{"id":2712,"date":"2023-03-29T10:04:19","date_gmt":"2023-03-29T15:04:19","guid":{"rendered":"https:\/\/embarrdowns.com\/stock-market-update-micron-lululemon-paychex-and-federal-reserve-expectations\/"},"modified":"2023-03-29T10:04:20","modified_gmt":"2023-03-29T15:04:20","slug":"stock-market-update-micron-lululemon-paychex-and-federal-reserve-expectations","status":"publish","type":"post","link":"https:\/\/embarrdowns.com\/stock-market-update-micron-lululemon-paychex-and-federal-reserve-expectations\/","title":{"rendered":"Stock Market Update: Micron, Lululemon, Paychex, and Federal Reserve Expectations"},"content":{"rendered":"

Semiconductor maker Micron Technology has seen its stock decline by almost 22% over the past year, but it has experienced a rollercoaster ride in that time, with three peaks and valleys.[0]<\/a><\/sup> The latest valley was not as deep as the first two, and the recovery started two weeks ago is nearing the height of its latest peak.[0]<\/a><\/sup> A strong report after markets close on 27 March could push the shares higher.[0]<\/a><\/sup> Investors are looking for a ray of hope in Micron’s outlook, indicating a year that exceeds expectations.[0]<\/a><\/sup> Micron trades at 52.1 times estimated 2024 EPS of $1.17 and 14.2 times estimated 2025 earnings of $4.31 per share.[0]<\/a><\/sup> Micron offers an annual dividend of $0.46, resulting in a yield of 0.75%. Additionally, the stock has fluctuated between $48.43 and $86.24 within the past 52 weeks.[0]<\/a><\/sup> The performance for the last 12 months resulted in a negative return of 21.2%.[0]<\/a><\/sup> Micron failed to meet the low expectations of Wall Street for its fiscal second quarter due to the challenges posed by a cyclical industry downturn in demand.[1]<\/a><\/sup> However, the stock climbed more than 4% in morning trading on comments that the worst might be over for Micron.[1]<\/a><\/sup><\/p>\n

Lululemon Athletica, the athleisure clothing retailer, reported better-than-expected earnings late on 26 March and forecast annual sales and profit above expectations on resilient demand and an easing inventory glut. Its shares surged more than 16% before the 27 March open after posting a strong holiday quarter and sharing upbeat guidance for the current fiscal year. The company reported adjusted earnings of $4.40 a share on $2.77bn in revenue and said same-store sales climbed by 27%.[2]<\/a><\/sup> Following the news, Citigroup raised the stock to a “buy” rating from a “neutral” rating, accompanied by 13 other analysts who increased their price targets.[3]<\/a><\/sup> Should these gains hold, Lululemon will gap into positive territory since the start of the year.[3]<\/a><\/sup><\/p>\n

Paychex, the country\u2019s second-largest integrated human resources outsourcer, reports quarterly results on 28 March.[0]<\/a><\/sup> Its stock has lost nearly 15% from its share price over the past 12 months, including a decline of 5.8% so far in 2023.[0]<\/a><\/sup> Since the August 2018 quarter, Paychex has missed EPS estimates only once and missed sales estimates only twice.[0]<\/a><\/sup><\/p>\n

There is almost a 50-50 split among investors regarding the actions that the Federal Reserve may take in the future.[4]<\/a><\/sup> A little more than half of futures traders are betting on a pause at the Fed’s meeting in May, while just under half believe another quarter of a percentage point hike is in store.[4]<\/a><\/sup> The economy is predicted to slow down due to pressure on the banking system, which is anticipated to cause a reduction in credit, without any intervention from the Fed.[4]<\/a><\/sup> However, the central bank is determined to lower inflation back to its target of 2%, but it has not yet achieved this goal.[4]<\/a><\/sup> As per Investing.com’s Fed Rate Monitor Tool, there is a strong market sentiment that the Federal Reserve will halt its monetary tightening cycle in May, with an 83% probability of no action.[5]<\/a><\/sup> Several rate cuts have been factored in by traders, with the aim of bringing the funds rate to approximately 3.9% by the end of the year.[5]<\/a><\/sup> <\/p>\n

In extended deals, Lululemon Athletica and Paychex each announced better-than-expected results. Traders are awaiting the latest pending home sales data as well as testimony from the Federal Reserve\u2019s Vice Chair of Supervision, Michael Barr.[6]<\/a><\/sup><\/p>\n

