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S&P 500 emerges victorious despite Micron’s fall, inflation under watch By Investing.com

Investing.com– The S&P 500 notched a gain Thursday as investors weighed chipmaker Micron’s slide and consumer stocks’ gains on the eve of key inflation data.

At 4:00 p.m. ET (2000 GMT), it was up 36 points, or 0.1%, while adding 0.1% and rising 0.30%.

Micron Slips on Disappointing Forecast, Other Chipmakers Follow

Micron Technology (NASDAQ:) reported better-than-expected quarterly results, but those were overshadowed by in-line revenue guidance that disappointed investors who were expecting more, especially as Micron has more than doubled in value over the past year. Its stock fell more than 7%.

Other chipmaking stocks also fell, including market favorites Nvidia (NASDAQ:), Broadcom (NASDAQ:).

Casino stocks push consumer sector higher

Consumer stocks supported the broader market, supported by a rise in casino stocks including MGM Resorts International (NYSE:) and Caesars Entertainment Corporation (NASDAQ:) after the Nevada Gaming Control Board reported that revenues from Gaming grew 2.5% in the 12 months through May to $1.32 billion, while Las Vegas Strip casinos reported a 3.7% increase in gaming revenue in May.

Focus on economic data and the presidential debate

Losses remain minimal, however, as investors appear to be in something of a holding pattern ahead of key US inflation data and the upcoming presidential debate.

Capital spending on major U.S.-made capital goods fell unexpectedly in May, suggesting that business spending on equipment weakened in the second quarter as borrowing costs remained elevated.

However, initial applications in the United States declined last week, which could ease fears of a significant deterioration in the labor market.

However, most eyes will be on Friday’s inflation gauge, as it is widely considered the Federal Reserve’s preferred inflation gauge.

Markets were also on edge ahead of the first presidential debate of the year later Thursday between Democratic and Republican candidates Joe Biden and Donald Trump.

Levi Strauss, collapse of Walgreens Boots; Nike targeted benefits

Walgreens Boots Alliance (NASDAQ:) shares fell 22% after the drugstore chain cut its fiscal 2024 guidance due to a worse-than-expected retail environment and said it would close more stores as part of a strategic review.

Levi Strauss (NYSE:) shares fell 15% after the jeans maker reported lower-than-expected revenue for its fiscal second quarter, hurt by weak demand for Docker’s, its khaki and chino brand.

McCormick (NYSE:) shares rose 4% after the spice maker beat market expectations for second-quarter profit and sales, helped by strong demand for its spices and seasonings in Europe, the Middle East and Africa.

International Paper (NYSE:) shares fell 7% after Bloomberg reported that Suzano was no longer seeking to buy the paper and packaging group, with the Brazilian pulp giant apparently reaching its maximum price.

Nike (NYSE:) is expected to report its latest results after the close.

(Peter Nurse and Ambar Warrick contributed to this article.)

News Source : www.investing.com
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