Investing.com — The S&P 500 wavered between small gains and losses Friday, as investors weighed up a chip-led dip in tech following weaker guidance from chipmaker Micron and stronger consumer stocks as housing stocks jump.
Tech was led lower by a slip in chip stocks as weaker-than-expected guidance from Micron weighed on sentiment.
Micron Technology (NASDAQ:MU) fell more than 3% after the chipmaker guided fiscal fourth-quarter sales below Wall Street estimates on signs of softening demand.
“Micron’s sharply reduced guidance for FQ4 that assumes both bit and ASP (average selling price) declines in DRAM and NAND due to deteriorating end markets in what is typically a seasonally stronger period,” Wedbush said as it cut its price target on the chipmaker’s stock to $85 from $120.
As well as a falling chip stocks, weakness in Alphabet (NASDAQ:GOOGL) and Meta Platforms (NASDAQ:META) also weighed on tech, with the latter reportedly set to trim hiring plans as economic recession fears mount.
A fall in Treasury yields, meanwhile, failed to boost tech after economic data showed a further deterioration in the economy, keeping recession fears front and center.
Manufacturing activity in May fell to a reading of 53.0, missing the consensus estimate of 54.9, marking the first decline since September.
A more than 1% rise in consumer stocks, however, underpinned the broader market, led by homebuilders as investors price in a less aggressive Fed rate hike in July.
Kohl’s (NYSE:KSS) said that Vitamin Shoppe had ended its takeover pursuit of the grocery chain following a weaker retail and financial environment. Its shares are more than 15% lower.
Boeing (NYSE:BA) shrugged off earlier losses to trade 1% higher even as rival Airbus (OTC:EADSY) secured orders for 300 jets from China’s three biggest state-owned airlines at a time when Boeing’s 737 MAX jets are yet to resume to commercial flights in the country.
In other news, General Motors (NYSE:GM) rose less than 1% after reporting a fall in quarterly sales and warning of delays to deliveries as supply-chain issues continue to weigh. The automaker, however, kept its guidance for the year unchanged.