Market Talk
Well, Micron Technology (MU) did not disappoint Wall Street on the memory business, essentially beating expectations across the board—sales, earnings and future guidance—as demand for memory used in expanding AI data center buildouts continues to grow. Today's market response is self-evident to any observer.
Several stocks are rebounding from the previous day's swoon, but not all. In afternoon trading, both NVDA and INTC remain challenged. While much of the market is responding to Micron's blowout quarter, one wonders why certain stocks are not participating. Intel, despite all the attention surrounding its reported arrangement with Apple, remains under pressure. Sometimes the market has a different opinion than the headlines.
Sometimes a market whipsaw and subsequent bounce causes retail investors to reconsider their positions. Some decide to trim shares from a heavy position that has grown beyond "some" and harvest a gain. Others may cut a loss and move to the sidelines. Volatility can do that—it creates dry powder.
Sometimes that cash is redeployed after determining a particular sector has become dead money, at least for the time being. Gold and silver miners come to mind in that sense, for now. Things do change. The odds may also be increasing that the Federal Reserve could take a firmer stance under a new Chairman, Kevin Warsh. Some are comparing his tone to that of the late Alan Greenspan, who served from 1987 to 2006. Greenspan famously coined the phrase "irrational exuberance" before taking much of it out of the hides of bullish traders.
With today's rebound in several stocks, one has to wonder. If MU can surge 17% in a single day after reporting EPS of $25.11, handily beating expectations of about $20.00 per share, what comes next? This earnings beat is roughly double what Micron reported a year ago. Yet, at this time last year, MU traded below $250 per share and, as of this writing, trades above $1230.
Will MU continue higher on earnings-beat euphoria, or will it fall victim to sell-the-news profit taking, "priced-to-perfection" doubters, and broader market headwinds from war and inflation? Only the market—and time—will answer.
For now, a company like GFS, producing semiconductors here in the U.S. and abroad, remains a good stock to watch in this observer's view. The company continues expanding into power chips, RF technologies, silicon photonics to reduce copper interconnects, and quantum computing while supplying semiconductors used in the electronics of virtually everything.
Things change fast. Stay watchful.
- Jones Report
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More later so ....Stay tuned, if you dare!
For now, we close by noting that any view on the market and stocks on any particular day may change in the days to come. That is why we watch and see how our views match up with reality. Looking ahead a few months may be a way to do things - but thinking too deeply about world events and the recent alliances forming, can make projecting ahead a dicey endeavor.
All in all - we use the word maybe "some", not "too much" and play it accordingly. Never get arrogant in our notions because things do change - and individual stocks are subject to many factors outside our control. So, we try to -stay aware.
With all the above caveats and attempted prognostications, I will close this post. Stay tuned for more opining on the market and stocks to watch.
ALL in my humble opinion, scroll down and read more. This site does NOT make Buy / Sell recommendations.
