Stocks waver after key data as Micron slides

Stay5 updates

• 

  Thu, June 27, 2024 at 8:08 AM MDT

  Pending dwelling gross sales fall in Might

  Excessive dwelling costs and elevated mortgages are maintaining potential consumers away from the housing market.

  Pending dwelling gross sales, a forward-looking indicator of dwelling gross sales based mostly on contract signings, fell 2.1% in Might from the month prior, in accordance with Nationwide Affiliation of Realtors knowledge. 12 months-over-year, they had been down 6.6%.

  The Midwest and South posted a drop in contract signings in Might from the month earlier than. The Northeast and West recorded features. All areas throughout the nation registered losses in exercise on an annual foundation.

  “The market is at an fascinating level with rising stock and decrease demand,” stated NAR chief economist Lawrence Yun. “Provide and demand actions recommend easing dwelling worth appreciation in upcoming months. Inevitably, extra stock in a job-creating financial system will result in larger dwelling shopping for, particularly when mortgage charges descend.”

  Mortgage charges are sitting at their lowest common in three months, however that is nonetheless not sufficient to lure consumers. About 95% of mortgage debtors have rates of interest beneath present market charges, and nearly 80% have charges greater than 2 share factors beneath market charges, per Goldman Sachs knowledge.

  Trying forward, Yun expects “reasonably decrease mortgage charges, increased dwelling gross sales and stabilizing dwelling costs.”

• 

  Thu, June 27, 2024 at 8:05 AM MDT

  Walgreens tanks 24% on decrease steerage attributable to “difficult” pharmacy developments, weak shopper

  Walgreens inventory plunged 24% to the touch its lowest stage since 1997 after the pharmacy chain lowered its fiscal 2024 earnings steerage given “difficult pharmacy business developments and a worse-than-expected U.S. shopper atmosphere”

  “Our prospects have turn into more and more selective and price-sensitive of their purchases,” stated Walgreens Boots Alliance CEO Tim Wentworth throughout the firm’s earnings name on Thursday morning.

  Administration indicated 25% of the corporate’s shops usually are not presently contributing to the long-term technique and “adjustments are imminent.”

  Walgreens plans to shut “a good portion” of its underperforming shops over the subsequent three years.

  The corporate expects adjusted earnings per share for the 12 months to return in between $2.80 and $2.95, down from its prior forecast of $3.20 to $3.35.

• 

  Thu, June 27, 2024 at 7:48 AM MDT

  Netflix, Meta assist elevate Nasdaq into inexperienced territory

  Communication shares lifted the Nasdaq Composite (^IXIC) into constructive territory to rise 0.3% shortly after the market open on Thursday.

  Netflix (NFLX) and Meta (META) each rose greater than 1%, serving to elevate the tech heavy sector which had beforehand dipped just under the flatline.

  The S&P 500 (^GSPC) additionally rose 0.2% whereas the Dow Jones Industrial Common (^DJI) was little modified.

  In the meantime chip large Nvidia (NVDA) was fractionally down after Micron’s (MU) gross sales forecast didn’t enthuse traders on the AI craze that has fueled the broader market rally this 12 months.

• 

  Thu, June 27, 2024 at 7:35 AM MDT

  Shares waver at open as traders weigh financial knowledge, Micron places lid on tech rally

  Shares opened barely decrease on Thursday morning as traders assessed financial knowledge launched on Thursday morning.

  The S&P 500 (^GSPC) was little modified whereas the Dow Jones Industrial Common (^DJI) slipped 0.1%. The tech-heavy Nasdaq Composite (^IXIC) fell just under the flatline.

  Actual gross home product (GDP) elevated at an annual price of 1.4% within the first quarter of 2024, in accordance with the third estimate by the Bureau of Financial Growth launched on Thursday morning. The print was barely increased than the prior studying of 1.3%, however nonetheless confirmed the slowest progress since 2022.

  A studying on preliminary weekly jobless claims got here in at 233,000, a lower of 6,000 from the earlier week, in accordance with Division of Labor knowledge.

  On the company entrance, Chipmaker Micron’s (MU) gross sales forecast for the present quarter met expectations however didn’t fulfill traders on the lookout for stellar outperformance from AI-linked firms. The inventory fell about 4% in early buying and selling. AI chip large Nvidia (NVDA) additionally fell nearly 1% on the open.

• 

  Thu, June 27, 2024 at 3:24 AM MDT

  Why the Levi’s quarter bothers me

  Levi’s (LEVI) shares are getting slammed by 15% within the pre-market following earnings.

  And I feel it is deserved for 2 causes.

  First, China gross sales tanked 10% from the prior 12 months. I’ve been chatting to a great variety of people of late who’ve just lately visited China. One theme is that Chinese language customers are feeling on the gloomy aspect and never spending like in years previous. That temper is impacting demand for Levi’s denims, Starbucks (SBUX) espresso and — in accordance with Basic Mills’ (GIS) earnings name yesterday — Haagen Dazs ice cream.

  It is arduous to see the inflection level in China.

  Identical goes for the Levi’s wholesale enterprise, or the enterprise that sells into shops. Gross sales fell 4% from the prior 12 months. The corporate’s commentary suggests wholesale demand might not inflect till 2025.

  I plan to place a few of my considerations to Levi’s CFO Harmit Singh as we speak at 10:30 a.m. ET on Yahoo Finance. Tune in!