Wall Street in pause mode, awaiting key data and ahead of the presidential debate

Wall Street in pause mode, awaiting key data and ahead of the presidential debate
Wall Street in pause mode, awaiting key data and ahead of the presidential debate

New York Stock Exchange benchmarks traded slightly higher on Thursday as investors digested mixed economic data and disappointing guidance from chipmaker Micron ahead of the first presidential debate.

In this context, The Dow Jones Industrial Average closed at 39,164.06 points, gaining 0.09%, the S&P500 stood at 5,482.87 points, rising 0.09%, and the Nasdaq Composite appreciated 0.30%, reaching 17,858. .68 points.

It was a surprise, and not one of the most expected, that affected investors on the day when the results of Micron Technologya company often seen as a benchmark in the sector, due to its exposure to various types of chips and customers.

Quarterly earnings beat market expectations on strong demand for AI, but online revenue guidance disappointed traders who had expected more, especially considering it has doubled in value over the past year. Its shares fell more than 6%.

Levi Strauss and Walgreens collapse

The actions of Levi Strauss plummeted 16% after the jeans maker reported a drop in fiscal second-quarter revenue, hurt by slow demand for Docker’s, its Chinese-sourced khaki brand.

On the other hand, the actions of Walgreens Boots Alliance fell 22% after the drugstore chain lowered its fiscal 2024 guidance due to a worse-than-expected retail environment and announced it would close more stores as part of a strategic review.

The actions of McCormick shares rose 4.3% after the spice maker beat market expectations for second-quarter profits and sales, driven by strong demand for its products in Europe, the Middle East and Africa.

Shares in International Paper fell 7% as it was reported “that Suzano is no longer pursuing an exit from the paper and packaging group and the Brazilian pulp giant is said to have reached its peak price.”

Among other corporate news that will influence the performance of the stock market, it was reported that Nike would publish its latest quarterly results after the close of trading.

Beyond observing and being part of the behavior of a volatile market, investors seem to be in a kind of waiting state, before the key US inflation data that will be announced this Friday and the next presidential debate.

Unemployment benefit applications down

New orders for key U.S.-made capital goods unexpectedly fell in May, suggesting business spending on equipment weakened in the second quarter as borrowing costs remain elevated.

However, US jobless claims fell for the first time last week, potentially allaying fears of a significant deterioration in the labor market.

The markets were operating in anticipation of the first presidential debate of the year scheduled for Thursday night, between the candidates Joe Biden (democrat) and Donald Trump (republican).

Crude oil recovers after the increase in inventories in the US

Crude oil prices rebounded on Thursday, recovering from early losses following a surprise increase in US stockpiles.

The U.S. Energy Information Administration last week reported a 3.6 million barrel increase in U.S. crude oil stocks, according to data released late Wednesday, disappointing the market that had expected a 2.6 million barrel drop.

More alarming was a 2.7 million barrel increase in gasoline inventories, indicating that fuel consumption remained weak even with the start of the summer travel season.

Source: Ambito

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