0. <\/span>“Earnings Previews: Lululemon, Micron, Paychex” 24\/7 Wall St., 27 Mar. 2023, https:\/\/247wallst.com\/investing\/2023\/03\/27\/earnings-previews-lululemon-micron-paychex\/<\/a><\/a><\/p>\n

1. <\/span>“Dow Jones Rallies 250 Points; Lululemon Soars 14% On Strong Earnings Results” Investor’s Business Daily, 29 Mar. 2023, https:\/\/www.investors.com\/market-trend\/stock-market-today\/dow-jones-futures-rally-lululemon-soars-on-strong-earnings-results\/<\/a><\/a><\/p>\n

2. <\/span>“Stocks making the biggest moves premarket: Lululemon, Paychex, Micron Technology and more” CNBC, 29 Mar. 2023, https:\/\/www.cnbc.com\/2023\/03\/29\/stocks-making-biggest-moves-premarket-lulu-payx-mu.html<\/a><\/a><\/p>\n

3. <\/span>“Rates Pull Back, Push Stock Futures Higher” Schaeffers Research, 29 Mar. 2023, https:\/\/www.schaeffersresearch.com\/content\/ezines\/2023\/03\/29\/rates-pull-back-push-stock-futures-higher<\/a><\/a><\/p>\n

4. <\/span>“Micron, Lululemon, Walgreens Boots Alliance: 3 things to watch By Investing.com” Investing.com Canada, 27 Mar. 2023, https:\/\/ca.investing.com\/news\/stock-market-news\/micron-lululemon-walgreens-boots-alliance-3-things-to-watch-2945617<\/a><\/a><\/p>\n

5. <\/span>“1 Stock to Buy, 1 Stock to Sell This Week: Lululemon, Walgreens” Investing.com, 26 Mar. 2023, https:\/\/www.investing.com\/analysis\/1-stock-to-buy-1-stock-to-sell-this-week-lululemon-walgreens-200636616<\/a><\/a><\/p>\n

6. <\/span>“Dow futures tick higher, Lululemon pops 12.3% after earnings By Investing.com” Investing.com Canada, 28 Mar. 2023, https:\/\/ca.investing.com\/news\/stock-market-news\/dow-futures-tick-higher-lululemon-pops-123-after-earnings-2947349<\/a><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Semiconductor maker Micron Technology has seen its stock decline by almost 22% over the past year, but it has experienced a rollercoaster ride in that time, with three peaks and valleys.[0]<\/a><\/sup> The latest valley was not as deep as the first two, and the recovery started two weeks ago is nearing the height of its latest peak.[0]<\/a><\/sup> A strong report after markets close on 27 March could push the shares higher.[0]<\/a><\/sup> Investors are looking for a ray of hope in Micron’s outlook, indicating a year that exceeds expectations.[0]<\/a><\/sup> Micron trades at 52.1 times estimated 2024 EPS of $1.17 and 14.2 times estimated 2025 earnings of $4.31 per share.[0]<\/a><\/sup> Micron offers an annual dividend of $0.46, resulting in a yield of 0.75%. Additionally, the stock has fluctuated between $48.43 and $86.24 within the past 52 weeks.[0]<\/a><\/sup> The performance for the last 12 months resulted in a negative return of 21.2%.[0]<\/a><\/sup> Micron failed to meet the low expectations of Wall Street for its fiscal second quarter due to the challenges posed by a cyclical industry downturn in demand.[1]<\/a><\/sup> However, the stock climbed more than 4% in morning trading on comments that the worst might be over for Micron.[1]<\/a><\/sup><\/p>\n

Lululemon Athletica, the athleisure clothing retailer, reported better-than-expected earnings late on 26 March and forecast annual sales and profit above expectations on resilient demand and an easing inventory glut. Its shares surged more than 16% before the 27 March open after posting a strong holiday quarter and sharing upbeat guidance for the current fiscal year. The company reported adjusted earnings of $4.40 a share on $2.77bn in revenue and said same-store sales climbed by 27%.[2]<\/a><\/sup> Following the news, Citigroup raised the stock to a “buy” rating from a “neutral” rating, accompanied by 13 other analysts who increased their price targets.[3]<\/a><\/sup> Should these gains hold, Lululemon will gap into positive territory since the start of the year.[3]<\/a><\/sup><\/p>\n

