Stocks fluctuate after key data with Micron falling

He lives5 updates

• Thursday, June 27, 2024 at 10:08 AM EST

  Pending home sales decline in May

  Rising home prices and higher mortgages keep potential buyers away from the housing market.

  Pending home sales — a forward-looking indicator of home sales based on contracts being signed — fell 2.1% in May from the previous month, according to data from the National Association of Realtors. Data released on Thursday showed that it fell year-on-year by 6.6%.

  The Midwest and South recorded a decline in contract signings in May compared to the previous month. The northeast and west recorded gains. All regions across the country recorded losses in activity on an annual basis.

  “The market is in an interesting phase with rising inventory and falling demand,” Lawrence Yun, chief economist at NAR, said in a statement. “Supply and demand movements point to a decline in home price appreciation in the coming months. More inventory in the economy that creates jobs is bound to lead to increased home buying, especially when mortgage rates decline.

  Mortgage rates are at their lowest average in three months, but that is still not enough to attract buyers. About 95% of mortgage borrowers have interest rates below current market rates, and about 80% have interest rates that are less than 2 percentage points below market rates, according to Goldman Sachs data.

  Looking ahead, Yoon expects “moderately lower mortgage rates, higher home sales, and stable home prices.”

• 

  Thursday, June 27, 2024 at 10:05 AM EST

  Walgreens declines 24% with lower guidance due to ‘challenging’ pharmacy trends and consumer weakness

  Walgreens stock fell 24% to touch its lowest level since 1997 after the drugstore chain cut its fiscal 2024 earnings guidance, citing “challenging pharmacy industry trends and a worse-than-expected U.S. consumer environment.”

  “Our customers have become increasingly selective and price-sensitive in their purchases,” Tim Wentworth, CEO of Walgreens Boots Alliance, said during the company’s earnings call Thursday morning.

  Management indicated that 25% of the company’s stores are not currently contributing to the long-term strategy and that “changes are imminent.”

  Walgreens said it plans to close a “significant portion” of its underperforming stores over the next three years.

  It expects adjusted earnings per share for the year to be between $2.80 and $2.95, down from its previous forecast of $3.20 to $3.35.

• 

  Thursday, June 27, 2024 at 9:48 AM EST

  Netflix and Meta are helping push the Nasdaq into the green

  Telecom stocks boosted the Nasdaq Composite (^IXIC) into positive territory with a 0.3% gain shortly after the market opened on Thursday.

  Netflix (NFLX) and Meta (META) both advanced more than 1%, helping lift a tech-heavy gauge that had dipped just below the flat line.

  The S&P 500 (^GSPC) rose 0.2% while the Dow Jones Industrial Average (^DJI) was little changed.

  Meanwhile, shares of chip giant Nvidia ( NVDA ) fell slightly after Micron ( MU ) sales forecasts failed to galvanize investors over the AI ​​craze that has fueled the broader market’s rally this year.

• 

  Thursday, June 27, 2024 at 9:35 AM EST

  Stocks were volatile at the open as investors assessed economic data, and Micron capped the rise in technology stocks

  Stocks opened slightly lower on Thursday as investors weighed economic data released before the bell.

  The S&P 500 (^GSPC) was little changed, while the Dow Jones Industrial Average (^DJI) fell 0.1%. The Nasdaq Composite (^IXIC) fell just below the flat line.

  Real GDP growth at an annual rate of 1.4% in the first quarter of 2024 Third estimate It was issued by the Office of Economic Development Thursday morning. The reading was slightly higher than the previous reading of 1.3% but still showed the slowest growth since 2022.

  The initial weekly unemployment claims reading came in at 233,000, a decrease of 6,000 from the previous week. according to Ministry of Labor data.

  On the corporate front, chipmaker Micron’s (MU) sales forecast for the current quarter met expectations but failed to satisfy investors looking for stellar outperformance from AI-related companies. The stock fell about 4% in early trading. AI chip giant Nvidia (NVDA) was also down nearly 1% at the open.

• 

  Thursday, June 27, 2024 at 5:24 AM EST

  Why does Levi’s neighborhood bother me?

  Levi’s (LEVI) shares fell 15% in the premarket after earnings.

  I think it’s worth it for two reasons.

  First, sales in China fell by 10% from the previous year. I recently spoke with a large number of people who recently visited China. One theme is that Chinese consumers are feeling the gloomy side and are not spending as much as in years past. This mood is impacting demand for Levi’s jeans, Starbucks (SBUX) coffee, and — according to General Mills’ (GIS) earnings call yesterday — Häagen-Dazs ice cream.

  It is difficult to see the turning point in China.

  The same goes for Levi’s wholesale business, or the business that sells in department stores. Sales decreased 4% from the previous year. The company’s commentary indicates that wholesale demand may not pick up until 2025.

  I plan to raise some of my concerns with Levi CFO Harmit Singh today at 10:30 AM ET on Yahoo Finance. Discipline!