*

Walgreens plunges on 2024 profit forecast cut, store

closures

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Levi Strauss drops after revenue misses estimates

*

Indexes up: Dow 0.25%, S&P 0.10%, Nasdaq 0.35%

(As of 1:48pm ET)

By Ankika Biswas, Lisa Pauline Mattackal and Carolina Mandl

June 27 (Reuters) - U.S. stocks inched up on Thursday as

U.S. treasury yields declined after economic data showed a

continued slowdown in economic activity, raising investors' hope

for rate cuts.

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, while the 7-year yields edged

lower after a $44 billion auction.

Ross Mayfield, investment strategy analyst at Baird said "a

more friendly Treasury yield profile is helping" stocks, despite

some earning reports that disappointed investors earlier.

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.

"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.

At 01:48 p.m. the Dow Jones Industrial Average rose

100.18 points, or 0.25%, to 39,227.98, the S&P 500 gained

5.59 points, or 0.10%, to 5,483.49 and the Nasdaq Composite

gained 63.32 points, or 0.35%, to 17,868.18.

Megacap stocks firmed as U.S. Treasury yields slipped after

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

Platforms ( META ) rising 0.36% to 1%. Amazon.com ( AMZN ) rose

2.56% after hitting $2 trillion in market value for the first

time on Wednesday.

Communication services and consumer discretionary

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

while consumer staples was the biggest laggard.

Meanwhile, Micron shed 6% 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 1.27%, continuing its recent turbulent

ride.

Walgreens Boots Alliance ( WBA ) slumped 25.22% after

cutting its 2024 profit forecast and announcing plans to close

more underperforming U.S. stores.

Denim maker Levi Strauss slumped 16.5% after

falling short of expectations for second-quarter revenue.

Advancing issues outnumbered decliners by a 1.44-to-1 ratio

on the NYSE. There were 134 new highs and 64 new lows on the

NYSE.

The S&P 500 posted 8 new 52-week highs and 2 new lows while

the Nasdaq Composite recorded 32 new highs and 103 new lows.

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.

Further, President Joe Biden and former President Donald

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

day.