The stock market is trading higher midday Thursday. The S&P 500 gained 0.25%, and the tech-heavy Nasdaq Composite added 0.28%. The Dow Jones Industrial Average climbed 0.58%, and the Russell 2000 Index rose 0.57%.
Initial jobless claims for the week ended Sept. 21 came in at 218,000, down 4,000 from the previous week and slightly better than the economists’ estimate of 223,000. TheStreet’s Martin Baccardax explains that “the market’s key concern, a cooling labor market, continues to show late-quarter resilience,” measured by fewer jobless claims.
Micron posted a strong outlook for the current quarter, now expecting earnings of $1.74 a share on revenue of $8.7 billion.
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S&P 500 big stock movers today
Five S&P 500 stocks making big midday moves are:
Micron Technology (MU) +13.3% Jabil (JBL) +10.7% Estee Lauder (EL) +10.5% Albemarle (ALB) +8.1% Wynn Resorts (WYNN) +7.7%
The worst-performing five S&P 500 stocks with the largest midday drop are:
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%
Stocks also worth noting include:
Nvidia (NVDA) -0.7%Tesla (TSLA) -1.4%Apple (AAPL) +0.4%Boeing (BA) +2.2%Starbucks (SBUX) +2%
Micron surges after earnings beat
Micron Technology jumped 14% after the chipmaker posted strong earnings and guidance.
For its fiscal fourth quarter ended Aug. 29 the company earned $1.18 a share, topping the $1.11 expected by analysts. Revenue of $7.75 billion represented growth of 93% from a year earlier, surpassing the $7.65 billion consensus forecast.
Related: Analysts race to overhaul Micron stock price targets after earnings
Micron’s annual revenue was $25.11 billion, up from $15.54 billion the previous year. The company reported earnings of $1.30 a share, a turnaround from the year-earlier loss of $4.45 a share.
The company also posted a strong outlook for the current quarter, now expecting earnings of $1.74 a share on revenue of $8.7 billion.
“Micron delivered 93% year-over-year revenue growth in fiscal Q4, as robust AI demand drove a strong ramp of our data center DRAM products and our industry-leading high bandwidth memory,” said Micron’s chief executive, Sanjay Mehrotra.
“We are entering fiscal 2025 with the best competitive positioning in Micron’s history. We forecast record revenue in fiscal Q1 and a substantial revenue record with significantly improved profitability in fiscal 2025,” Mehrotra said.
Super Micro Computer drops on Justice Department probe
Super Micro Computer stock fell more than 10% following a report that the Justice Department has opened an investigation into the company.
The probe, which is in its early stages, comes after Hindenburg Research’s August disclosure of a short position in the company, alleging accounting manipulation, according to The Wall Street Journal. Short-sellers bet that a company’s stock price will drop.
Related: Analysts revisit Dell, Super Micro stock price targets on AI capabilities
Super Micro provides computers for servers, data storage, and AI applications. Its clients include Nvidia, AMD and Intel. The company in August delayed filing its annual report with the Securities and Exchange Commission last month, causing a nearly 20% drop in its stock.
Starbucks trades higher after analyst upgrade
Starbucks rallied 2% following an upgrade from Bernstein.
Bernstein’s analyst upgraded the coffee-bar chain to outperform from market perform with a price target of $115, up from $92, according to thefly.com.
More Retail Stocks:
Target makes bold clarification to return policy amid alarming trendAnalyst revisits Costco stock price target, rating ahead of earningsNike shares swoosh higher after new CEO is named
“The market has positively reacted to the appointment of Brian Niccol as the new CEO, but the stock’s current valuation does not fully appreciate the earnings power that Starbucks could unlock,” the analyst tells investors in a research note.
The analyst says the stock could improve before the turnaround is fully done. Bernstein expects better operations to boost sales growth and bring operating margins back to a pre-Covid level of 18.5%.
Related: Veteran fund manager sees world of pain coming for stocks
