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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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Indexes: Dow up 0.15%, S&P down 0.11%, Nasdaq down 0.10%

(Updated at 11:41 a.m. ET/1541 GMT)

By Ankika Biswas and Lisa Pauline Mattackal

June 27 (Reuters) -

U.S. stock indexes were flat on Thursday, as investors

assessed a string of economic data ahead of the Federal

Reserve's closely watched inflation report, while Micron and

pharmacy chain Walgreens Boots Alliance ( WBA ) slumped on disappointing

forecasts.

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.

"We are slowing, but not collapsing. So we continue to

move forward. I think one or two rate cuts are probably

warranted and I'd like to see that before the end of this year,"

said Robert Pavlik, senior portfolio manager at Dakota Wealth

Management.

Thursday's data comes one day ahead of the release of

the monthly personal consumption expenditures (PCE) price index

- the Federal Reserve's preferred inflation gauge.

Megacap stocks firmed as U.S. Treasury yields slipped

after the data, with Alphabet, Microsoft ( MSFT ) and

Meta Platforms ( META ) rising 0.6% to 1%. Amazon.com ( AMZN )

rose 1.2% after hitting $2 trillion in market value for the

first time on Wednesday.

Communication services and real estate

led gains among the major S&P 500 sector indexes,

while consumer staples was the biggest laggard.

Meanwhile, Micron shed 6.5% 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.

Nvidia ( NVDA ) fell 2.3%, continuing its recent

turbulent ride.

Walgreens Boots Alliance ( WBA ) slumped 24.6% after cutting

its 2024 profit forecast and announcing plans to close more

underperforming U.S. stores.

Denim maker Levi Strauss slumped 16% after falling

short of expectations for second-quarter revenue.

At 11:41 a.m. ET, the Dow Jones Industrial Average

was up 59.28 points, or 0.15%, at 39,187.08, the S&P 500

was down 6.15 points, or 0.11%, at 5,471.75, and the

Nasdaq Composite was down 17.06 points, or 0.10%, at

17,788.10.

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.

Meanwhile, investors have largely stuck to their view of

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

even though the Fed has projected only one, and a 60% chance of

a cut in September.

In a policy essay, Atlanta Fed President Raphael Bostic said

inflation "appears to be narrowing" and that should allow rates

cuts later this year.

Further, President Joe Biden and former President Donald

Trump are set to face each other in the first debate during the

day.

Advancing issues outnumbered decliners by a 1.34-to-1 ratio

on the NYSE and by a 1.23-to-1 ratio on the Nasdaq.

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

lows, while the Nasdaq recorded 28 new highs and 86 new lows.