Quick Summary
- Micron (MU) declined approximately 5% even after surpassing earnings forecasts and boosting its dividend by 30%, with profit-taking following a remarkable 348% yearly gain
- Five Below jumped roughly 8% following a 15% increase in comparable store sales and optimistic 2026 projections
- Alibaba’s American depositary receipts slipped 4.5% following a significant profit decline and revenue missing expectations
- Newmont led S&P 500 premarket losses with a 5.4% drop as gold retreated on Federal Reserve rate commentary
- dLocal climbed approximately 7% after exceeding Q4 projections and unveiling a $300M stock repurchase initiative
Equity futures dipped Thursday morning as the Dow Jones Industrial Average reached a 2026 low point. Inflation worries resurfaced after elevated producer price data, while the Federal Reserve maintained its current interest rate policy.
Micron Technology shares declined roughly 5% during premarket hours, despite the memory semiconductor manufacturer exceeding earnings projections for its second fiscal quarter. Additionally, the company increased its quarterly dividend by 30% to $0.15 per share.
Micron projected adjusted earnings per share between $18.75 and $19.55 for the upcoming quarter, with revenue anticipated in the $32.75 billion to $34.25 billion range. Both metrics significantly exceeded analyst consensus estimates.
Market observers attribute the downturn to profit-taking activity. Micron stock had climbed 348% during the previous twelve months, propelled by robust demand for memory chips utilized in artificial intelligence systems.
The selloff extended to related memory semiconductor companies. Sandisk declined 5.5%, while Seagate Technology and Western Digital retreated 1.4% and 2.6%, respectively.
Alibaba’s U.S. depositary shares fell 4.5% after the Chinese online retail powerhouse disclosed a substantial quarterly profit decrease. Sales figures also missed Wall Street projections for the period concluding December 31.
The financial performance indicated that advances in artificial intelligence capabilities couldn’t compensate for challenges facing Alibaba’s primary e-commerce operations.
Newmont Slides as Gold Retreats on Rate Policy Signals
Newmont emerged as the S&P 500’s weakest performer in premarket trading, tumbling 5.4%. Gold commodity prices retreated after Federal Reserve Chairman Jerome Powell indicated the central bank remained vigilant about inflationary pressures linked to tensions involving Iran.
Elevated interest rate environments typically diminish gold’s attractiveness relative to bonds and other yield-generating investments.
Five Below and dLocal Post Strong Gains
Five Below stood out positively, advancing nearly 8% after announcing a 15.3% surge in comparable store sales during the fourth quarter. Total revenue increased 24.5% year-over-year to reach $1.73 billion.
The discount retail chain projected first-quarter revenue between $1.18 billion and $1.20 billion, anticipating comparable sales growth of 14% to 16%. Management also announced intentions to launch approximately 150 additional locations throughout 2026.
dLocal shares appreciated about 7% after the Uruguay-based payment processing firm surpassed expectations for revenue, gross profit, and operating income in the fourth quarter. The company simultaneously revealed a $300 million share buyback authorization.
dLocal forecast total payment volume expansion of 50% to 60% for 2026, substantially exceeding analyst predictions.
Drone manufacturer Swarmer remained unchanged after Wednesday’s 77% surge. The stock had skyrocketed 520% during its Tuesday debut following its initial public offering.
Canadian Solar plummeted 13% after providing first-quarter revenue guidance of $900 million to $1.1 billion, significantly below the $1.55 billion analyst consensus estimate.
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