Stock Market Today: Stocks End Higher Ahead of May PCE Data
Micron Technology, Walgreens Boots Alliance and Levi's were three of Thursday's biggest movers.
![closeup of blue stock chart with red and green volume bars and a green moving average](https://cdn.mos.cms.futurecdn.net/hbRMDVRhfJobMQLXddLEdj-415-80.jpg)
Stocks were choppy Thursday as investors sifted through a heavy batch of headlines that included an upwardly revised reading on first-quarter gross domestic product (GDP) and several disappointing corporate earnings reports. But top of mind remained Friday morning's release of a key inflation update.
There were a number of economic reports released today. In addition to the final reading on Q1 GDP, which was revised to show the economy grew at a 1.4% annual rate vs the previous 1.3% estimate, durable goods orders increased 0.1% from April to May. This was slower than the 0.2% rise seen the month prior.
However, the main economic event of the week comes tomorrow morning with the release of the May Personal Consumption and Expenditures (PCE) Price Index.
![https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-200-80.png](https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-320-80.png)
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The PCE "is the Fed's preferred measure of inflation and will be key to providing insight on interest-rate cuts," says Gianmaria Feleppa, market expert and CEO of UCapital Fintech Group. "If the numbers come in higher, then the Fed will continue to leave rates high, stocks will fall and bond yields will rise. If the report shows pricing pressure easing, then the opposite will occur."
According to CME Group's FedWatch Tool, futures traders are currently pricing in a 58% chance the Fed will issue its first quarter-point rate cut at its September meeting, up from 45% one month ago thanks to a recent batch of encouraging inflation reports.
Micron drops on soft revenue outlook
Looking at the earnings calendar, Micron Technology (MU, -7.1%) made waves after the memory chipmaker's soft revenue outlook offset fiscal third-quarter top- and bottom-line beats.
UBS Global Research analyst Timothy Arcuri calls the reaction to MU's revenue forecast "noise" and that calendar year 2025 "is what matters most for the stock." Arcuri reiterated a Buy rating on one of Wall Street's best semiconductor stocks and says Micron remains a top artificial intelligence play.
Walgreens hits a 27-year low after earnings
Walgreens Boots Alliance (WBA) was another noteworthy post-earnings decliner, sinking 22.2% to a 27-year low after its fiscal third-quarter results. While the embattled pharmacy retail chain said revenue ticked higher to a better-than-expected $36.4 billion, earnings plunged 37% year-over-year to 63 cents per share – or well below the 68 cents per share analysts anticipated.
WBA also slashed its full-year earnings guidance citing "challenging pharmacy industry trends and a worse-than-expected U.S. consumer environment."
Jeff Jonas, portfolio manager at Gabelli Funds, thinks today's share price move is deserved. "The results were definitely worse than expected in the U.S. pharmacy segment, hurt by a weak consumer and continued reimbursement pressure," Jonas says. "I would sell the shares, I just don't see things getting better anytime soon."
Levi's sinks despite dividend hike
Not to be left out, Levi Strauss (LEVI) tumbled 15.3% after the denim maker fell just shy of revenue estimates amid what Chief Financial Officer Harmit Singh attributed to a "cautious" consumer environment.
Still, Levi beat on the bottom line and its board of directors approved an 8% dividend hike.
Stifel analyst Jim Duffy maintained a Buy rating on LEVI after earnings and said he sees today's pullback as a buying opportunity. "Ultimately, consumer appetite for the brand is the foundation for future potential," Duffy wrote in a note to clients.
As for the main indexes, the Dow Jones Industrial Average added 0.09% to 39,164, the S&P 500 gained 0.09% to 5,482, and the Nasdaq Composite rose 0.3% to 17,858.
Related content
To continue reading this article
please register for free
This is different from signing in to your print subscription
Why am I seeing this? Find out more here
With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at Schaeffer's Investment Research. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.
-
Best Amazon Prime Day Early Deals
Check out these early deals on everything from tech and clothing to household items and kitchen gadgets now before Amazon Prime Day 2024 drops
By Kathryn Pomroy Published
-
Southwest Business Card Launches $1,800 Bonus Offer
This is the best Southwest business card offer we've seen yet. New cardholders earn 120,000 bonus Rapid Rewards points, worth about $1,800.
By Ellen Kennedy Published
-
Stock Market Today: Stocks Give Up Gains Even as Inflation Ebbs
The main indexes closed lower Friday but ended the first half with impressive gains.
By Karee Venema Published
-
Nokia to Acquire Infinera in $2.3 Billion Deal: What to Know
Nokia will acquire Infinera as it looks to expand its optical-networking presence. Here's what you need to know.
By Joey Solitro Published
-
Trump Media & Technology Stock Stays Volatile After Debate
Trump Media & Technology stock has traded erratically in recent months and last night's presidential debate sparked more volatility in DJT shares.
By Joey Solitro Published
-
Nike Stock Sinks on Dismal Sales Forecast: What to Know
Nike stock is spiraling Friday after the athletic and apparel retailer missed sales estimates for its most recent quarter and lowered its outlook for its new fiscal year.
By Joey Solitro Published
-
How to Find the Best Small-Cap Stocks to Buy
Wall Street's best small-cap stocks to buy include biotech, real estate and industrials names.
By Dan Burrows Published
-
Levi Strauss Stock Spirals on Revenue Miss: What to Know
Levi Strauss stock is lower Thursday after the denim company's top line missed estimates amid a "cautious" consumer environment.
By Joey Solitro Published
-
Walgreens Stock Hits 27-Year Low After Massive Earnings Miss
Walgreens Boots Alliance stock is tanking Thursday the pharmacy retailer came up short of earnings expectations and slashed its full-year outlook. Here's what you need to know.
By Joey Solitro Published
-
Micron Stock Falls on Disappointing Outlook: What to Know
Micron stock is lower Thursday as the memory chipmaker's soft current-quarter revenue outlook offsets a fiscal Q3 beat. Here's what you need to know.
By Joey Solitro Published