September Nasdaq 100 E-Mini futures (NQU24) are trending down -0.23% this morning as an underwhelming sales forecast from chipmaker Micron weighed on sentiment, while investors awaited a flurry of U.S. economic data, a presidential debate, and an earnings report from the world’s largest shoemaker Nike.
Micron Technology (MU) slumped over -6% in pre-market trading after the memory chipmaker provided Q4 sales guidance that trailed the estimates of some investors, overshadowing its stronger-than-expected Q3 results.
In yesterday’s trading session, Wall Street’s main stock indexes closed in the green. FedEx (FDX) surged over +15% and was the top percentage gainer on the S&P 500 after the shipping giant posted upbeat Q4 results, provided a strong 2025 adjusted EPS forecast, and said it would buy back $2.5 billion of its stock over the next year. Also, Apple (AAPL) gained +2% after Rosenblatt Securities upgraded the stock to Buy from Neutral with a price target of $260. In addition, Whirlpool (WHR) climbed over +17% following a report from Reuters that Robert Bosch GmbH is contemplating an offer for the appliance maker. On the bearish side, Moderna (MRNA) plunged about -11% and was the top percentage loser on the S&P 500 and Nasdaq 100 following new data indicating that the efficacy of its RSV vaccine declined significantly in the second year and was inferior to that of rival vaccines.
Economic data on Wednesday showed that U.S. new home sales fell -11.3% m/m to a 6-month low of 619K in May, weaker than expectations of 636K. Also, U.S. May Building Permits were revised higher to 1.399M from a preliminary estimate of 1.386M, yet still marked the lowest level since June 2020.
The Federal Reserve said on Wednesday that the largest U.S. banks passed the annual stress test, clearing the path for higher shareholder payouts. The results indicated that while large banks would face greater losses compared to the 2023 test, they remain well-positioned to weather a severe recession, according to the central bank. “While the severity of this year’s stress test is similar to last year’s, the test resulted in higher losses because bank balance sheets are somewhat riskier and expenses are higher,” said Fed Vice Chair of Supervision Michael S. Barr.
Fed Governor Michelle Bowman on Wednesday reiterated her baseline view that “inflation will decline further with the policy rate held steady,” and she also stated that rate cuts would be “eventually” appropriate if inflation moves sustainably toward 2%.
U.S. rate futures have priced in a 10.3% chance of a 25 basis point rate cut at the July FOMC meeting and a 56.3% probability of a 25 basis point rate cut at September’s policy meeting.
Meanwhile, market participants will be keeping an eye on the first U.S. presidential debate of the 2024 election later today, featuring Democratic President Joe Biden and his Republican challenger Donald Trump.
On the earnings front, notable companies like Nike (NKE), McCormick (MKC), Walgreens Boots Alliance (WBA), and Acuity Brands (AYI) are slated to release their quarterly results today.
On the economic data front, all eyes are on the Commerce Department’s final estimate of gross domestic product, set to be released in a couple of hours. Economists, on average, forecast that U.S. GDP will stand at +1.3% q/q in the first quarter, compared to +3.4% q/q in the fourth quarter.
Also, investors will focus on U.S. Durable Goods Orders data, which came in at +0.7% m/m in April. Economists foresee the May figure to be -0.5% m/m.
U.S. Core Durable Goods Orders data will be reported today. Economists estimate this figure to come in at +0.2% m/m in May, compared to the previous number of +0.4% m/m.
U.S. Pending Home Sales data will come in today. Economists expect May’s figure to be +0.6% m/m, compared to the previous figure of -7.7% m/m.
U.S. Initial Jobless Claims data will be reported today as well. Economists estimate this figure to be 236K, compared to last week’s number of 238K.
In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.335%, up +0.44%.
The Euro Stoxx 50 futures are up +0.08% this morning, with investors looking ahead to crucial U.S. inflation data scheduled for Friday as well as French elections this weekend. Media stocks gained ground on Thursday, while retail stocks underperformed. European Commission data released Thursday showed that the Eurozone’s economic sentiment indicator fell in June. Meanwhile, investors are anticipating the release of the Fed’s first-line inflation gauge and consumer price data from France, Spain, and Italy on Friday, along with the first round of French parliamentary elections on Sunday. In corporate news, H & M Hennes & Mauritz Ab (HMB.S.DX) plunged over -12% after reporting a smaller-than-anticipated rise in Q2 operating profit and forecasting a decline in June sales. Also, H&M CEO Daniel Ervér expressed uncertainty regarding the company’s ability to meet its margin target for this year.
