Dow Jones Today: Stock Futures Slip as Micron Falls

Stock Indexes Wrap: Big Tech Advances as Nvidia, Financials Lag

2 minutes ago

The Dow

Salesforce (CRM) climbed 4% as it hosted its annual shareholder meeting. 

Amazon (AMZN) continued to advance after surpassing a $2 trillion market cap yesterday. It gained 2.2%. 

Nike (NKE) ticked up 0.2% ahead of its quarterly earnings report after the bell. 

The financial sector led the index’s laggards. Visa (V) slid 2.6% and Goldman Sachs (GS) fell 2.2% after the Federal Reserve’s annual bank stress test found America’s banks could weather a severe recession but would suffer greater losses now than they would have a year ago. 

S&P 500

Super Micro Computer (SMCI) led the index, rising 7.1%. 

Cybersecurity stocks also advanced, led by Palo Alto Networks (PANW), up 4.8%, and Arista Networks (ANET), up 3.9%. 

McCormick & Co. (MKC) gained 4.3% after the spice maker reported better-than-expected quarterly earnings. 

Walgreens (WBA) tumbled 22.3% after missing earrings estimates and cutting its full-year outlook amid a weak consumer outlook. Rival CVS Health (CVS) shed 3.7%.

Micron (MU) slid 7.1% after reporting earnings below Wall Street estimates and offering disappointing revenue guidance.

International Paper (IP) slumped 7.2% after Brazilian rival Suzano called off its efforts to acquire the paper and pulp company. 

Nasdaq 100

Cybersecurity and software names led the index. ZScaler (ZS) advanced 5.8%, while Adobe (ADBE) added 3.4%, and Intuit (INTU) rose 2.2%. 

Nvidia (NVDA) slid 1.9%, following fellow AI infrastructure supplier Micron lower. 

Levi Strauss Stock Slumps After Slight Revenue Miss

1 hr 13 min ago

Shares of Levi Strauss (LEVI) cratered Thursday, a day after the jeans maker missed sales estimates and kept its guidance steady on weakness in wholesale revenue and demand for its Dockers brand. 

The company reported second-quarter revenue rose 7.8% to $1.44 billion, slightly short of the $1.45 billion expected by analysts surveyed by Visible Alpha. Adjusted earnings per share (EPS) of $0.16 exceeded forecasts.

Company executives explained in the call with analysts that the Dockers brand underperformed in the period, impacting overall sales. “Dockers was down 1% on an adjusted basis, coming in below our expectations,” Chief Executive Officer (CEO) Michelle Gass said.

Shares of Levi Strauss had risen nearly 40% for 2024 through Wednesday’s close, but had sunk more than 16% as of Thursday afternoon.

–Bill McColl

International Paper Stock Tumbles as Brazil’s Suzano Ends Takeover Effort

2 hr 37 min ago

International Paper (IP) shares sank in intraday trading Thursday after Brazilian pulp and paper provider Suzano announced that it was no longer pursuing a purchase of its American rival.

Suzano Chief Financial Officer (CFO) Marcelo Feriozzi Bacci blamed the breakdown on International Paper. He wrote in a regulatory filing that his firm “has reached what it believes to be the maximum price for the transaction to generate value for Suzano, without engagement from the other party.

Shares of International Paper jumped last month following reports, including from Reuters, that Suzano had proposed a $15 billion, all-cash offer for the company.

Shares of International Paper sank more than 8% Thursday afternoon but are 20% higher year-to-date.

–Bill McColl

What Could the Stress Test Mean for Bank Investors?

3 hr 44 min ago

The results of the Federal Reserve’s annual U.S. bank stress test are out, dispelling some uncertainty that hung over the nation’s largest financial institutions and possibly setting the stage for banks to resume capital returns. 

According to Wedbush analysts, the Fed asked banks to hold off on discussing their buyback and dividend plans until after this week. And many banks, they wrote, had “paused buybacks until regulatory uncertainty abates.”

Banks can have their capital return capacities limited if their stress capital buffer is below certain benchmarks, but Wedbush analysts noted they don’t believe any of the regional banks they cover would see their dividends restricted “even if a severe recession played out.”

