S&P 500 and Nasdaq Struggled to Advance After Mixed Quarterly Earnings and Economic Updates

Barry Adams
27 Jun, 2024
New York City

Market indexes on Wall Street in early trading struggled to find direction after mixed quarterly results and economic updates. 

The S&P 500 index and the Nasdaq Composite flatlined after Micron Technology reported better-than-expected quarterly results, but the current quarter outlook fell short of the market's expectations. 

Levi Strauss reported weaker-than-expected quarterly results, despite the strong worldwide demand for denim apparel. 

On the economic front, initial weekly jobless claims at the end of the previous week fell by 6,000 to 239,000. The weekly claims declined for the second consecutive week after reaching a 10-month high of 243,000. 

Meanwhile, continuing claims rose to 1,84 million, the highest level since the end of 2001. 

U.S. GDP growth was revised higher to 1.4% in the first quarter, faster than the 1.3% annual pace estimated in the second estimate, the U.S. Bureau of Economic Analysis reported Thursday. 

The economic growth in the first quarter was the slowest since the economic contraction in the first half of 2022. 

The personal consumption expenditure price index, an alternative measure of inflation preferred by policymakers, increased 3.4% for all items and rose 3.7% for core items. 

Both measures were revised higher by 0.1 percentage points from the second estimate. 

New orders for durable goods unexpectedly rose 0.1% in May, but slower than the downwardly revised 0.2% increase in April, the U.S. Census Bureau reported Thursday. 

Durable goods orders rose for the fourth month in a row, but at the slowest pace, due to solid demand for computer products and transportation equipment. 

Non-defense new orders declined 0.2%, and non-defense orders, which exclude volatile aircraft orders, known as capital goods orders, declined 0.6% in May after rising 0.3% in the previous month. 

 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.01% to 5,481.98, and the Nasdaq Composite rose 0.2% to 17,846.13. 

The yield on 2-year Treasury notes edged lower to 4.76%, 10-year Treasury notes increased to 4.31%, and 30-year Treasury bonds edged higher to 4.45%.

WTI crude oil increased $0.49 to $81.39 a barrel, and natural gas prices fell 2 cents to $2.79 a thermal unit.

Gold decreased by $24.04 to $2,322.58 an ounce, and silver rose 46 cents to $29.17. 

The dollar index, which weighs the U.S. currency against a basket of foreign currencies, edged lower to 105.75.

 

U.S. Stock Movers

Micron Technology declined 4.6% to $135.74, and the semiconductor company reported better-than-expected quarterly results. 

The company also issued a revenue outlook for the current quarter of $7.6 billion, which met some investors' expectations. 

Levi Strauss dropped 19% to $19.49 after the jeans maker reported weaker-than-expected quarterly results despite the current strong demand for denim products. 

AeroVironment declined 6.5% to $180.75, despite the maker of unmanned vehicles posting better-than-expected quarterly results. 

Revenue in the fiscal fourth quarter increased to $197 million, and adjusted earnings per share were 43 cents.