Paychex, the country\u2019s second-largest integrated human resources outsourcer, reports quarterly results on 28 March.[0]<\/a><\/sup> Its stock has lost nearly 15% from its share price over the past 12 months, including a decline of 5.8% so far in 2023.[0]<\/a><\/sup> Since the August 2018 quarter, Paychex has missed EPS estimates only once and missed sales estimates only twice.[0]<\/a><\/sup><\/p>\n

There is almost a 50-50 split among investors regarding the actions that the Federal Reserve may take in the future.[4]<\/a><\/sup> A little more than half of futures traders are betting on a pause at the Fed’s meeting in May, while just under half believe another quarter of a percentage point hike is in store.[4]<\/a><\/sup> The economy is predicted to slow down due to pressure on the banking system, which is anticipated to cause a reduction in credit, without any intervention from the Fed.[4]<\/a><\/sup> However, the central bank is determined to lower inflation back to its target of 2%, but it has not yet achieved this goal.[4]<\/a><\/sup> As per Investing.com’s Fed Rate Monitor Tool, there is a strong market sentiment that the Federal Reserve will halt its monetary tightening cycle in May, with an 83% probability of no action.[5]<\/a><\/sup> Several rate cuts have been factored in by traders, with the aim of bringing the funds rate to approximately 3.9% by the end of the year.[5]<\/a><\/sup> <\/p>\n

In extended deals, Lululemon Athletica and Paychex each announced better-than-expected results. Traders are awaiting the latest pending home sales data as well as testimony from the Federal Reserve\u2019s Vice Chair of Supervision, Michael Barr.[6]<\/a><\/sup><\/p>\n

0. <\/span>“Earnings Previews: Lululemon, Micron, Paychex” 24\/7 Wall St., 27 Mar. 2023, https:\/\/247wallst.com\/investing\/2023\/03\/27\/earnings-previews-lululemon-micron-paychex\/<\/a><\/a><\/p>\n

1. <\/span>“Dow Jones Rallies 250 Points; Lululemon Soars 14% On Strong Earnings Results” Investor’s Business Daily, 29 Mar. 2023, https:\/\/www.investors.com\/market-trend\/stock-market-today\/dow-jones-futures-rally-lululemon-soars-on-strong-earnings-results\/<\/a><\/a><\/p>\n

2. <\/span>“Stocks making the biggest moves premarket: Lululemon, Paychex, Micron Technology and more” CNBC, 29 Mar. 2023, https:\/\/www.cnbc.com\/2023\/03\/29\/stocks-making-biggest-moves-premarket-lulu-payx-mu.html<\/a><\/a><\/p>\n

3. <\/span>“Rates Pull Back, Push Stock Futures Higher” Schaeffers Research, 29 Mar. 2023, https:\/\/www.schaeffersresearch.com\/content\/ezines\/2023\/03\/29\/rates-pull-back-push-stock-futures-higher<\/a><\/a><\/p>\n

4. <\/span>“Micron, Lululemon, Walgreens Boots Alliance: 3 things to watch By Investing.com” Investing.com Canada, 27 Mar. 2023, https:\/\/ca.investing.com\/news\/stock-market-news\/micron-lululemon-walgreens-boots-alliance-3-things-to-watch-2945617<\/a><\/a><\/p>\n

5. <\/span>“1 Stock to Buy, 1 Stock to Sell This Week: Lululemon, Walgreens” Investing.com, 26 Mar. 2023, https:\/\/www.investing.com\/analysis\/1-stock-to-buy-1-stock-to-sell-this-week-lululemon-walgreens-200636616<\/a><\/a><\/p>\n

6. <\/span>“Dow futures tick higher, Lululemon pops 12.3% after earnings By Investing.com” Investing.com Canada, 28 Mar. 2023, https:\/\/ca.investing.com\/news\/stock-market-news\/dow-futures-tick-higher-lululemon-pops-123-after-earnings-2947349<\/a><\/a><\/p>\n","protected":false},"author":3,"featured_media":2711,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"_links":{"self":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/2712"}],"collection":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/comments?post=2712"}],"version-history":[{"count":0,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/2712\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media\/2711"}],"wp:attachment":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media?parent=2712"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/categories?post=2712"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/tags?post=2712"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}