Eurozone’s Business and Consumer Survey and Eurozone’s Consumer Confidence data were released today.
Eurozone June Business and Consumer Survey came in at 95.9, weaker than expectations of 96.2.
Eurozone June Consumer Confidence arrived at -14.0, in line with expectations.
Asian stock markets today settled in the red. China’s Shanghai Composite Index (SHCOMP) closed down -0.90% and Japan’s Nikkei 225 Stock Index (NIK) closed down -0.82%.
China’s Shanghai Composite Index closed lower today following data indicating a slowdown in industrial profits for the nation’s companies. Retail and automobile stocks underperformed on Thursday. Data from the National Bureau of Statistics showed on Thursday that profits at China’s industrial firms increased by 0.7% in May from a year earlier, down from 4.0% growth in April, further raising concerns about corporate performance in the world’s second-largest economy. China’s 10-year bond yield fell to a 22-year low on Thursday as investors reduced risk in their portfolios and turned to safe-haven assets. Meanwhile, Beijing, China’s capital, joined other major Chinese cities on Wednesday in easing home-buying restrictions to support the property market, implementing measures such as reducing the down payment ratio and mortgage rates. In other news, China’s Ministry of Commerce announced on Thursday that it would launch an expiry review of anti-dumping measures on imports of European Union toluidine, which is utilized in dye, pharmaceuticals, and pesticides. In corporate news, Ningbo Huaxiang Electronic fell over -3% after announcing its intention to acquire six Chinese subsidiaries of International Automotive Components Group for approximately 600 million yuan. Investor attention is currently focused on the release of key Chinese Purchasing Managers’ Index data for June, scheduled for Saturday.
Japan’s Nikkei 225 Stock Index closed lower today amid persistent concerns over the Bank of Japan’s potential rate increases. Brokerage and pharmaceutical stocks led the declines on Thursday. Data released by the Ministry of Economy, Trade, and Industry on Thursday indicated that Japan’s retail sales rose 3.0% in May compared to a year earlier. Meanwhile, Japanese government bond yields climbed on Thursday as the yen’s drop to its lowest level in 38 years against the dollar spurred expectations of a possible interest rate hike by the BOJ next month. The yen rebounded by as much as 0.3% following a 0.7% decline on Wednesday, during which it reached 160.87 per dollar, surpassing the level that prompted intervention in April. Japanese Finance Minister Shunichi Suzuki issued fresh warnings on Thursday, stating that authorities are ready to take decisive actions regarding currencies. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed down -3.00% to 16.18.
The Japanese May Retail Sales stood at +3.0% y/y, stronger than expectations of +2.0% y/y.
Pre-Market U.S. Stock Movers
Micron Technology (MU) slumped over -6% in pre-market trading after the memory chipmaker provided Q4 sales guidance that trailed the estimates of some investors, overshadowing its stronger-than-expected Q3 results.
Levi Strauss (LEVI) plunged more than -14% in pre-market trading after the company reported weaker-than-expected Q2 revenue and reaffirmed its full-year adjusted EPS guidance that came in below expectations.
CASI Pharmaceuticals (CASI) surged about +41% in pre-market trading following the announcement of a preliminary proposal from CEO Wei-Wu-He to acquire the company’s entire business operations in China.
U.S. Bancorp (USB) fell nearly -2% in pre-market trading after JPMorgan downgraded the stock to Neutral from Overweight.
International Paper (IP) tumbled more than -14% in pre-market trading after Brazilian company Suzano announced it had terminated talks to buy the company.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Thursday - June 27th
Nike (NKE), McCormick&Co (MKC), Walgreens Boots Alliance (WBA), Acuity Brands (AYI), Simply Good Foods (SMPL), Apogee (APOG), Lindsay (LNN), Accolade (ACCD), Dynagas LNG (DLNG), Pinstripes Holdings (PNST), American Outdoor Brands (AOUT), Culp (CULP), Jerash (JRSH).
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On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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