OPENING CALL

It could be another rough day for chip stocks.

A disappointing forecast from Micron Technology weighed on its shares early Thursday, and pressured other semiconductor shares, including Nvidia, AMD and Intel.

A key question for investors: Might this kickstart a new Nvidia selloff, or can the tech rally get back on track?

In recent trading:

Stocks futures slipped with contracts tied to the Nasdaq-100 leading the declines.

Sweden's central bank kept borrowing costs unchanged, but said it could cut its policy rate two or three times in the second half of the year. The krona slipped against the dollar.

Stock indexes declined across Asia, and the Hang Seng Index fared the worst, with declines in consumer and tech stocks pushing it to a 2.1% decline. Europe's Stoxx 600 was close to flat.

More Premarket Movers

AeroVironment was falling 5.6%. It reported fiscal fourth-quarter earnings and revenue that beat analysts' expectations. The company said it was "on track for nearly 12% top-line growth in fiscal year 2025 with expected revenue of between $790 million and $820 million."

BlackBerry rose 7.2% after the company reported a fiscal first-quarter adjusted loss of 3 cents a share, down from earnings of 6 cents a share a year earlier, but narrower than the loss of 5 cents expected by analysts.

International Paper declined 15% after Brazilian company Suzano said it terminated discussions to acquire the Memphis paper maker.

Levi Strauss reported lower-than-expected quarterly revenue and left its full-year outlook unchanged. Shares were down 15%.

Post Close Movers

Aterian guided for higher-than-expected revenue in the second quarter and named Arturo Rodriguez its CEO following the resignation of Joe Risico as co-CEO. Shares rose 27%.

Casi Pharmaceuticals said it is considering a $40 million offer to sell its business operations in China to Board Chairman and CEO Wei-Wu He. Shares rose 60%.

Recursion Pharmaceuticals said it is planning to sell $200 million of shares in a secondary offering. Shares fell 7.5%.

Watch For:

Durable Goods for May; 3rd estimate GDP for 1Q; Weekly Jobless Claims; Earnings from Walgreens Boots Alliance, McCormick, Nike

Today's Top Headlines/Must Reads:

- You Might Be Buying Your House at the Top of the Market

- Fed Officials Are Talking About 3 Scenarios. Here's What They Mean for Rates.

- Nike Is on the Brink of Recovery. Today's Earnings Will Test That.

MARKET WRAPS

Forex:

The dollar edged lower after hitting its highest level in two months against a basket of currencies, and UniCredit Research said upcoming economic data, including durable goods orders, could help temper its gains.

"A possible drop in durable goods orders, which are scheduled to be released in the U.S. this afternoon, might put a lid on an additional appreciation of the greenback [dollar]."

The Japanese yen edged higher after dropping to its weakest against the dollar since 1986 on Wednesday, buoyed by strong Japanese retail sales data, month-end dollar sales by Japanese exporters and prospects of Japanese authorities intervening to prop up the currency, UniCredit Research said.

Bonds:

Treasurys are facing headwinds from supply, while investors remain nervous ahead of the release of PCE data on Friday, Commerzbank Research said.

"Most recently, UST headwind[s] were at play, with significant Treasury supply yesterday and today and investors likely becoming nervous about tomorrow's PCE print after Canadian and Australian inflation surprised to the upside earlier this week."

Energy:

Oil prices ticked lower in early European trade on concerns over global demand following a build in U.S. inventories and lingering uncertainties around the path of interest-rate cuts in the world's top consumer.

The latest EIA data was bearish for prices, pointing to weak gasoline demand despite the summer travel season. Plus, "volatility in equity markets contributed to a rollercoaster ride in crude oil markets while a stronger USD added to the bearish picture," ANZ said.

Metals:

Gold prices edged lower as U.S. inflation data looms, while copper remained under pressure as a stronger dollar and concerns over demand in China weighed on sentiment.

China's industrial profit rose at a much slower pace in May, pointing to persisting economic headwinds at a time when the country is also in the midst of a dispute with the European Union over the bloc's tariffs on imports of Chinese-made electric vehicles.


TODAY'S TOP HEADLINES


H&M Shares Plunge on Worsening Outlook

Hennes & Mauritz's shares plunged after it made a weak start to its third quarter and warned that its performance would be hurt by rising raw material costs and adverse currency moves.

H&M stock was recently down 13% at SEK169.


GSK stock falls more at London open following RSV vaccination news

GSK's London-listed shares fell even more swiftly than their ADRs to news that advisers to the Centers for Disease Control and Prevention shifted their recommendations for who should be vaccinated against respiratory syncytial virus.

