The stock market remained lower after prominent chipmakers lowered forecasts. The Dow Jones Industrial Average fared better than other indexes with a 0.1% loss after it pared losses.
The S&P 500 slid 0.5% from yesterday's close, while the tech-driven Nasdaq composite has fallen by 1.4%. The Russell 2000, which outperformed Monday, lagged with a 1.7% drop.
Crude oil is near $90 a barrel, down from its session high $92.65. The yield on the 10-year Treasury rose 3 basis points to 2.8%.
Volume was lower on the NYSE by 10.2% compared to the same time yesterday. Nasdaq volume was up 2%.
Investors are also uncertain as the market looks toward tomorrow's inflation numbers that will tell us more about the likelihood of the next interest-rate hike in September.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 32787.51 | -39.68 | -0.14 |
| S&P 500 | (0S&P5) | 4117.15 | -17.13 | -0.41 |
| Nasdaq | (0NDQC ) | 12449.35 | -176.89 | -1.54 |
| Russell 2000 | 189.56 | -3.26 | -1.69 | |
| IBD 50 | 28.73 | -0.61 | -2.06 | |
Last Update: 12:00 PM ET 7/27/2022 |
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Semiconductors Pressure Stock Market
Micron reduced its forecast and expects weaker demand and negative free cash flow this quarter. The DRAM and NAND flash memory maker anticipates slowing demand not just in the PC market, but also in data centers, industrial, and automotive applications.
Micron shares are down about 5% today to below the 50-day and 200-day moving averages, after it also said it will cut capital spending. Shares of chip-equipment maker Applied Materials saw a steeper decline of 8% in sympathy with Micron. Earlier, Intel also cut its capex forecast.
Nvidia warned Monday that revenue would fall 19% in the second quarter. Shares are testing the 50-day moving average today.
GlobalFoundries beat Wall Street estimates this morning and increased its outlook. The chipmaker earned 59 cents a share on sales of $1.99 billion and increased its current-quarter earnings outlook to 62 cents on $2.05 billion revenue.
The semiconductor manufacturer has contracts with Qualcomm, Motorola, the Department of Defense and STMicroelectronics. GFS shares surged 11% ahead of earnings on Monday but reversed lower today, down 7%, as semiconductor news weighed on the sector.
Stock Market News
Coinbase is on pace to end a five-day winning streak ahead of its earnings report after today's close. Also on watch is metaverse company Roblox. According to FactSet, the company is likely to lose 25 cents a share on $639.2 million revenue. In its first quarter, Roblox lost 27 cents a share on $631.2 million revenue.
Elsewhere, shares of technology startup investor and consumer lender Sofi Technologies are selling off after news that its biggest stakeholder, Japanese conglomerate SoftBank, is pulling out. SoFi bank realized a $23 billion loss last quarter. Earlier SoftBank sold its share in Uber. SoFi shares had just moved above the 50-day line about a week ago.
Tesla announced that Aug. 25 will be the date of its 3-for-1 stock split. Shares of the EV giant were up yesterday after the Senate passed a sweeping health care and energy bill. Tesla has also secured a $5 billion deal to acquire nickel from Indonesia over the next five years.
IBD Leaderboard stock Cheniere Energy rose less than 1% and continues to hold close to a buy point of 150.10 as Russian oil is cut off from Central Europe.
Chip Sell-Off Hits Market Rally With Inflation Data Due
Leisure, Restaurant Stocks Rise On Strong Earnings
In the restaurant segment, Applebee's and IHOP chains' parent Dine Brands had a strong quarter as dine-in and off-premise traffic increased. Same-restaurant sales increased by 1.8% and 3.6% at Applebee's and IHOP, respectively, from the same quarter in 2021. Shares have repeatedly met resistance at the downward sloping 200-day line, but they've been above the 50-day line for a couple of weeks.
Hyatt earned 46 cents a share, above estimates of 6 cents, though sales of $1.359 billion were below estimates of $1.367 billion. The company continues to see strong bookings and a rebound in business travel. The stock appears poised to break above its 200-day line.
