US stocks mixed ahead of presidential debate; chipmakers sink after Micron earns By Investing.com

Investing.com– U.S. stocks traded in a mixed fashion Thursday, as investors digested mixed economic data and disappointing guidance from chipmaker Micron, ahead of the first presidential debate.

At 09:40 ET (13:40 GMT), fell 20 points, or 0.1%, while climbed 8 points, or 0.2% and  rose 55 points, or 0.3%. 

Micron slides on lackluster guidance, other chipmakers follow 

Sentiment was hit Thursday after the release of earnings from Micron Technology (NASDAQ:), a company often seen as an industry bellwether due to its exposure to varied chip types and customers.

Micron’s quarterly earnings blew past market expectations, on strong demand from AI, but the in-line revenue guidance disappointed investors who were expecting more, especially given that Micron more than doubled in value over the past year. Its stock fell over 5%. 

Other chipmaking stocks also retreated, with market darling Nvidia (NASDAQ:) Arm Holdings (NASDAQ:) and Broadcom (NASDAQ:) all lower.

Economic data and Presidential debate in focus 

Still, losses are small as investors appear to be in something of a holding pattern ahead of key U.S. inflation data and the upcoming Presidential debate.

for key U.S.-manufactured capital goods unexpectedly fell in May, suggesting that business spending on equipment weakened in the second quarter as borrowing costs remain elevated.

However, first-time applications for U.S. drifted lower last week, which could allay fears of a signification deterioration in the labor market.

However, most eyes will be on Friday’s , as this is widely regarded as the Federal Reserve’s preferred inflation gauge.

Markets were also on edge before the first Presidential debate of the year later Thursday, between Democrat and Republican candidates, Joe Biden and Donald Trump.

Levi Strauss, Walgreens Boots slump 

In other corporate news, Nike (NYSE:) is due to release its latest earnings after the close.

Elsewhere, Walgreens Boots Alliance (NASDAQ:) stock fell 22% after the pharmacy chain cut its fiscal 2024 guidance due to a worse-than-expected retail environment and announced it would close more stores as part of a strategic review.

Levi Strauss (NYSE:) stock slumped 14% after the jeans manufacturer reported a miss in its fiscal second-quarter revenue, hit by sluggish demand at Docker’s, its khaki and chinos brand.

McCormick (NYSE:) stock rose 4.4% after the spice maker beat market expectations for second-quarter profit and sales, led by strong demand for its spices and seasonings in Europe, Middle East and Africa.

International Paper (NYSE:) stock fell 8.9% after Bloomberg reported that Suzano is no longer pursuing a takeout of the paper and packing group, with the Brazilian pulp giant said to have reached its maximum price.

Crude rebounds after US inventories build 

Crude prices bounced Thursday, rebounding after early losses in the wake of a surprise build in U.S. stockpiles. 

By 09:40 ET, the U.S. crude futures (WTI) traded 0.8% higher at $81.55 per barrel, while the Brent contract climbed 0.8% to $85.11 per barrel.

The U.S.  reported a 3.6 million barrel jump in the country’s stocks last week, according to data released late Wednesday, disappointing the market which had expected a draw of 2.6 million barrels. 

More worrying was a 2.7 million barrel build in gasoline inventories, which indicated that fuel consumption remained weak even with the onset of the travel-heavy summer season.

(Ambar Warrick contributed to this article.)