US Stocks to Watch | Chinese ADRs, Micron, Nvidia, Southwest, Costco, and More

Tiger Newspress
26 Sep 2024

These stocks were poised to make moves Thursday:

Micron Technology was rising 15% after the memory-chip reported fiscal fourth-quarter adjusted earnings of $1.18 a share, beating analysts’ estimates of $1.11, as revenue surged 93% from a year earlier to $7.75 billion on “robust AI demand.” Micron CEO Sanjay Mehrotra said artificial-intelligence demand ”drove a strong ramp of our data-center DRAM products and our industry-leading high-bandwidth memory.” Micron said it expects first-quarter revenue of $8.7 billion at the midpoint of its guidance, higher than estimates of $8.3 billion and well more than $4.73 billion in the same period a year earlier.

Shares of other chip makers were rallying after Micron’s report. Intel was up 2.8%, Advanced Micro Devices gained 2.2%, Nvidia rose 2.1%, ASML jumped 4.5%, and Western Digital surged 6.4%.

Chinese ADRs and related ETFs jumped again in premarket trading Thursday. YINN rose 13%; KWEB rose 5%; Alibaba and PDD Holdings rose 6%; JD.com, XPeng, Li Auto, and Bilibili rose 7%; NIO rose 5%; Baidu rose 4%.

Third-quarter adjusted earnings at H.B. Fuller missed Wall Street forecasts and the adhesives maker said it was “impacted by slowing market demand in certain durable goods markets,” leading the company to cut its fiscal-year revenue outlook. The stock fell 9% in after-hours trading Wednesday.

Concentrix tumbled 13% after the global technology and services company reported fiscal third-quarter adjusted earnings of $2.87 a share missing analysts’ expectations of $2.93.

Jefferies Financial reported fiscal third-quarter earnings and revenue that rose from a year earlier but missed Wall Street estimates. The stock declined 3.2%. Revenue in the period rose 42% to $1.68 billion but was below expectations of $1.71 billion. Investment banking revenue surged 39% to $1.62 billion, driven higher by strong performance at its advisory business.

Southwest Airlines’s investor day is Thursday. Chief Operating Officer Andrew Watterson told staff last week in a video message, CNBC reported, that the airline needs to “change our network” as it works back toward profitability. Southwest has been pressured by activist investor Elliott Investment Management, which has pushed for changes at the top, including the ouster of Chief Executive Bob Jordan. The stock was up 0.6% in premarket trading.

Costco rose 0.4% ahead of its fiscal fourth-quarter earnings scheduled for after the closing bell Thursday. Wall Street expects revenue to rise about 1% from a year earlier to $79.9 billion and same-store sales up 5.6%.

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