Investing.com — The S&P 500 edged higher on Thursday as investors focused on a drop in chipmaker Micron and a rise in consumer stocks just one day after a key inflation reading was released.
At 16:00 ET (20:00 GMT) it was up 36 points, or 0.1%, and up 0.1% to trade up 0.30%.
Micron falls on weak earnings outlook, other chipmakers follow suit
Micron Technology (NASDAQ:) reported better-than-expected quarterly results, but the company’s revenue guidance faltered, disappointing investors who had hoped for a stronger performance, especially since Micron’s market cap has more than doubled over the past year. The company’s shares fell more than 7%.
Other semiconductor manufacturing stocks also fell, including market darlings Nvidia (NASDAQ:) and Broadcom (NASDAQ:).
Casino stocks boost consumer sector
Casino stocks such as MGM Resorts International (NYSE:) and Caesars Entertainment Corp. (NASDAQ:) soared and consumer stocks helped support the broader market after the Nevada Gaming Control Board reported that gaming revenue rose 2.5% to $1.32 billion for the 12 months ending in May and Las Vegas Strip casinos reported a 3.7% increase in gaming revenue in May.
Focus on economic data and presidential debate
Still, losses are small as investors appear to be in a state of wait-and-see mode ahead of key U.S. inflation data and the presidential debate.
U.S. manufacturing purchasing power parity for major capital goods unexpectedly fell in May, suggesting that business capital investment weakened in the second quarter as borrowing costs remained high.
However, initial U.S. jobless claims trended downward last week, which could ease concerns about a significant deterioration in the labor market.
But it will be Friday’s that will attract the most attention, as it is widely seen as the Fed’s preferred inflation gauge.
Markets were also on edge ahead of the first presidential debate of the year between Democratic and Republican candidates Joe Biden and Donald Trump, scheduled for later on Thursday.
Levi Strauss and Walgreens Boots are struggling. Nike Aiming for profit
Shares of pharmacy chain Walgreens Boots Alliance (NASDAQ:) fell 22% after the company lowered its fiscal 2024 earnings outlook, citing a weaker-than-expected retail environment, and said it would close more stores as part of a strategic overhaul.
Shares of jeans maker Levi Strauss & Co. (NYSE:) fell 15% after the company reported second-quarter earnings that fell short of expectations, hurt by weak demand for its khaki and chino brand, Dockers.
Spice maker McCormick (NYSE:) shares rose 4% after the company reported second-quarter profit and sales that beat market expectations on strong demand for spices and seasonings in Europe, the Middle East and Africa.
Shares in Brazilian pulp giant International Paper (NYSE:) fell 7% after Bloomberg reported that Suzano was no longer pursuing a takeover of the paper and packaging group, where the stock is said to have hit an all-time high.
Nike (NYSE:) is scheduled to report its latest earnings after the close of trading.
(Peter Nurse and Amber Warrick contributed to this article.)
