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Investing.com — The Dow staged a late-day revival Friday, making a positive start to the third quarter underpinned by a jump in consumer stocks offsetting a Micron-fueled slip in chip stocks.
The Dow Jones Industrial Average gained 1%, or 321 points, the Nasdaq was up 0.9% and the S&P 500 gained 1.1%.
Consumer stocks jumped 2% helping the broader market claw its way out of negative territory intraday after homebuilders surged as investors price in a less aggressive Fed rate hike in July.
PulteGroup Inc (NYSE:PHM), Lennar Corporation (NYSE:LEN), and DR Horton Inc (NYSE:DHI) were up sharply.
Tech, meanwhile, underperformed other sectors as weaker-than-expected guidance from Micron soured sentiment on chip stocks.
Micron Technology (NASDAQ:MU) fell 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.
Advanced Micro Devices (NASDAQ:AMD), NVIDIA (NASDAQ:NVDA), and Texas Instruments Incorporated (NASDAQ:TXN) fell more than 3%.
Big tech ended well off session lows after a more than 1% gain in Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) offset weakness in Alphabet (NASDAQ:GOOGL) and Meta Platforms (NASDAQ:META).
The bond market, meanwhile, was also dominating investor attention as Treasury yields continued to slip after data showed a further deterioration in the economy.
Manufacturing activity in May fell to a reading of 53.0, missing the consensus estimate of 54.9, marking the first decline since September.
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 19% lower.
Boeing (NYSE:BA) shrugged off earlier losses to end the day 2% higher even as rival Airbus 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 commercial flights in the country.
In other news, General Motors (NYSE:GM) rose more 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.
