The major averages moved up on Thursday even after Micron Technology’s guidance failed to impress investors, and markets received a slew of economic data.
The S&P 500 (SP500) was +0.1%, the Nasdaq Composite (COMP.IND) was +0.3% and the Dow (DJI) was +0.1%.
The 10-year Treasury yield (US10Y) dipped 4 basis points to 4.28%. The 2-year yield (US2Y) slid 4 basis points to 4.70%. See how Treasury yields have done across the curve at the Seeking Alpha bond page
The major market averages advanced a bit after seesawing through most of Wednesday, as stocks struggled for momentum.
“Markets have struggled over the last 24 hours, with sovereign bonds selling off and equities losing ground for the most part,” Deutsche Bank’s Henry Allen said.
“To be fair, it wasn’t all bad news, and a renewed tech advance did see the Magnificent 7 reach a new all-time high,” Allen added.
Micron Technology (MU) was down 5.5% after the memory chipmaker issued guidance that was in-line with estimates, overshadowing a stronger-than-expected third-quarter.
Markets are also bracing for the personal-consumption expenditures data due on Friday. Core PCE is the Federal Reserve’s preferred inflation gauge.
On the economic front, U.S. gross domestic product in the U.S. Department of Commerce’s final Q1 estimate rose at an annual rate of 1.4%, slightly higher than the second estimate of 1.3%, but lower than Q4 2023’s strong print of 3.4%.
Jobless claims declined for the second month as claims fell -6K to 233K. At the same time, retail inventories moved up 0.7% in May, and the U.S. international trade deficit widened more than expected in May.
Durable goods orders also edged up in May. Durable goods orders rose 0.1% M/M in May, which was better than what was expected by forecasters.
The Fed balance sheet will also be released later in the day.
Political action will also keep investors busy today, with the first presidential debate between President Joe Biden and former President Donald Trump on the way.
“Investors tend to regard Biden’s policies as representing some continuity, and to dismiss Trump’s policies as campaign rhetoric that would not actually be implemented,” Donovan added.