TLDR
- Micron dropped ~5% despite beating earnings and raising its dividend 30%, as investors took profits after a 348% one-year run
- Five Below surged ~8% after posting a 15% jump in same-store sales and issuing strong guidance for 2026
- Alibaba’s U.S.-listed shares fell 4.5% after a sharp drop in profit and weaker-than-expected revenue
- Newmont was the S&P 500’s worst premarket performer, down 5.4%, as gold fell on Fed rate signals
- dLocal rose ~7% after beating Q4 estimates and announcing a $300M share buyback program
Stock futures edged lower Thursday morning after the Dow fell to a 2026 low. Inflation concerns returned following hot wholesale data, and the Federal Reserve held interest rates steady.
Micron Technology shares fell around 5% in premarket trading, even though the memory chipmaker beat earnings expectations for its fiscal second quarter. The company also raised its dividend by 30% to $0.15 per share.
Micron guided for next-quarter adjusted earnings per share of $18.75 to $19.55, on revenue of $32.75 billion to $34.25 billion. Both figures came in well above what Wall Street had expected.
Analysts say the sell-off looks like profit-taking. Micron shares had risen 348% over the prior year, driven by strong demand for memory chips used in artificial intelligence applications.
The weakness spread to other memory stocks. Sandisk fell 5.5%, while Seagate Technology and Western Digital dropped 1.4% and 2.6%, respectively.
Alibaba’s U.S.-listed shares dropped 4.5% after the Chinese e-commerce giant reported a sharp drop in quarterly profit. Revenue also came in below analyst estimates for the quarter ended December 31.
The results suggested that gains in artificial intelligence were not enough to offset pressure on Alibaba’s core e-commerce business.
Newmont and Gold Fall on Fed Rate Outlook
Newmont was the worst-performing S&P 500 stock ahead of the opening bell, falling 5.4%. Gold prices pulled back after Fed Chair Jerome Powell said the central bank was not ready to ignore inflation risks tied to the conflict in Iran.
When interest rates stay high, gold tends to lose appeal compared to bonds and other interest-bearing assets.
Five Below and dLocal Buck the Trend
Five Below was a bright spot, rising nearly 8% after reporting a 15.3% jump in comparable store sales for the fourth quarter. Revenue rose 24.5% year over year to $1.73 billion.
The discount retailer guided for first-quarter sales of $1.18 billion to $1.20 billion, with comparable sales growth of 14% to 16%. The company also plans to open around 150 new stores in 2026.
dLocal shares gained about 7% after the Uruguayan payments company beat estimates on revenue, gross profit, and operating income in the fourth quarter. The company also announced a $300 million share repurchase program.
dLocal projected total payment volume growth of 50% to 60% for 2026, well above analyst consensus.
Drone company Swarmer traded flat after a 77% jump Wednesday. Its stock had surged 520% on its debut Tuesday following its IPO.
Canadian Solar fell 13% after guiding for first-quarter revenue of $900 million to $1.1 billion, well below analyst estimates of $1.55 billion.
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