Closing Bell: Micron Rides to the Rescue, Oil Climbs as Strait of Hormuz Tensions Continue

Equities were modestly up, aided by earnings from Micron Technology (MU) that pushed the memory chipmaker’s shares up nearly 16%.  

The tech-heavy Nasdaq-100 (NDX) finished the day up 0.75%, while the S&P 500 (SPX) was flat. In the commodities space, WTI Crude Oil futures (/CL) were up more than 2% to near $72, while gold futures (/GC) rose +0.89% to finish just shy of 4,009. U.S. dollar futures fell -0.23%. 

Three things to watch from today’s market:  

• Tech Turnaround as Micron Shares Spike: The tech sector made a major about-face after sharp declines Wednesday after Micron’s blowout earnings. This was bolstered by the semiconductor group, with other chip names like Sandisk (SNDK), Applied Materials (AMAT), and Teradyne (TER) among the S&P 500 leaders. The overall memory supply crunch shows few signs of abating: Apple (AAPL) hiked prices for MacBooks and iPads by $100-$300 and $200, respectively, citing rising component costs. The iPhone maker’s shares fell -6%. Meanwhile, shares of Xbox-maker Microsoft (MSFT) slumped -3.5%. It said its signature video gaming console will see higher prices for the same reason with the entry-level Xbox Series X starting at about $750. 
• Oil Jumps After on Iran Strike in Strait of Hormuz: Iran struck a cargo vessel in the Strait of Hormuz Thursday near the Oman coast, damaging the vessel without human injury, according to US and UK news reports. Earlier in the day, it was reported Iranian authorities warned oil tankers to use approved routes and maintain proper credentials in the Strait of Hormuz. About 20% of the world’s oil products flow through this maritime choke point, so any disruption could be a notable development.  
• Russell Rebalancing Could Spell Volatility Friday: FTSE Russell will complete its semi-annual rebalancing of indices after Friday’s close, with expectations that 237 companies will be added to the small-cap focused Russell 2000. Additionally, indices will be reweighted based on market capitalization as part of a now semi-annual “reconstitution” process. Magnificent 7 names will carry increased weight in Russell indices, having increased in market capitalization since the last reconstitution, according to a London Stock Exchange Group (LSEG) report. It notes reconstitution day ranks among the highest trading volume days of the year on U.S. stock exchanges. 

Economic Events/Data Friday, June 26 (ET):  

• 08:30 AM: International Trade in Goods (Advance) 
• 08:30 AM: Retail Inventories (Advance) 
• 08:30 AM: Wholesale Inventories (Advance) 
• 10:00 AM: Consumer Sentiment 
• 01:00 PM: Baker Hughes Rig Count 

Earnings Calendar Friday, June 26 (ET): 

Premarket  

• Apogee Enterprises (APOG) 

Postmarket 

• n/a

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