July 14, 2024

Westside People

Complete News World

Stocks fluctuate after key data with Micron falling

Stocks fluctuate after key data with Micron falling

US stocks fluctuated on Thursday after chipmaker Micron’s outlook dampened hopes for a tech rally, as investors weighed new economic data ahead of a key inflation reading for Federal Reserve policy.

The S&P 500 (^GSPC) was little changed after rising on Wednesday, closing not far from a new all-time high. The Dow Jones Industrial Average (^DJI) is hovering around the flat line, while the Nasdaq Composite (^IXIC) is up 0.1%.

Shares are struggling in the wake of Micron’s sales forecast for the current quarter, which met expectations but failed to satisfy investors looking for stellar outperformance from AI-related companies.

The bullish trend around artificial intelligence has helped lift the S&P 500 to a 15% gain this year. But concerns are growing that the rally could be in jeopardy if the group of technology companies driving most of these gains stops beating already high expectations.

Shares of memory maker Micron fell more than 4% in early trading. Nvidia (NVDA) stock fell about 1%, reviving fears of a return to the sell-off that rocked markets last week.

Investors were weighing a new batch of economic data ahead of Friday’s PCE inflation reading that will influence the Federal Reserve’s thinking on the timing of interest rate cuts.

The initial weekly unemployment claims reading came in at 233,000, a decrease of 6,000 from the previous week. according to Labor Department data. The print came in below consensus expectations of 235,000. But repeat jobless claims rose to their highest level since late 2021, suggesting the unemployed are taking longer to find work.

See also  Hours and Wonders 2024: Highlights

Real GDP growth at an annual rate of 1.4% in the first quarter of 2024 Third estimate It was issued by the Office of Economic Development Thursday morning. The reading was slightly higher than the previous estimate of 1.3%.

Inflation could also loom large in the first debate between President Joe Biden and former President Donald Trump on Thursday night.

On the corporate front, shares of Levi Strauss ( LEVI ) fell more than 15% in the wake of the jeans retailer’s second-quarter revenue loss. Investors will look to Nike’s (NKE) quarterly results after the bell for further signs of consumer resilience.

He lives3 updates

  • Netflix and Meta are helping push the Nasdaq into the green

    Telecom stocks lifted the Nasdaq Composite (^IXIC) into positive territory, up 0.3% shortly after the market opened on Thursday.

    Shares of Netflix (NFLX) and Meta (META) rose more than 1%, helping lift a tech-heavy sector that had previously fallen below the flat line.

    The S&P 500 (^GSPC) rose 0.2% while the Dow Jones Industrial Average (^DJI) was little changed.

    Meanwhile, shares of chip giant Nvidia ( NVDA ) fell slightly after Micron ( MU ) sales forecasts failed to galvanize investors over the AI ​​craze that has fueled the broader market’s rally this year.

  • Stocks swing at open as investors weigh economic data, Micron puts cap on tech rally

    Stocks opened slightly lower Thursday morning after the GDP reading for the first quarter of 2024 came in slightly higher than the previous reading for the same three-month period.

    The S&P 500 (^GSPC) was little changed while the Dow Jones Industrial Average (^DJI) fell 0.1%. The Nasdaq Composite (^IXIC) fell just below the flat line.

    Real GDP growth at an annual rate of 1.4% in the first quarter of 2024 Third estimate It was issued by the Office of Economic Development Thursday morning. The reading was slightly higher than the previous estimate of 1.3%.

    The initial weekly unemployment claims reading came in at 233,000, a decrease of 6,000 from the previous week. according to Ministry of Labor data.

    On the corporate front, chipmaker Micron’s (MU) sales forecast for the current quarter met expectations but failed to satisfy investors looking for stellar outperformance from AI-related companies. The stock fell about 4% in early trading. AI chip giant Nvidia (NVDA) was also down nearly 1% at the open.

  • Why does quarter levy bother me?

    Shares of Levi’s (LEVI) fell 15% in the pre-market session after the earnings announcement.

    I think it’s worth it for two reasons.

    First, sales in China fell by 10% from the previous year. I recently spoke with a large number of people who recently visited China. One theme is that Chinese consumers are feeling the gloomy side and are not spending as much as in years past. This mood is impacting demand for Levi’s jeans, Starbucks (SBUX) coffee and — according to General Mills’ (GIS) earnings call yesterday — Häagen-Dazs ice cream.

    It is difficult to see the turning point in China.

    The same goes for Levi’s wholesale business, or the business that sells in department stores. Sales decreased 4% from the previous year. The company’s comment indicates that bulk order may not continue until 2025.

    I plan to raise some of my concerns with Levi CFO Harmit Singh today at 10:30 AM ET on Yahoo Finance. Tune in!