S&P 500, Nasdaq fall as chipmakers withdraw: live updates

Tom Lee, head of research at Fundstrat, told CNBC on Wednesday that he thinks inflation “is going to drop like a rock” and help the stock market rally broaden.

Lee pointed to the auto market in particular, where he sees falling new car prices, as one area where goods inflation can continue to fall.

Lee also downplayed comparisons between the current market and the Internet business boom, saying investor sentiment does not resemble a bubble.

“There was a lot more excitement back then, and a lot more people who didn’t think stocks would ever go down. I think there are a lot of major buyers today,” said Lee on “Squawk Box.”

—Jesse Book

Shares of telehealth platform Hims & Hers Health fell more than 8% Thursday after Hunterbrook Media published a report raising questions about the company’s sale of weight-loss drugs. Hunterbook is affiliated with hedge fund Hunterbrook Capital, which has a short position in Hims & Hers.

The popularity of anti-obesity drugs like Novo Nordisk’s Wegovy and Eli Lilly’s Mounjaro has led to a drug shortage. Hims & Hers exploits a loophole that allows compounded versions of drugs in shortage to be sold. The company said it plans to sell the GLP-1 brand drugs to its customers once supplies become more reliable.

The stock has gained more than 142% since the start of the year, as investors bet that strong demand for weight-loss drugs would drive rapid growth for the company.

Eli Lilly and Novo Nordisks have filed lawsuits against a number of suppliers who sell counterfeit versions of their drugs.

—Christina Cheddar Berk

Gold is up about 0.1% for the week; if the gains continue, the metal would record its second positive week in three.

However, since the start of the month, gold is down 0.5%, in line with its first negative month in four.

Since the start of the year, gold is up 12.6%.

— Hakyung Kim, Gina Francolla

U.S. stocks started Thursday’s trading session flat.

The Dow Jones Industrial Average fell 42 points, or 0.1%. The S&P 500 was slightly lower, while the Nasdaq Composite gained 0.1%.

-Hakyung Kim

Including today’s drop following its poor earnings report, shares of Walgreens Boots Alliance are down 41% since the stock was removed from the Dow in February – just 4 months ago.

This is also on top of the additional 41% decline recorded in the year before they were removed from the index.

In 2 years, the stock lost 70% of its value.

Initial jobless claims fell slightly, demand for big-ticket, durable items was better than expected and economic growth in the first quarter rose slightly, as did inflation for the period, according to economic data released Thursday.

• The Commerce Department’s third and final estimate of first-quarter gross domestic product showed a seasonally adjusted annualized gain of 1.4%. That’s 0.1 percentage points higher than the previous estimate, but in line with the Dow Jones estimate.
• On-chain weighted prices increased 3.1% in the first quarter, up from 3% previously. The personal consumption expenditures price index, which the Federal Reserve considers its preferred inflation indicator, rose 3.4% for all items and 3.7% for the core set, both 0.1 percentage points above the previous estimate.
• Initial unemployment insurance claims for the week ending June 22 totaled 233,000, down 6,000 from the previous week and below the estimate of 235,000, the Labor Department reported. Continuing claims, a week late, reached 1.839 million, the highest level since November 27, 2021.
• New orders for “durable goods,” or durable items such as airplanes, appliances and computers, unexpectedly rose 0.1% in May, below the downwardly revised increase of 0.2% in April, but better than the estimate of a 1% decline, according to the Census Bureau. Excluding defense, new orders were down 0.2% and down 0.1% excluding transport.

—Jeff Cox

Here are the stocks moving the most in premarket trading:

Read the full list of moving stocks here.

—Lisa Kailai Han

Walgreens shares fell more than 8% in premarket trading after the drugstore operator lowered its full-year profit outlook.

“‘We assumed … in the second half of the year that the consumer would get a little stronger,’ but “that’s not the case,” Walgreens CEO Tim Wentworth told CNBC. “The consumer is absolutely stunned by the absolute prices of things, and the fact that some of them aren’t inflating doesn’t really change their resilience to current prices. So we’ve had to be very enthusiastic, particularly in the discretionary areas.”

GSK shares fell more than 1% in premarket trading after the CDC balked at recommending RSV vaccines for adults under 60. The move comes after a 3% decline in the previous session and puts GSK on track for a three-day losing streak.

A series of economic data to be released Thursday includes weekly jobless claims, durable goods orders and pending home sales. Here’s what economists anticipate ahead of the reports.

• Jobless claims for the week ending June 22 are expected to have increased by 240,000, according to economists surveyed by Dow Jones. That’s a slight increase from 238,000 the previous week.
• Durable goods orders, which measure new orders from U.S. manufacturers of durable goods such as machinery or equipment, are expected to have fallen 0.6% in May, according to a Dow Jones consensus estimate. The previous month it had increased by 0.6%.
• Pending home sales, a gauge of housing contract activity, are expected by economists surveyed by Dow Jones to have increased 1% in May. This is up from the 7.7% decline recorded in April.

-Sarah Min

September wheat futures fell to $5.5625 a bushel (60 pounds) on Wednesday, the lowest since April 19, bringing the monthly decline to 17.6%, the worst month since June 2022.

Wheat futures are down 11% so far in 2024.

—Scott Schnipper and Gina Francolla

Here are the stocks that make the biggest moves during extended trading.

• Micron — Shares fell 7% after the chipmaker issued revenue guidance of $7.6 billion for the current quarter, which was in line with LSEG consensus estimates. Furthermore, the company exceeded third quarter expectations in terms of earnings and results.
• Levi Strauss — The jeans maker fell 12% after Levi Strauss reported disappointing quarterly sales, despite consumer enthusiasm for denim.
• AeroVironment — Shares fell 6% even after the unmanned aerial vehicle maker reported fourth-quarter profits and fiscal revenue that beat expectations. AeroVironment reported adjusted earnings of 43 cents, beating the FactSet consensus estimate of 22 cents in earnings per share. Revenue of $197 million also topped the $188.5 million estimate.

-Sarah Min

US S&P 500 futures opened slightly lower on Wednesday evening.

S&P 500 futures fell 0.19%, while Nasdaq 100 futures fell 0.32%. Dow Jones Industrial Average futures fell 73 points, or 0.18%.

-Sarah Min