U.S. Markets
U.S. stocks were in the green on Tuesday, with consumer confidence for June up to 98.1 this month from a revised 85.9 in May. The Dow Jones Industrial Average gained 0.35% to 25,684, the S&P 500 index rose 0.93% to 3,081 and the Nasdaq Composite Index climbed 1.32% to 10,004.
Gainers
- Freeport-McMoRan Inc. (FCX, Financial) +4.5%
- Conagra Brands Inc. (CAG, Financial) +3.4%
- Newmont Corp. (NEM, Financial) +3.4%
- Invesco Ltd. (IVZ, Financial) +2.7%
- Cooper Companies Inc. (COO, Financial) +2.1%
Losers
- Boeing Co. (BA, Financial)​ -5.86%
- Coty Inc. (COTY, Financial)​ -5.27%
- HollyFrontier Corp. (HFC, Financial) -1.51%
- Alaska Air Group Inc. (ALK, Financial) -2.33%
- Under Armour Inc. (UA, Financial) -2.14%
- Carnival Corp. (CCL, Financial) -1.76%
Global Markets
The main European stock markets traded mostly lower. The U.K.'s FTSE 100 fell 0.86%, France's CAC 40 retreated 0.34%, Germany's Dax was up 0.52% and Spain's Ibex 35 slid 0.68%.
In Asia, Japan's Nikkei 225 gained 1.33%, India’s BSE Sensex fell 0.13%, Hong Kong's Hang Seng gained 0.52% and China's Shanghai Composite was up 0.78%.
Micron Technology releases earnings report
Shares of Micron Technology Inc. (MU, Financial) jumped more than 5% on Tuesday morning after the company announced third-quarter results on Monday evening. It posted a gain of 82 cents per share, beating analysts’ estimates by 6 cents. Revenue of $5.44 billion grew 13.6% year over year, but fell $130 million short of expectations.
CEO Sanjay Mehrotra had the following to say:
“Micron’s exceptional execution in the fiscal third quarter drove strong sequential revenue and EPS growth, despite challenges in the macro environment … We are ramping the industry’s most advanced DRAM technology into production and have delivered more than 75% of our NAND volume as high-value solutions, supported by record SSD revenue in the quarter. Our portfolio momentum positions us exceedingly well to leverage the long-term growth across our end markets.”
By segment, DRAM revenue grew 5.6% year over year and 16.3% sequentially to $3.59 billion, representing almost two-thirds of total sales. NAND sales increasaed 50.8% from the prior-year quarter and 10% quarter over quarter to $1.67 billion, representing 31% of the total top line.
Looking at cash generation, the company generates operating cash flow of $2.02 billion versus $2.00 billion for the previous quarter and $2.71 billion for the same quarter of 2019.
Looking ahead to the fourth quarter of fiscal 2020, the company expects revenue to be between $5.75 billion and $6.25 billion, with a gross margin of around 34.5%.
Hedge funds were active during the quarter ended March 31. Philippe Laffont (Trades, Portfolio) increased his stake by 10,913% to 1,005,000 shares. Donald Smith (Trades, Portfolio) reduced his position more than 6.4% to 1,869,962 shares, while Ray Dalio (Trades, Portfolio) sold out of the stock.
Disclosure: The author holds no positions in any stocks mentioned.
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