33.85 -0.88 (-2.53%)
Pre-Market: 7:03AM EDT
|Bid||33.71 x 21500|
|Ask||33.88 x 900|
|Day's Range||34.63 - 35.45|
|52 Week Range||28.39 - 64.66|
|Beta (3Y Monthly)||1.41|
|PE Ratio (TTM)||3.17|
|Earnings Date||Jun 25, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||46.63|
US District Judge Lucy Koh made a ruling on the FTC's Qualcomm case, saying they did violate US anti-trust laws. The cyclical nature of the semiconductor business makes it very sensitive to economic factors.
BOISE, Idaho, May 22, 2019 -- Micron Technology, Inc. (Nasdaq: MU) announced today that it will hold its fiscal third quarter earnings conference call on Tuesday, June 25, 2019.
Stocks of companies that supply parts and services to Apple Inc. fell Wednesday. Among notable small-cap stocks of companies supplying Apple, two rose while 25 fell. R.R. Donnelley & Sons shares rose 15 cents, or 5.
Shares of Micron Technology Inc. slumped 2.6% in afternoon trade Wednesday, after CFRA analyst Angelo Zino turned decidedly bearish on the memory chip maker, citing concerns over DRAM prices and the U.S. ban on doing business with China's Huawei Technologies. Zino cut his rating to strong sell from hold, and slashed his price target to $32, which is 7.8% below current levels, from $46. He believes Wall Street consensus earnings estimates need to see "significant downward revisions," as DRAM prices appear unlikely to stabilize in the near term given "excessive" customer inventories, and given that Huawei is a relatively large customer of Micron. "While we applaud [Micron's] ability to improve its balance sheet in recent years, we are growing more concerned about the magnitude of a potential cyclical recovery given the aforementioned issues," Zino wrote in a note to clients. The stock has shed 18.5% over the past three months, while the PHLX Semiconductor Index has slipped 1.2% and the S&P 500 has gained 2.4%.
Wall Street closed sharply higher on Tuesday after the U.S. government provided temporary relief to Huawei Technologies, allowing it to import U.S. inputs for the time being.
U.S. stock futures are trading lower premarket. But, honestly, what's new? Down gaps are becoming a daily occurrence, only occasionally interrupted by an up gap. The headline for today is "the summer chop continues."Against this backdrop, futures on the Dow Jones Industrial Average are down 0.31%, and S&P 500 futures are lower by 0.38%. Nasdaq-100 futures have shed 0.60%.In the options pits, overall volume levels fell off a cliff yesterday. Calls proved more popular than puts adding to 14.6 million contracts versus 11.8 million traded for puts.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe ebb in put demand sent the CBOE single-session equity put/call volume skidding to 0.57 -- a two-week low. The 10-day moving average finally rolled over, falling to 0.71.Options trading for individual stocks was a veritable snooze fest. Many of the companies that landed on the top ten list didn't even exceed their average daily volumes. Today we'll breakdown Kohl's (NYSE:KSS), Bank of America (NYSE:BAC) and Micron Technology (NASDAQ:MU).Let's take a closer look: Kohl's (KSS)Kohl's reported earnings on Tuesday and investors were not pleased by the results. The selling frenzy took KSS stock down 12.3% amid colossal trading volumes. By day's end, 26 million shares had changed hands, marking the highest volume session since January 2017. * 10 Small-Cap Stocks That Look Like Bargains With the downdraft, shares of the retailer now sit at an eighteen-month low, submerged well beneath all major moving averages. The gap places KSS in no man's land from a price chart perspective, and that makes it challenging to build out a trade. Perhaps the best play is to wait for some type of relief rally, then deploy bear trades when it fails.For a more in-depth view on the earnings numbers, go here.On the options trading front, traders gobbled up put options. Activity ballooned to 522% of the average daily volume, with 76,111 total contracts traded; 62% of the trading came from put options alone.Ahead of the number, options were anticipating a gap of $4.25 or 6.7%, so the 12.3% doubled expectations. Volatility buyers via straddles or strangles won the day. Implied volatility fell throughout the day, landing at 36% or the 29th percentile of its one-year range. Bank of America (BAC)The price chart of BAC stock provides little excitement. Even when it's trending, it lacks the sexiness of a tech stock. Unfortunately, it doesn't even have that going for it. Outside of the quick jump that kicked-off the new year, BAC has been stuck in a choppy trading range between $28 and $30. At present, it's basing at the lower end of the range.If you're inclined to trade it, I suggest cash flow plays like covered calls and naked puts. Directional trades are too hard right now.On the options trading front, traders favored calls over puts. Total activity came in slightly below normal at 98% of the average daily volume, with 234,336 contracts traded. Calls claimed 34% of the sum.Implied volatility slipped to 24% placing it at the 25th percentile of its one-year range. Premiums are quickly becoming cheap here. The expected daily move is 44 cents or 1.5%. Micron (MU)The recent trade war flare-up has proved particularly painful for semiconductors. Since topping out last month, MU stock has fallen 20% -- entering a Wall Street defined bear market in the process. Yesterday's market rally lifted the ailing chip company from the depths, for a day at least. * 7 Safe Stocks to Buy for Anxious Investors Unfortunately, there's still plenty of overhead resistance and one up day does little to change the overall downtrend. More evidence is needed before the trend has turned higher.As far as options trading goes, puts were the hot ticket of the day. The total activity ended at 93% of the average daily volume, with 117,729 contracts traded. Puts accounted for 65% of the tally.Implied volatility dropped to 49% landing it at the 39th percentile of its one-year range. It's still high enough to make short premium strategies compelling. The expected daily move is now $1.11 or 3.1%.As of this writing, Tyler Craig didn't hold a position in any of the aforementioned securities. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Safe Stocks to Buy for Anxious Investors * 4 Tech Stocks Looking Vulnerable * Should You Buy, Sell, Or Hold These 7 Hot IPO Stocks? Compare Brokers The post Wednesday's Vital Data: Kohl's, Bank of America and Micron Technology appeared first on InvestorPlace.
