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Walgreens plunges on 2024 profit forecast cut, store

closures

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Levi Strauss drops after revenue misses estimates

(As of 4:00pm ET)

By Ankika Biswas, Lisa Pauline Mattackal and Carolina Mandl

June 27 (Reuters) -

U.S. stocks ended Thursday around the unchanged mark as

investors awaited fresh inflation data, with the Nasdaq able to

eke out a slight gain after economic data showed a continued

slowdown in economic activity, raising investors' hope for rate

cuts.

"The market is in a bit of a holding pattern here for the

PCE because there hasn't been a lot of big catalysts," said Ross

Mayfield, investment strategy analyst at Baird, about the

release of the monthly personal consumption expenditures (PCE)

price index - the Federal Reserve's preferred inflation gauge -

on Friday.

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 investor

beliefs 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.

Benchmark 10- and 2-year yields, which move inversely to

prices, dropped after the data showed a continued, but moderated

slowdown in economic activity, while the 7-year yields edged

lower after a $44 billion auction.

Megacap stocks, such as Alphabet and Meta

Platforms ( META ), firmed as U.S. Treasury yields slipped.

Amazon.com ( AMZN ) rose after hitting $2 trillion in market

value for the first time on Wednesday.

According to preliminary data, the S&P 500

gained 5.44 points, or 0.07%, to end at 5,483.34 points,

while the Nasdaq Composite gained 51.99 points, or

0.30%, to 17,857.14. The Dow Jones Industrial Average

rose 42.07 points, or 0.11%, to 39,169.87.

Micron fell 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, continuing its recent turbulent ride.

Walgreens Boots Alliance ( WBA ) slumped after cutting its

2024 profit forecast and announcing plans to close more

underperforming U.S. stores.

Denim maker Levi Strauss tumbled after falling

short of expectations for second-quarter revenue.

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 59.5% 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, while governor Michelle Bowman reiterated

that she is still not ready to support a central bank rate cut

with inflation pressures still elevated.

"What we've been looking forward for most of the week is

kind of that preponderance of evidence to tip the scales on what

is the direction for inflation," said Rob Haworth, senior

investment strategist at U.S. Bank Wealth Management.