|Day's Range||21.20 - 21.20|
American steel importers asked the highest court in the land to review a March ruling from the U.S. Court of International Trade that upheld the constitutionality of Trump imposing a 25% tariff on imported steel and a 10% duty on imported aluminum. Yahoo Finance's Zack Guzman & Heidi Chung, along with Payne Capital Management Senior Wealth Adviser Michelle McKinnon discuss.
Micron Technology (MU) was the best-performing stock of 2017, growing more than 80%. During its last quarterly earnings results on March 20, 2019, Micron stock rose ahead of its earnings and jumped 9.6% one day after its earnings release as it beat analysts’ EPS estimate even though it missed their revenue estimate.
The US-China trade war has heated up and both the countries seem willing to fight until the end. The trade war is changing the global semiconductor supply chain, as the United States is the biggest exporter and China is the biggest importer of semiconductor chips. The rising trade tensions between the two encouraged many chip companies to shift their production outside China.
U.S. stock futures declined on Tuesday as investors were taking a defensive stance on risk ahead of this weekend's G-20 summit in Japan. With Donald Trump announcing a new set of sanctions on Iran, and U.S. officials downplaying expectations for a breakthrough in talks with Beijing from the upcoming G-20 meeting with China's Xi Jinping, investors appeared unwilling to reach for risk in the absence of headline drivers on trade or central bank support. Powell will be interviewed by New York Times senior economics correspondent Neil Irwin at the Council on Foreign Relations in New York at 1 p.m. ET.
For that reason, soft results and guidance might not by themselves be enough to drive Micron's shares lower post-earnings. Rather, what might matter is just how bad Micron's near-term results and guidance are, and how quickly the company expects conditions to improve. On average, analysts polled by FactSet expect Micron to report May quarter (fiscal third quarter) revenue of $4.69 billion (down 40% annually) and non-GAAP EPS of $0.79 (down 75%).
has a five-year track record of solid revenue growth, improved margins, and strong profitability. More recently, though, the stock is getting pulled into the ongoing trade war between the United States and China. Earnings per share increased 51% in fiscal 2018 (May) to $16.79 per diluted share.
Micron Technology (MU) is a cyclical stock governed by memory prices, which are driven by demand and supply forces. If we look at Micron stock’s valuation, it looks like a cheap stock with strong growth potential. However, the cyclical nature of the stock makes valuing it difficult.
Micron Technology Inc. seems poised to report a “fugly” quarter on Tuesday and may lose money by the end of the year, according to Citi, but its stock could be nearing a bottom.
Investing.com - The market’s focus on interest rates is likely to continue tomorrow with Federal Reserve Chairman Jerome Powell making a public appearance so soon after his post-FOMC press conference.
(MU) may lose money later this year because of falling memory chip prices, according to Citi Research. The chip maker will report its fiscal third-quarter earnings results on Tuesday. Micron stock (ticker: MU) has fallen nearly 20% over the past 3 months as hopes for a recovery in chip prices have faltered.
Micron Technology (MU) is currently in the middle of a cyclical downturn and the US-China trade war. The company has reduced its production to address the issue of oversupply, but the trade war and the US trade ban on Huawei have weakened semiconductor demand, partially offsetting the effects of reduced supply.
Micron Technology (MU) is already in a cyclical downturn with prices of DRAM (dynamic random access memory) and NAND (negative AND) falling due to oversupply. In its two-year growth cycle from mid-2016 to mid-2018, Micron prepared for a down cycle by reducing its production cost and debt and building its cash reserves.
This week is all about anticipation, as everything arguably comes down to the meeting between Presidents Xi and Trump at G20 starting Friday. Treasury yields are under pressure again this morning and the Cboe Volatility Index (CBOE) remains above 15 even though stocks are near all-time highs. A host of major companies—some of which could deliver important tidings on consumer health and the trade situation with China—share results this week.
The memory industry is currently in a cyclical downturn, which is being aggravated by the economic downturn triggered by the US-China trade war. Micron is a US-based company and earns 57% of its revenue from China. Hence, trade tensions between the two countries are having an adverse impact on its performance.
The memory industry has been in a cyclical downturn as supply exceeded demand in 2018. As memory is an oligopoly market, chipmakers reduced production to bring industry supply in line with demand. These efforts started to show results as decline in DRAM (dynamic random access memory) prices slowed.
Citi Research analyst Christopher Danely wrote Monday that Micron Technology Inc. could lose money by the end of the year "given how bad the DRAM environment is." While the last two DRAM downturns lasted six to eight quarters, the current downturn has only been going on for three quarters, Danely wrote. "On the bright side, we believe that the stock is close to a bottom, so long-term investors could nibble away at it," he said. Danely, who has a sell rating on the shares, argued that the company's Tuesday afternoon earnings report "should be fugly" as he expects that Micron will fall short of its outlook due to DRAM challenges. Micron's stock is down 0.3% in premarket trading Monday. It's gained 4.8% so far this year, as the S&P 500 has risen 18%.
NAND prices have been falling since last year, as most chipmakers transitioned from 2D planar NAND to 3D NAND, which created an oversupply situation. According to the DRAMeXchange, all NAND chipmakers’ NAND ASPs fell between 20% and 30% in the first quarter and are expected to continue falling in the second quarter.