The S&P; 500 fell 9 points or 0.3% by 9:44 AM ET (13:44 GMT), while the Dow lost 90 points or 0.4% and tech-heavy Nasdaq composite was down 22 points or 0.3%.
Understanding the Impact of Trump’s Huawei Ban on US StocksHuawei banLast week, Donald Trump blacklisted Chinese telecom giant Huawei Technologies amid rising US-China trade tensions, restricting US companies’ transfer or supply of any
After a disastrous end to 2018, where the market was flooded with too much supply and low demand, the chips market seems to be on the up and up. Though this isn’t unexpected — the market is historically cyclical — this past downturn was worse than in recent memory. But with pricing seeming to bottom out, many are expecting Micron (MU) to regain lost ground. And Micron’s stock price seems to be seconding this. Shares climbed as much as 32% before the recent flare-up of tension between the US and China.Analyst Ambrish Srivastava of BMO isn’t too concerned with the geopolitical tension, as he maintains his Outperform rating and $50 price target on the stock. (To watch Srivastava's track record, click here) Srivastava says he sees Micron “as a structurally more profitable company in a structurally better DRAM industry, and [does not] see Micron burning through cash like in the cycles past.” The analyst believes the company is strong, while viewing the industry as in better shape than recent past. While industry-level downturns will negatively impact even the best-operated company, Srivastava believes Micron still has control at the wheel. He says, “there are several puts and takes to spend for clean room space, for back-end, and for node migration…[which] is all within the purview of what the company thinks about bit growth for the industry.” But while the analyst remains confident that Micron is digging itself out of trouble, he says inventory will “continue to rise in the near term which will be a headwind for working capital.” Higher inventory has plagued the industry over the past year, as lower demand has contributed to lower selling prices and revenue. Like many in the industry, the analyst believes Micron is a second-half investment. It will take time for inventory levels to normalize, which will help contribute to higher selling prices. Furthermore, as tensions between the US and China ease (as many expect), this will give confidence to downstream buyers, which may also help spur demand.All in all, while some argue Micron doesn’t have too much control over its own future because of industry trends, the argument could also be made that the company still has the power to control spending and inventory. That is the expectation moving forward, as Micron seems to have learned from mistakes of the recent downturn. As a result, and though the company still has some work left to do, analysts are bullish on its future.MU has a cautiously optimistic Moderate Buy consensus rating from the Street. This breaks down into 13 'buy', 9 'hold' and 3 'sell' ratings in the last three months. We can also see from TipRanks that the average analyst price target is $53.42 - 52% upside from the current share price. Read more on MU: * J.P. Morgan Remains Bullish on Micron Following Investor Meeting * MKM Continues to Recommend Micron (MU) Stock; Here’s Why * Micron (MU) Stock Is Heading Back Down to $32, Analyst Says More recent articles from Smarter Analyst: * A Look at Qualcomm (QCOM)-FTC Outcome and Its Impact on Apple (AAPL) * It's Time to Cut Estimates for Tesla (TSLA); Stock Remains a Long-Term Opportunity * Will Qualcomm (QCOM) Stock Price Get Back to $60-65? Not So Sure * Putting General Electric Management Under the Microscope Is Bad News for GE Stock
Analysts at Morgan Stanley believe a re-acceleration of semiconductor shipments in the second half of the year is unlikely in this macro environment.
The U.S. government has imposed heavy restrictions on Huawei, accusing the world's largest telecommunications equipment maker of being vulnerable to involvement in activities contrary to national security or foreign policy interests. Huawei denies this, saying Washington has produced no evidence to back up its claims and that independent testing of its equipment shows no vulnerability to potential Chinese espionage. Huawei Vice-President Catherine Chen told newspaper Corriere della Sera in an interview published on Tuesday that the company had been working in Europe for 10 to 20 years, collaborating closely with telecoms firms on developing 5G networks.
Post U.S. blacklist, Google denied Huawei access to certain updates to the Android system. Here, we study the impact of the ban on some semiconductor ETFs with exposure to Huawei's key U.S. suppliers.
