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Markets Gets a Shot in the ARM; ADBE, LEN Beat in Q3
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So apparently there was a market catalyst today, after all — which had nothing to do with this morning’s PPI numbers: the brand-new IPO of chip-designer Arm Holdings(ARM). The company originally sold for $32 billion to SoftBank in 2016, back when its ticker was ARMH. Today, after listing at $51 per share, the company gained +24.7% and closed at $63.59 per share. Not bad for a day’s work.
The Dow closed +331 points, +0.9% on the session, while the S&P 500 and Nasdaq both grew +0.8%. The small-cap Russell 2000 outperformed the rest, +1.4% on the day. We are now close to one-month highs, which had proven elusive in the difficult trading month of August, and the first week-and-a-half of September. Which is good, because the PPI numbers were a little hotter than expected in this ongoing “good news is bad news” narrative, and had it taken up more of the oxygen in the room today, people would have been speculating about the Fed jacking up interest rates unexpectedly next week to fight inflation.
Thankfully, this didn’t happen. Although, without this new IPO news, who knows? In any case, this is now the fifth Initial Public Offering in a month — after years of desert sand by way of a Covid pandemic, rapidly rising banking costs, and failure of more-recent IPOs not being able to breakthrough on the stock market meaningfully — and it’s the most high-profile of the five so far. Late trading had been giving back some of these first-day gains for Arm, but has now turned positive again.
Adobe Systems (ADBE - Free Report) posted a good ol’ fashioned beat-and-raise for its fiscal Q3 earnings report this afternoon, with earnings of $4.09 per share outpacing the $3.97 expected and $3.40 per share in the year-ago quarter on $4.89 billion in revenue, which improved on the $.85 billion in the Zacks consensus. Next-quarter guidance has swelled to ranges of $4.10-4.15 earnings per share on $4.98-5.03 billion in sales, above the $4.03 per share and $4.98 billion anticipated, respectively. Shares are selling off modestly on the news, but are up roughly +64% year to date.
Lennar Home (LEN - Free Report) also outperformed expectations on both top and bottom lines after the closing bell this afternoon, with earnings of $3.87 per share beating the Zacks consensus by 40 cents on revenues of $8.7 billion in the quarter bettering the $8.53 billion expected. New Orders grew +37% in the quarter, while Deliveries were +8%. The company also bought back 3 million shares in the quarter. After shooting up in late trading on the news, the stock has come back down to Thursday’s closing price at this hour.
Image: Bigstock
Markets Gets a Shot in the ARM; ADBE, LEN Beat in Q3
So apparently there was a market catalyst today, after all — which had nothing to do with this morning’s PPI numbers: the brand-new IPO of chip-designer Arm Holdings (ARM). The company originally sold for $32 billion to SoftBank in 2016, back when its ticker was ARMH. Today, after listing at $51 per share, the company gained +24.7% and closed at $63.59 per share. Not bad for a day’s work.
The Dow closed +331 points, +0.9% on the session, while the S&P 500 and Nasdaq both grew +0.8%. The small-cap Russell 2000 outperformed the rest, +1.4% on the day. We are now close to one-month highs, which had proven elusive in the difficult trading month of August, and the first week-and-a-half of September. Which is good, because the PPI numbers were a little hotter than expected in this ongoing “good news is bad news” narrative, and had it taken up more of the oxygen in the room today, people would have been speculating about the Fed jacking up interest rates unexpectedly next week to fight inflation.
Thankfully, this didn’t happen. Although, without this new IPO news, who knows? In any case, this is now the fifth Initial Public Offering in a month — after years of desert sand by way of a Covid pandemic, rapidly rising banking costs, and failure of more-recent IPOs not being able to breakthrough on the stock market meaningfully — and it’s the most high-profile of the five so far. Late trading had been giving back some of these first-day gains for Arm, but has now turned positive again.
Adobe Systems (ADBE - Free Report) posted a good ol’ fashioned beat-and-raise for its fiscal Q3 earnings report this afternoon, with earnings of $4.09 per share outpacing the $3.97 expected and $3.40 per share in the year-ago quarter on $4.89 billion in revenue, which improved on the $.85 billion in the Zacks consensus. Next-quarter guidance has swelled to ranges of $4.10-4.15 earnings per share on $4.98-5.03 billion in sales, above the $4.03 per share and $4.98 billion anticipated, respectively. Shares are selling off modestly on the news, but are up roughly +64% year to date.
Lennar Home (LEN - Free Report) also outperformed expectations on both top and bottom lines after the closing bell this afternoon, with earnings of $3.87 per share beating the Zacks consensus by 40 cents on revenues of $8.7 billion in the quarter bettering the $8.53 billion expected. New Orders grew +37% in the quarter, while Deliveries were +8%. The company also bought back 3 million shares in the quarter. After shooting up in late trading on the news, the stock has come back down to Thursday’s closing price at this hour.
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