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Stock Market Today: Dow Stumbles on Micron Warning; Inflation Data Eyed

Stock Markets Aug 09, 2022 04:04PM ET
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By Yasin Ebrahim

Investing.com -- The Dow slipped Tuesday, a day ahead of a fresh update on inflation, after chipmaker Micron's profit warning weighed on tech stocks.  

The Dow Jones Industrial Average fell 0.17%, or 56 points, the Nasdaq was down 1.2%, The S&P 500 fell 0.42%.

Micron Technology (NASDAQ:MU) forecast negative free cash flow for the second-quarter, driven by a fall in revenue as weaker PC and video game sales is expected to weigh on chip demand. Its shares fell more than 4%.

The warning from Micron came just a day after Nvidia (NASDAQ:NVDA) also warned on performance and triggered a sea of red across chip stocks, dragging the broader tech sector deep into the red.

Consumer discretionary stocks were on the backfoot weighed down by plunge in cruise companies and retailers following weaker than expected results.

Norwegian Cruise Line (NYSE:NCLH) reported second-quarter results that missed Wall Street’s expectations and delivered gloom guidance, forecasting that occupancy levels aren’t expected to return to pre-pandemic levels until next year.

Royal Caribbean Cruises (NYSE:RCL), and Carnival (NYSE:CCL) were down more than 5%.

Ralph Lauren (NYSE:RL) fell more than 4% after the luxury retailer after reporting fiscal first quarter results that topped analysts’ estimates, but warning that a strong dollar will prove a drag on revenue growth in 2023.

Signet Jewelers (NYSE:SIG) slumped 11%, after slashing its second-quarter and full-year guidance on weaker than expected July sales as red-hot inflation continues to put the squeeze on consumers.

Allbirds (NASDAQ:BIRD) also cut guidance after flagging a slowdown in consumer spending, sending its shares more than 19% lower.

Energy stocks, meanwhile, bucked the broader trend lower even as oil prices pared gains on fresh hopes for a breakthrough on US-Iran talks to revive the 2015 Iran nuclear deal that would pave the way to bring much-needed barrels to the market.

ONEOK (NYSE:OKE), Marathon Petroleum (NYSE:MPC), and Occidental Petroleum Corporation (NYSE:OXY) were among the biggest gainers with the latter supported news that Warren Buffett’s Berkshire Hathaway increased its stake in the oil giant to over 20%.

The two-day wobble in stocks come just a day ahead of July’s inflation report, which many believe could show inflation peaking, and dissuade the Federal Reserve from stepping up the pace of monetary policy tightening.

Economists are forecasting that the pace of inflation slowed to 8.7% in the 12-months through July from 9.1% in February.

Stock Market Today: Dow Stumbles on Micron Warning; Inflation Data Eyed
 

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Comments (3)
Larry Layton
Larry Layton Aug 10, 2022 12:50AM ET
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"and dissuade the Federal Reserve from stepping up the pace of monetary policy tightening." oh so now a   .75 hike in September is seen as moderate ,lol
Buy And Sell
Buy And Sell Aug 09, 2022 6:58PM ET
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Huge crash is coming in the authumn, sorry guys!
Rob Fordham
Rob Fordham Aug 09, 2022 6:58PM ET
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Maybe but if so time to buy bigtime
Milan Shukla
Milan Shukla Aug 09, 2022 6:58PM ET
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Rob Fordham sure, only if you’re spare cash to lose
Robin Hood
RobinHdJr Aug 09, 2022 5:17PM ET
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Have any of the past quarter point rate hikes slowed inflation? Since the answer is no, then why would doing the same exact thing result in anything different this time around?  Gasoline, utilities, and groceries are basic necessities.  While interest rate hikes may slow down the housing market, people don't evaluate the interest rate when deciding whether to turn on the AC or buy bread and milk.  Therefore, it will have zero effect on inflation in such areas. Such commodities is a function of supply and demand, not interest rates. While it is true that gasoline has went down a little from June, on the other hand, 40 year records in heat were broken for the second half of July, forcing utility bills thru the roof for much of the south and east coast.  I predict the hike in utility bills overshadows any gasoline price savings. Time will tell, whether my predictions are accurate
First Last
First Last Aug 09, 2022 5:17PM ET
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Based on what do you say "answer is no"?  How do you know what inflation would be now if those rate hikes didn't happen?
Robin Hood
RobinHdJr Aug 09, 2022 5:17PM ET
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First Last  Go to BLS, look up CPI monthly for 2022. It has gone up every month for 2022 (positive) and not negative.  Would inflation be worse without the quarter of a point hikes? Probably. However, the fact remains inflation has NOT gone down.  Instead, June 2022 shows an all time high of 9.1%, the likes of which have not been seen since 1980, over 40 years ago. How then can one argue that the quarter of a point rate hikes are effective at deterring? They are not enough.
John Avenetti
John Avenetti Aug 09, 2022 5:17PM ET
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Well, who do you work for or did you work for? Clients? Yourself but still had clients? You worked for someone and had to answer to someone right? WHO do the "Federal Reserve board of Governors" work for? It's a private banking cartel controlled by the wealthiest families in the world not listed on any richest person list. Bezos and Musk are nickle baggers when compared to these folks. The Fed does what they're told, they don't work for you, they work against you. Do you actually believe what they said??? "We didn't know that printing trillions while forcing the US tax payer to take on this debt was going to cause inflation? " Anyone who believes that should go back to elementary school. People need to stop listening to all the BS they're told and think/research for themselves.
Jeffrey Angelini
Jeffrey Angelini Aug 09, 2022 5:17PM ET
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John Avenetti my man spitting straught facts
 
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