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Walgreens plunges on 2024 profit forecast cut, store

closures

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Levi Strauss drops after revenue misses estimates

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International Paper ( IP ) slumps after Suzano ends buyout talk

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Indexes up: Dow 0.03%, S&P 0.07%, Nasdaq 0.22%

(Updated at 9:59 a.m. ET/1359 GMT)

By Ankika Biswas and Lisa Pauline Mattackal

June 27 (Reuters) -

The Nasdaq rose on Thursday while other indexes were flat to

slightly higher, as a dip in Treasury yields after a string of

economic data boosted megacap stocks.

Data showed new orders for key U.S.-manufactured

capital goods

unexpectedly fell in May, while core durable goods orders

fell 0.1% versus forecasts for a 0.2% rise, boosting hopes that

a weaker economy could prompt the Federal Reserve to cut

interest rates in September.

Weekly jobless claims

fell to 233,000, missing expectations of 236,000. Further,

a final print showed the U.S. economic growth increased more

than estimated in the first quarter.

Megacap stocks firmed as Treasury yields slipped after

the data, with Amazon.com ( AMZN ) rising 0.9% after hitting $2

trillion in market value for the first time on Wednesday.

Consumer services led gains with a 0.8% rise,

led by gains in Meta Platforms ( META ) and Netflix ( NFLX ),

while financial stocks were the biggest drag on the Dow,

and the biggest S&P 500 sectoral decliner.

Meanwhile, Micron slipped 5% after an in-line

fourth-quarter revenue forecast disappointed investors hoping

for more upside from the memory chipmaker's performance in the

artificial intelligence boom.

With a handful of expensive heavily weighted stocks

supporting Wall Street's ascent since the last leg of 2023,

market participants have highlighted concerns over the rally's

sustainability and have called out for the need to diversify

portfolios to hedge against possible sharp losses.

"It's really a question of whether corporate earnings in

the tech sector can remain resilient. If they can't, then we

will see probably intermittent profit-taking and small

corrections," said Mike Gallagher, director of research at

Continuum Economics.

"It's going to be a bit difficult for the tech sector to

drive on the market the way that it's done."

Walgreens Boots Alliance ( WBA ) slumped 23.8% after cutting

its 2024 profit forecast and announcing plans to close more

underperforming U.S. stores.

Nvidia ( NVDA ) fell 1.7% in another day of choppy trading

for the AI-trade favorite.

Thursday's data comes ahead of Friday's release of the

monthly personal consumption expenditures (PCE) price index -

the Federal Reserve's preferred inflation gauge.

Meanwhile, investors have largely stuck to their view of

around two interest rate cuts this year, as per LSEG's FedWatch

data, even though the U.S. central bank has projected only one,

and a nearly 66% chance of a cut in September.

President Joe Biden and former President Donald Trump are

set to face each other in the first debate during the day.

At 9:59 a.m. ET, the Dow Jones Industrial Average was

up 12.72 points, or 0.03%, at 39,140.52, the S&P 500 was

up 3.58 points, or 0.07%, at 5,481.48, and the Nasdaq Composite

was up 39.06 points, or 0.22%, at 17,844.21.

Denim maker Levi Strauss slumped 16.7% after

falling short of expectations for second-quarter revenue.

International Paper ( IP ) dropped 10.4% after the world's

largest pulp manufacturer, Brazil's Suzano,

terminated talks to buy the U.S.-based firm.

The S&P index recorded eight new 52-week highs and two new

lows, while the Nasdaq recorded 23 new highs and 58 new lows.