Key Takeaways
- U.S. equities were mixed at midday as worries about possible government interventions in the chip sector sent the S&P 500 and Nasdaq lower.
- Spirit Airlines warned that its second quarter loss and revenue would be worse than it had anticipated because non-ticket revenue came up short of expectations.
- VF Corp. got a boost after it sold its streetwear brand, Supreme, to France’s EssilorLuxottica.
The S&P 500 and Nasdaq were sinking around midday on worries that possible government interventions could hurt the semiconductor industry. The Dow was higher.
Shares of Advanced Micro Devices (AMD) and Nvidia (NVDA), New York Registry Shares of ASML Holding (ASML), and American Depositary Receipts (ADRs) of TSMC (TSM) tumbled on a report that the Biden administration may take stronger action to block chip technology shipped to China, as well as comments from Republican presidential nominee Donald Trump about the U.S. defense of Taiwan.
Spirit Airlines (SAVE) shares sank when the discount carrier warned of a larger loss and lower revenue in the second quarter because of non-ticket revenue that was lower than expected. Shares of Five Below (FIVE) plunged after the low-cost retailer slashed its outlook and announced that CEO Joel Anderson was stepping down.
VF Corp. (VFC) shares climbed after the clothing company sold its Supreme streetwear brand to French eyeglass firm EssilorLuxottica for $1.5 billion in cash. Shares of Prologis (PLD) gained when the world’s largest industrial real estate company boosted its outlook as it sees demand improving. U.S. Bancorp (USB) shares advanced after the bank reported higher deposits and credit card loans.
Oil futures rose. The price of gold and yield on the 10-year Treasury note were little changed. The U.S. dollar slipped against the euro, pound, and yen. Trading in most major cryptocurrencies was mixed, with bitcoin holding a bit above $64,000.
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