Global equity markets fell on Monday as a U.S. crackdown on China's Huawei Technologies led chipmaker stocks in Europe and on Wall Street to slide on fears of a widening trade war, while the dollar was steady before fresh insight on the Federal Reserve's interest rates policies this week. China accused the United States of harbouring "extravagant expectations" for a trade deal, underlining the gulf between the two sides as the U.S. action last week against Huawei began to hit the global tech sector. Alphabet Inc's Google suspended some business with Huawei, Reuters reported, and Lumentum Holdings Inc, a major supplier of Apple Inc's face ID technology, said it had discontinued all shipments to Huawei.
Stocks did a good job bouncing off their morning lows, but how long can bulls keep that action up? The market would do a whole lot better if investors didn't have to worry about a tweet from the president sending a ripple through Chinese and U.S. trade negotiations, but that's the market we have right now. Let's look at some top stock trades to get started on next week. Top Stock Trades for Tomorrow 1: BaiduBaidu (NASDAQ:BIDU) has one of the worst-looking charts out there among the names that I follow.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIt made a really elongated wedge from 2015 to 2017. I was hoping the bulls would be able to keep the stock above the backside of this prior resistance mark, but so far, no cigar. Maybe they can salvage it next week, but it's looking pretty awful.Below all of its major weekly moving averages (and daily moving averages for that matter), as well as any meaningful support level and this one is simply a no-touch for traders. Shares are down more than 15% after reporting earnings. * 6 Chinese Stocks That Could Pop On a Trade Deal Until we see some hints of a reversal (maybe near $115 to $120) or until BIDU can reclaim $130 and $140, this one is stuck in no man's land for the time being. Top Stock Trades for Tomorrow 2: Tesla Click to EnlargeWe've been sounding the alarm bell on Tesla (NASDAQ:TSLA) since long-time range support near $245 to $250 gave way. It's been stuck in this nasty downtrend and is making new 52-week lows on Friday.Do bulls make a stand next week, perhaps near $210? Maybe. Or we might continue to see a flush. Wait for the move first, then react. Reclaiming channel support gives investors a level to shoot against while aiming for a retest of channel resistance. See how it trades on Monday and Tuesday. Top Stock Trades for Tomorrow 3: iQiyi Click to EnlargeDown more than 6% and it's clear that the market doesn't care about iQiyi's (NASDAQ:IQ) strong user growth or revenue growth. Profits are missing and that's worrying investors. It doesn't help that IQ is a Chinese stock too.The sign it was in trouble came once shares broke below $23, the gap-from level back in February. For those that needed an even more clear sign, the retest-and-fail earlier this month (purple arrow) showed that IQ's time was up.Below all of its major moving averages and with a trend pointed lower, IQ stock doesn't look good. Maybe it bottoms near $18 to $18.50. If it breaks this mark, there could be a long way down. Keep in mind this stock was below $15 back in December. For anything sustainable to get going on the long side, it needs to get above its 20-day moving average. Top Stock Trades for Tomorrow 4: Deere Click to EnlargeDown 7.25% on earnings and it's a tough day for Deere (NYSE:DE) too. Shares broke below range support at $155, as well as the 50-week moving average near $150. Now near $136, and DE may actually be setting up as a solid risk/reward long.Shares have only closed below $135 on a weekly basis once since December 2017. Should this level hold next week, it could be a good spot to nibble. There have been a few "shoots" below this mark -- some to the upper-$120s, some just into the $134s -- but by and large $135 has held. A close below could take DE to $125.Ideally, we see DE shoot below $135 before reversing higher and closing above this week's lows. Then we'll have a more measurable setup. Top Stock Trades for Tomorrow 5: Micron Click to EnlargeLast but not least, here's a good lesson in Micron (NASDAQ:MU). Shares are down 3.3% on Friday and have been hammered these past few weeks. Remember at the beginning of the month, we flagged the warning signs here. In hindsight, I should have been even more cautious.Shares were still OK despite that lower low (orange arrow) but then it notched a lower high as well. Once it broke $40.76 to the downside, that was the last-straw sign to bail. Now bouncing off $36, it's been an ugly ride. If trapped bulls are lucky, they'll get a bounce next week that they can unload into. * 3 Chinese Stocks to Buy Now and Hold for the Long Haul Otherwise, use this one as a lesson. When the trend bends, it's no longer your friend.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy that Lost 10% Last Week * Top 7 Dow Jones Stocks of 2019 -- So Far * 5 Service Stocks That Can Win the Trade War -- According to Goldman Sachs Compare Brokers The post 5 Top Stock Trades for Monday: TSLA, BIDU, IQ, DE, MU appeared first on InvestorPlace.
Think what you may of President Trump, but there is an undeniable fact. If you watch the stock market as closely as I do, you would notice that Trump often has impeccable timing to prop up the market. • The chart shows the stock market was falling.
How Trump's Executive Order Affected Tech StocksNational securityUS President Donald Trump has declared yet another national emergency. On Wednesday, Trump signed an executive order saying “foreign adversaries are increasingly creating and
U.S. tech giants are lobbying for the green card process to be reformed, and President Donald Trump has a plan to overhaul it.