Micron Stock Pops as Sales and Guidance Impress

Major U.S. equities indexes pushed higher as the latest estimates from the Bureau of Economic Analysis showed that U.S. gross domestic product (GDP) growth slightly outpaced expectations in the second quarter of 2024.

The S&P 500 added 0.4% on Thursday, printing a new all-time closing high. The Dow gained 0.6%, ending just below the level of Tuesday’s record close. The Nasdaq was also up 0.6%, boosted by strength in the tech sector and solid gains from semiconductor stocks.

Micron Technology (MU) shares secured Thursday’s top performance in the S&P 500, skyrocketing 14.7% after the memory chip maker beat revenue estimates and provided higher-than-expected sales guidance for the current quarter. The Nvidia (NVDA) partner nearly doubled its revenue from the year-ago period, with strong artificial intelligence (AI) demand helping underpin the strong sales growth. The firm’s CEO said Micron’s competitive positioning has reached its highest point in company history.

Circuit board manufacturer Jabil (JBL) also reported strong quarterly results, topping sales and profit estimates for its fiscal fourth quarter. Like Micron, Jabil benefitted from strong AI demand during the quarter. The electronics manufacturer and Apple (AAPL) supplier also approved a $1 billion share repurchase plan and announced several cost-cutting initiatives. Jabil shares jumped 11.7% on Thursday.

Shares of beauty products company Estée Lauder (EL) popped 10.0% higher following the announcement of an economic stimulus in China. The makeup maker generates around a third of its revenue from the Asia/Pacific region. However, in its most recent earnings report, Estée Lauder pointed to softness in the prestige beauty market in China as a key factor behind its 2% year-over-year decline in organic net sales. Any improvement in consumer sentiment that results from the stimulus could flow through to increased consumer spending and help drive a sales recovery for Estée Lauder in the key market.

Super Micro Computer (SMCI) shares plunged 12.2%, falling further than any other S&P 500 stock on Thursday. According to a report in The Wall Street Journal, the U.S. Department of Justice (DOJ) has launched an investigation into the server and data storage provider’s accounting practices. News of the DOJ probe follows a report published last month by activist short-selling firm Hindenburg Research alleging that Supermicro had engaged in accounting manipulation.

Crude oil futures prices fell more than 3% amid reports that Saudi Arabia and other major producers are prepared to increase oil output in December, pressuring oil and gas stocks. Diamondback Energy (FANG) stock slid 6.5%, with news that insiders sold more than $2.3 billion worth of in the exploration and production company.

Softness in natural gas prices also dragged on companies in that part of the energy sector. Shares of natural gas players Targa Resources (TRGP) and Oneok (OKE) were down around 5.9%.