GSK's London-listed shares UK:GSK were trading at GBP14.91 in early action Thursday, a decline of 7%, and worse than the GBP15.44 implied by the U.S. close.


Levi's wants to sell a 'denim lifestyle' directly to consumers. Wall Street needs more convincing.

Shares of Levi Strauss & Co. sank after hours on Wednesday, after the iconic jeans maker grew quarterly sales but still missed Wall Street's estimates, and said it expected higher costs as it tries to sell more clothing through its own physical and online stores.

Levi Strauss LEVI offered that outlook as its executives try to push new types of denim, tops and dresses, along with what Chief Executive Michelle Gass - several times on Wednesday - called a "denim lifestyle." But the company has cut staff and costs, following caution from inflation-weary consumers and retailers, which have tried to keep their product selections leaner as a result.


Bill Gates Has Billions in Green Startups. He Shares the Early Winners and Long Shots.

It is the blessing that can help determine a climate startup's fate: backing from Bill Gates, one of the biggest investors in efforts to transform the world's energy use.

Since 2015, Breakthrough Energy, the climate-investment firm founded by Gates, has lavished $2.2 billion on more than 160 startups and other initiatives, seeking both returns for investors and emissions reductions. He has also made investments separately outside the firm.


Beijing Falls in Line With Other Top Chinese Cities to Help Home Buyers

Beijing became the last major Chinese city to trim mortgage rates and down-payment requirements for home buyers, part of growing efforts across the country to resolve a long-running property crisis.

Authorities in China's capital said late Wednesday that they will reduce minimum down-payment ratios for first-time buyers to 20% from 30% and for second homes to 30% and 35% from 40% and 50%, respectively, depending on location. They also lowered the commercial mortgage rate by up to 55 basis points.


The Fed's Higher for Longer Policy Is Breaking the Yen

The Japanese yen is at a nearly four-decade low versus the U.S. dollar, and there's no sign of relief for the East Asian currency. It's a product of divergent monetary policy between the Bank of Japan and its developed-market peers-particularly the Federal Reserve.

The yen weakened to nearly 161 versus the dollar on Wednesday, a level last seen in 1986 after a 14% depreciation in 2024 alone. It was holding at 160.47 early Thursday. That's a level at which the BOJ has intervened to support the currency in the past, by selling foreign-currency reserves, but there was no sign of an intervention at the moment.


Biden-Trump Debate Takes Shape as Clash With 'No Love Lost'

President Biden and former President Donald Trump prepared for a high-stakes clash in the first presidential debate of the 2024 campaign on Thursday, seeking to persuade a skeptical nation about their abilities to serve a second term and looking to shake up a tightly contested race that has grown increasingly bitter.

The debate at a CNN studio in Atlanta was expected to put a spotlight on their advanced ages. Biden is the oldest U.S. president at 81, and Trump, 78, was among the oldest to serve. Their competing visions on the economy and democracy will also be in focus.


Biden Administration Scrambles to Head Off Wider War Between Israel and Hezbollah

WASHINGTON-A Biden administration push to curtail worsening border clashes between Israel and Hezbollah in southern Lebanon is running into major headwinds because of the difficulty the U.S. faces in arranging a cease-fire in Gaza, U.S. officials say.

The connections between the two fronts underscore the diplomatic conundrum facing the White House as it seeks to prevent a full-scale war that could draw in Iran and broaden the fighting well beyond Gaza.


Write to ina.kreutz@wsj.com

TODAY IN CANADA

Earnings:

TECSYS 4Q

Economic Calendar (ET):

0830 Apr Payroll employment, earnings and hours, and job vacancies

0830 Jun Principal field crop areas

Stocks to Watch:

Clairvest Group 4Q EPS C$1.78; 4Q Net C$26.1M

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NovaGold 2Q Loss/Shr 4c; Determined to Advance Donlin Gold to an Updated Feasibility Decision


Expected Major Events for Thursday

00:30/JPN: May Detailed Import & Export Statistics

08:00/ITA: Jun Consumer Confidence Survey

08:00/ITA: Jun Business Confidence Survey

08:30/UK: May Capital issuance statistics

09:00/ITA: May PPI

12:30/US: May Advance Report on Durable Goods

12:30/US: May Advance Economic Indicators Report

12:30/CAN: Jun Principal field crop areas

12:30/CAN: Apr Payroll employment, earnings and hours, and job vacancies

12:30/US: 1Q Revised Corporate Profits

12:30/US: 1Q 3rd estimate GDP

12:30/US: 06/22 Unemployment Insurance Weekly Claims Report - Initial Claims

(MORE TO FOLLOW) Dow Jones Newswires

06-27-24 0624ET