Several banks including Citizens Financial Group (CFG), First Horizon (FHN), First Citizens (FCNCA), and Regions Financial (RF) are expected to be “modestly active” with buybacks this year, according to Wedbush analysts. Some, however, may choose to keep buybacks on hold until economic uncertainty subsides. 

Bank of America analysts wrote Thursday that the results could free up about $3 billion for Citigroup (C) to put toward buybacks. The stress test results, they also said, “should pave the way for resumption in buybacks” for M&T Bank (MTB).

Wedbush analysts also said banks like Citizens, M&T, and Fifth Third Bank (FITB) could raise their dividends later this year.

Walgreens Stock Sinks To 27-Year Low on Earnings Miss

4 hr 47 min ago

Walgreens Boots Alliance (WBA) shares crashed to their lowest level since 1997 on Thursday as the big pharmacy chain and healthcare provider missed profit estimates, slashed guidance, and planned major location closings because of weak consumer demand.

Walgreens reported third-quarter adjusted earnings per share (EPS) of $0.63, short of forecasts. Revenue was up 2.6% year-over-year to $36.4 billion, better than expected.

The company said because of “challenging pharmacy industry trends and a worse-than-expected U.S. consumer environment,” it cut its full-year adjusted EPS to a range of $2.80 to $2.95, down from the previously anticipated $3.20 to $3.35.

Walgreens also updated its strategic review, noting it is “simplifying and focusing the U.S. Healthcare portfolio,” and plans to “close certain underperforming U.S. stores.”

Shares of Walgreens Boots Alliance were down nearly 25% Thursday morning and have lost more than half their value so far this year.

–Bill McColl

Levels to Watch Amid Micron’s Post-Earnings Slump

5 hr 39 min ago

Micron (MU) shares fell in early trading Thursday after the chipmaker posted quarterly results and revenue guidance that came in below Wall Street’s lofty expectations.

Micron shares have trended steadily higher throughout the first half of 2024. However, more recently, several technical indicators point to waning upward momentum.

Amid the stock’s post-earnings sell-off, shares may see buying interest near the key 50% Fibonacci retracement level at $131.63, an area on the chart that also sits near a price peak in May.

The 61.8% Fib level may attract buyers at $125.52, a region that roughly aligns with the rising 50-day MA to provide a confluence of support.

Meanwhile, a move lower to the 78.6% Fib level sitting near a series of price action between April and May could offer support at $116.81.

Finally, a significantly deeper correction below the Fibonacci grid could see the stock fill its second-quarter earnings gap at $96.25, which sits 32% below Wednesday’s closing price of $142.36.

Micron shares were down 6% at $133.89 Thursday morning.

–Timothy Smith

Stocks Making the Biggest Moves in Early Trading

6 hr 31 min ago

Gains:

• McCormick & Company (MKC): Shares of the spice maker rose 5% after reporting earnings that surpassed analyst estimates thanks to strong international sales growth.
• Suzano S.A. (SUZ): The Brazilian paper company jumped 11% after walking away from acquisition talks with International Paper (IP) that would have seen Suzano buy the Memphis-based paper products company for a reported $15 billion. International Paper stock tumbled 8%.
• Restoration Hardware (RH): Shares of the retailer advanced 8% after announcing that its CEO Gary Friedman bought $10 million in shares, raising his ownership stake of outstanding shares to 25%.

Losses:

• Walgreens Boots Alliance (WBA): Shares of the pharmacy retailer plummeted 24% after its latest earnings report disappointed, putting the stock on track to sink further after hitting its lowest point since 1997 earlier this year.
• Levi Strauss & Co. (LEVI): The apparel brand was down 16% after sales for the quarter came in below expectations, overshadowing a dividend hike.
• Micron Technology (MU): Shares of the chipmaker dropped 4% after reporting subpar profits for the third quarter after the bell Wednesday, along with revenue projections that may not have been as optimistic as investors were hoping for.

Stock Futures Dip as Micron, Banks Retreat

7 hr 23 min ago

Futures contracts connected to the Dow Jones Industrial Average traded 0.2% lower in premarket trading on Thursday.

S&P 500 futures were down 0.1%.

Nasdaq 100 futures were also off 0.1%.