Chip stocks experienced a decline, prompting attention from investors as they prepare for a series of important economic data releases. Initial jobless claims are expected to be around 223,000, while durable goods orders are projected to drop by 4%. The third reading of real GDP is anticipated to show a growth rate of 1.7%.
Treasury Secretary Scott Bessent expressed optimism for GDP growth to return to 3% by year-end. Additionally, the personal consumption expenditures price index is expected to rise by 0.5% month-over-month and 4.1% year-over-year. In earnings news, Darden Restaurants saw a 6% increase in stock value over the past three months, while McCormick's shares fell by 8%.
Winnebago's stock is down 22% in the same period. BlackBerry, now focused on software, reported a 167% increase in stock value over three months but is down 20% from its June peak. Micron Technology's shares rose 16% after beating earnings estimates, with CEO Sanjay Mehrotra noting ongoing supply shortages in memory and storage.
Qualcomm's stock increased 13% following an investor day where it projected non-handset revenue to reach $40 billion by 2029. In the banking sector, Goldman Sachs, Morgan Stanley, Wells Fargo, and JPMorgan announced dividend increases following stress test results, reflecting strong financial health.
Goldman Sachs raised its dividend from $4.50 to $5, while Morgan Stanley increased its from $1 to $1.15. Wells Fargo's dividend rose from 45 cents to 50 cents, and JPMorgan's increased from $1.50 to $1.65, alongside a $50 billion stock repurchase program.
Overall, these developments indicate a mixed but cautiously optimistic outlook for various sectors as investors await further economic indicators