On Thursday, Micron Technology's stock surged over 13% following its better-than-expected earnings and guidance, which positively influenced other companies in the memory and storage sector, such as Sandisk and Western Digital.
However, this optimism was tempered by declines in major tech stocks like Apple, Amazon, Microsoft, Alphabet, and Meta, all of which face increased costs due to rising memory prices. Notably, Apple saw a nearly 5% drop after announcing price hikes for its MacBook and iPad models, raising concerns about potential demand destruction.
Additionally, the personal consumption expenditures price index, a key inflation measure for the Federal Reserve, aligned with expectations, contributing to a decrease in the benchmark 10-year Treasury yield. In another development, Intel's shares fell 2% after Goldman Sachs initiated coverage with a neutral rating and a $150 price target, suggesting a 14% upside.
Jeff Marks, Director of Portfolio Analysis, emphasized Intel's potential to benefit from the growth of AI and domestic chip manufacturing, despite Goldman favoring Nvidia, Broadcom, and AMD among large-cap chipmakers.
Lastly, FedEx Freight is set to report its first earnings as an independent entity, with expectations for management's insights on freight demand and profit margin improvement being more critical than the headline numbers. Marks indicated that any stock pullback could present a buying opportunity, similar to the approach taken with FedEx's recent earnings report