The stock market experienced an uptrend by midday Thursday, with the S&P 500 increasing by 0.25%, the Nasdaq Composite rising by 0.28%, the Dow Jones Industrial Average climbing 0.58%, and the Russell 2000 Index going up by 0.57%.
Initial jobless claims for the week ending September 21 were reported at 218,000, a decrease of 4,000 from the previous week, slightly surpassing economists’ forecast of 223,000. Martin Baccardax from TheStreet highlighted that the labor market’s resilience is evident from the lower number of jobless claims, which remains a key concern for the market.
Micron Technology presented a strong forecast for the current quarter, expecting earnings of $1.74 per share on revenue of $8.7 billion. Among the S&P 500 companies, significant midday movers included:
- Micron Technology (MU): +13.3%
- Jabil (JBL): +10.7%
- Estee Lauder (EL): +10.5%
- Albemarle (ALB): +8.1%
- Wynn Resorts (WYNN): +7.7%
On the other hand, the S&P 500’s biggest midday decliners were:
- Super Micro Computer (SMCI): -16.1%
- Diamondback Energy (FANG): -6.2%
- Oneok (OKE): -5.8%
- Targa Resources (TRGP): -5.4%
- APA (US) (APA): -5.1%
Other noteworthy stocks included:
- Nvidia (NVDA): -0.7%
- Tesla (TSLA): -1.4%
- Apple (AAPL): +0.4%
- Boeing (BA): +2.2%
- Starbucks (SBUX): +2%
Micron Technology surged 14% following impressive earnings and guidance. For the fiscal fourth quarter ending August 29, the company reported earnings of $1.18 per share, surpassing analyst expectations of $1.11. Revenue reached $7.75 billion, a 93% increase compared to the previous year, exceeding the consensus forecast of $7.65 billion. Annual revenue was $25.11 billion, up from $15.54 billion the previous year. The company posted earnings of $1.30 per share, a significant turnaround from a prior-year loss of $4.45 per share. The outlook for the current quarter includes expected earnings of $1.74 per share on $8.7 billion in revenue.
Micron’s CEO, Sanjay Mehrotra, cited robust AI demand as a key driver of revenue growth and expressed optimism for fiscal 2025, anticipating record revenue and significantly improved profitability.
Super Micro Computer’s stock declined over 10% following news of a Justice Department investigation into the company. The probe, prompted by allegations of accounting manipulation by Hindenburg Research, is in its early stages. The company provides computers for servers, data storage, and AI applications, with clients including Nvidia, AMD, and Intel. Super Micro delayed filing its annual report with the SEC in August, causing a nearly 20% stock drop.
Starbucks saw a 2% rise after an analyst upgrade from Bernstein. The upgrade moved the coffee-bar chain to outperform from market perform, setting a price target of $115, up from $92. According to the analyst, the market has responded positively to the appointment of Brian Niccol as CEO, although the stock’s current valuation may not fully reflect the potential earnings power. Improved operations are expected to enhance sales growth and restore operating margins to pre-COVID levels of 18.5%.
