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Stock market today: Dow closes higher as tech reigns supreme on Micron rally

Published 03/29/2023, 03:57 PM
Updated 03/29/2023, 04:09 PM
© Reuters.

By Yasin Ebrahim -- The Dow closed higher Wednesday, driven by a Micron-fueled surge in tech and further signs of easing worries in the banking sector.

The Dow Jones Industrial Average added 1%, or 323 points, the S&P 500 rose 1.4%, and the Nasdaq gained 1.8% ending the day at its highest level since August. 

Micron Technology Inc (NASDAQ:MU) jumped more than 7%, pushing chip stocks and the broader tech market higher after the chipmaker’s better-than-expected revenue guidance and positive commentary on a bottom in chip demand offset quarterly results that fell short of estimates.

“Micron's commentary around improving customer inventory levels and the company's forecast for bit shipment growth into FQ3 (and moving forward) suggests that industry fundamentals are closer to bottoming,” Wedbush said in a note.

Other chip stocks also caught a bid, with Intel Corporation (NASDAQ:INTC), Lam Research Corp (NASDAQ:LRCX) and Marvell Technology (NASDAQ:MRVL) sharply higher.

Broadcom (NASDAQ:AVGO), however, notably lagged the move after the UK launched a further probe into the chipmaker’s merger with VMware (NYSE:VMW), citing antitrust concerns.

Consumer stocks were also among the top gainers on the day, driven by a rally in Carnival (NYSE:CCL) after Susquehanna upgraded the cruise line to Positive from Neutral on expectations that ongoing volume and pricing momentum will boost margins.

Retail stocks struggled to participate in the broader market melt-up after the UBS downgraded a slew of retailers on worries of the impact of a consumer slowdown.

UBS downgraded Ross Stores (NASDAQ:ROST), Burlington Stores (NYSE:BURL), Urban Outfitters (NASDAQ:URBN), and Foot Locker (NYSE:FL) to Sell from Neutral.  

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“Our view has been a consumer spending slowdown will cause the industry’s earnings outlook to deteriorate throughout the year, leading to persistent downward EPS revisions,” it added.

Bank stocks were also in the ascendency as concerns about a contagion continue to ease, with regional banks including First Republic Bank (NYSE:FRC), Lincoln National Corporation (NYSE:LNC) and Zions Bancorporation (NASDAQ:ZION) leading to the upside.

Energy stocks, meanwhile, rose more than 1%, as strong sentiment on the sector overshadowed weaker oil prices.

The slip in oil prices comes even as data showed U.S. weekly crude inventories unexpectedly fell last week.

Devon Energy Corporation (NYSE:DVN), EQT Corporation (NYSE:EQT), and EOG Resources Inc (NYSE:EOG) rose about 2% on the day.

In other earnings news, Lululemon Athletica Inc (NASDAQ:LULU) jumped more than 12% after the athleisure wear company reported quarterly results that topped Wall Street estimates, driven by strong demand and a reduction in inventories.

The quarterly results marked “a clear indication of a brand that continues to resonate well with an expanding base of core consumers,” Oppenheimer said, and a management team and business model that are "navigating well a choppy, uncertain consumer backdrop.”

Latest comments

US stocks don't trade in a market. They trade in the largest posi scheme ever created. lol
Intel up 8% ,lol
that's how stick trade in a world of likes and dislikes.
How about $SIVBQ (sillicon valley bank) up 150% on the day… 👀
nice to have friends at the treasury
News that would cause stocks to go down completely ignored...on that note, any news on Charles Schwab?
or huge outflows leaving banks?
Revenue decreases over 50% YOY and the stock trades at the same price, i mean whats not to like? Of course is has not be a buy in this JOKE of a “market.” I bet they think its excellent price to buy for your retirement. Criminals defrauding the american people in broad day light. Assume the proper position
Fry ♨️♨️
go to the hospital crazy
We once valued stock on earnings capacity. Now, we value stock on likes and dislike. Why do we waste money and time on professionals?
We still do 🕵️🕵️, keep slicing burgers
This ponzi SP 500 will crash just like the Japanese market in 1990
Fry ♨️♨️
Worst revenue so far but best 🐂💩frim MU
The perfect ponzi scam ever created, the stock market. completely legal to rob and scam.
Fry ♨️♨️
i should go into the business of selling tin foil hates to conspiracy theory and uneducated fake news m.a.g.ats
The major problem of MU is that it is directly competing with SAMSUN and SIMC. Both competitors are extremely strong in scale and technology, especially SIMC which owns the largest semiconductor market. MU will slowly become a more domestic company with limited market and fund for further technology improvement.
U.S. Capital Markets resemble an organized crime regime.
Everyone who commits sin is a slave of sin. John 8:31-42
Money is sinless 💰💰
but trump didnt steal millions from his followers and the govt and the russians and saudis. please.
Greatest financial FRAUD in history, and biggest investment JOKE in the world.
We're here to keep you and your fans poor Mitchel regardless of how you approach the market 💀💀!
As Chad & Co reams the shorts 💀💀!
As Chad & Co reams the shorts 👉👌!!
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