qualcomm (QCOM) rose 1.2%.
Norwegian Cruise Line (NCLH) and Carnival (CCL) were upgraded to Buy from Neutral at Redburn. Norwegian stock gained 5.7%, while Carnival was up 4.1%. The Redburn analysts maintained their recommendation on Royal Caribbean (RCL) at Neutral. Royal Caribbean gained 2.5%.
HP Inc. (HPQ) closed down 1.8% after Warren Buffett’s Berkshire Hathaway (BRK.B) disclosed it sold 5.5 million shares of the maker of personal computers and printers. It was the first sale of stock in HPInc. since Berkshire Hathaway accumulated a 12% stake in the company in the early part of 2022.
Semtech (SMTC), the semiconductor supplier, forecast a fiscal third-quarter loss of 9 cents to 22 cents a share on revenue of $190 million to $210 million. Analysts had been estimating adjusted earnings of 12 cents a share on revenue of $247.7 million. The stock, however, rose 10.1% after falling earlier in the session.
Etsy (ETSY) rose 3.3% to $66.68 after the online marketplace was upgraded to Outperform from Peer Perform at Wolfe Research with a price target of $100.
AT&T (T) jumped 3% after the telecom company said it expects third-quarter free cash flow of $4.5 billion to $5 billion.
First Solar (FSLR) gained 3.8% after the solar technology company was upgraded to Outperform from Market Perform at BMO Capital. The stock fell 5.8% on Wednesday.
AMC Entertainment (AMC) fell 1.2% after the movie-theater chain completed an at-the-market equity offering, raising about $325.5 million.
Shares of TradeUP Acquisition Corp. (UPTD) surged 67 percent on Thursday despite a lack of company-specific news. On Aug. 19, the company announced an extension to the date by which it must complete its initial business combination from Aug. 19 to Sept. 19, 2023. TradeUP Acquisition shares have grabbed the attention of retail investors, and the stock is the top trending ticker on Stocktwits at one time.
Ford (F) was down 0.2% and General Motors (GM) was flat ahead of a deadline late Thursday for a strike by the United Auto Workers union. Shawn Fain, the head of the UAW, said late Wednesday the union and the Big Three automakers, including Stellantis (STLA), were still “very far apart” on the union’s key priorities for wage increases, and that the UAW was preparing to strike all three companies using new tactics after 11:59 p.m. on Thursday.
Delta Air Lines (DAL) was down 0.6%. The airline cut its third-quarter earnings guidance to a range of $1.85 to $2.05 a share from a prior range of $2.20 to $2.50 but its revenue outlook was upbeat.
Market News
SoftBank's Arm soars nearly 25% in market debut to $65 billion valuation
Shares in SoftBank's Arm Holdings soared almost 25% above their Nasdaq debut price on Thursday, rekindling investor hopes for a turnaround in the moribund market for initial public offerings (IPO).
The stock, which had opened at $56.10, notched a 24.69% gain to close at $63.59, giving the British chip designer a valuation of $65 billion in its return to public markets following a seven-year absence. The IPO had priced at $51.
UAW nears strike at Detroit Three as Ford blasts union
A first-ever simultaneous strike at the Detroit Three carmakers by the United Auto Workers grew all but certain on Thursday with little progress reported in talks hours before a contract deadline expires.
The union - which represents 146,000 U.S. auto workers - is asking for 40% pay raises through September 2027 and major improvements in benefits as part of what it calls "audacious" demands.
The UAW has outlined plans for a series of strikes targeting individual, undisclosed U.S. auto plants if agreements are not reached by 11:59 pm ET Thursday, rather than a full walkout. The union plans to disclose the initial plants during a 10 p.m. ET event.
Disney to cut target for Disney+ streaming subscribers
Walt Disney Co. expects to fall tens of millions of subscribers short of its last publicly stated 2024 target for the Disney+ streaming service, according to people familiar with the matter.
The goal of 215 million to 245 million subscribers was set in August 2022 by then-Chief Executive Officer Bob Chapek. In February, returning CEO Bob Iger said Disney would no longer provide subscriber forecasts, matching a decision at Netflix Inc.
Disney+ has been losing customers to price increases, as well as collapsing demand in India after the company failed to win cricket streaming rights. That’s led management to conclude it will fall short of those earlier numbers, said the people, who asked not to be identified discussing internal targets.
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