Stocks fluctuate after key data with Micron falling

He lives7 updates

• Thursday, June 27, 2024 at 12:30 PM EST

  Purdue Pharma ruling makes it harder for bankrupt company owners to avoid liability

  Yahoo Finance’s Alexis Keenan reports:

  New Supreme Court to rule That upended a $6 billion opioid settlement, making it difficult for a company’s owners to use federal bankruptcy proceedings to protect themselves from legal risks.

  Conflict – Harrington vs. Purdue – It involved the bankrupt OxyContin manufacturer Purdue Pharma and members of the Sackler family, the company’s billionaire owners.

  A key question in the case was whether Purdue’s bankruptcy proceedings could be used to protect the Sacklers’ personal fortunes from future liabilities related to opioids.

  In the 5-4 decision, the court said there was no provision in the US Bankruptcy Code that allowed the type of agreement that the Sacklers and the company attempted to reach.

  Read more here.

• 

  Thursday, June 27, 2024 at 11:40 AM EST

  With only a few years until retirement, 55-year-olds haven’t saved nearly enough

  Kerry Hannon, senior columnist at Yahoo Finance, says:

  Fifty-five-year-old Americans have an average retirement savings of less than $50,000.

  That’s grim news for older Gen

  “Too many people are falling behind, and this has important long-term implications for retirement.” David BlanchettHead of Retirement Research at PGIM DC Solutions told Yahoo Finance. “It’s not easy. We can always find things we’d rather spend money on today than save for this thing that’s going to happen in 10, 20, or 30 years.”

  It’s not just the future that looks bleak. They’re just squeaking about for now: More than a third of 55-year-olds say they’d have a hard time coming up with $400 for emergency expenses, compared with 19% of 65-year-olds and 15% of 75-year-olds. year, according to Survey from Prudential Financial.

  Read more here.

• 

  Thursday, June 27, 2024 at 10:08 AM EST

  Pending home sales decline in May

  Rising home prices and higher mortgages keep potential buyers away from the housing market.

  Pending home sales — a forward-looking indicator of home sales based on contracts being signed — fell 2.1% in May from the previous month, according to data from the National Association of Realtors. Data released on Thursday showed that it fell year-on-year by 6.6%.

  The Midwest and South recorded a decline in contract signings in May compared to the previous month. The northeast and west recorded gains. All regions across the country recorded losses in activity on an annual basis.

  “The market is in an interesting phase with high inventory and low demand,” Lawrence Yun, NAR’s chief economist, said in a statement. “Supply and demand dynamics point to a slowdown in home price growth in the coming months. More inventory in the job-creating economy is bound to lead to increased home buying, especially when mortgage rates are falling.”

  Mortgage rates are at their lowest average in three months, but that is still not enough to attract buyers. About 95% of mortgage borrowers have interest rates below current market rates, and about 80% have interest rates that are less than 2 percentage points below market rates, according to Goldman Sachs data.

  Looking ahead, Yoon expects “moderately lower mortgage rates, higher home sales, and stable home prices.”

• 

  Thursday, June 27, 2024 at 10:05 AM EST

  Walgreens declines 24% with lower guidance due to ‘challenging’ pharmacy trends and consumer weakness

  Walgreens stock fell 24% to touch its lowest level since 1997 after the drugstore chain cut its fiscal 2024 earnings guidance, citing “challenging pharmacy industry trends and a worse-than-expected U.S. consumer environment.”

  “Our customers have become increasingly selective and price-sensitive in their purchases,” Tim Wentworth, CEO of Walgreens Boots Alliance, said during the company’s earnings call Thursday morning.

  Management indicated that 25% of the company’s stores are not currently contributing to the long-term strategy and that “changes are imminent.”

  Walgreens said it plans to close a “significant portion” of its underperforming stores over the next three years.

  The company expects its adjusted net earnings per share for the current year to range between $2.80 and $2.95, down from its previous expectations, which ranged between $3.20 and $3.35.

• 

  Thursday, June 27, 2024 at 9:48 AM EST

  Netflix and Meta are helping push the Nasdaq into the green

  Telecom stocks boosted the Nasdaq Composite (^IXIC) into positive territory with a 0.3% gain shortly after the market opened on Thursday.

  Netflix (NFLX) and Meta (META) both advanced more than 1%, helping lift a tech-heavy gauge that had dipped just below the flat line.

  The S&P 500 (^GSPC) rose 0.2% while the Dow Jones Industrial Average (^DJI) was little changed.

  Meanwhile, shares of chip giant Nvidia ( NVDA ) fell slightly after Micron ( MU ) sales forecasts failed to galvanize investors over the AI ​​craze that has fueled the broader market’s rally this year.

• 

  Thursday, June 27, 2024 at 9:35 AM EST

  Stocks swing at open as investors weigh economic data, Micron puts cap on tech rally

  Stocks opened slightly lower on Thursday as investors weighed economic data released before the bell.

  The S&P 500 (^GSPC) was little changed, while the Dow Jones Industrial Average (^DJI) fell 0.1%. The tech-dominated Nasdaq Composite (^IXIC) fell just below the straight line.

  Real GDP growth at an annual rate of 1.4% in the first quarter of 2024 Third estimate It was issued by the Office of Economic Development Thursday morning. The reading was slightly higher than the previous reading of 1.3% but still showed the slowest growth since 2022.

  The initial weekly unemployment claims reading came in at 233,000, a decrease of 6,000 from the previous week. according to Ministry of Labor data.

  On the corporate front, chipmaker Micron’s (MU) sales forecast for the current quarter met expectations but failed to satisfy investors looking for stellar outperformance from AI-related companies. The stock fell about 4% in early trading. AI chip giant Nvidia (NVDA) was also down nearly 1% at the open.

• 

  Thursday, June 27, 2024 at 5:24 AM EST

  Why does Levi’s neighborhood bother me?

  Levi’s (LEVI) shares fell 15% in premarket trading after the earnings announcement.

  I think it’s worth it for two reasons.

  First, sales in China fell by 10% from the previous year. I recently spoke with a large number of people who recently visited China. One theme is that Chinese consumers are feeling the gloomy side and are not spending as much as in years past. This mood is impacting demand for Levi’s jeans, Starbucks (SBUX) coffee, and — according to General Mills’ (GIS) earnings call yesterday — Häagen-Dazs ice cream.

  It is difficult to see the turning point in China.

  The same goes for Levi’s wholesale business, or the business that sells in department stores. Sales decreased 4% from the previous year. The company’s commentary indicates that wholesale demand may not pick up until 2025.

  I plan to raise some of my concerns with Levi CFO Harmit Singh today at 10:30 AM ET on Yahoo Finance. Discipline!