After Wednesday’s unexpected sell-off late in the day, tech markets rebounded by around 1.26% on Thursday. Micron (MU) issued a strong outlook for smartphone and PC markets. MU stock gained 8.6%. This should set up the perfect bullish move for pre-holiday Friday.
Doom and gloom investors who are bracing for the bubble to burst continue to be wrong. Conversely, those who claim the market went nowhere in two years are not invested. Investors who averaged into the market holding Nasdaq (QQQ) and S&P 500 (SPY) did well.
In Canada, BlackBerry (BB) lost 12.68% after posting non-GAAP earnings per share of one cent. Revenue grew by 3.6%. The Q4 revenue outlook of as low as $150 million is below the $190 million consensus estimate.
The Fed’s intent, but no immediate action on, cutting interest rates is the positive catalyst. Mortgage rates are now at 6.67% for the 30-year fixed. At a low not seen since June, home buyers are not snapping up properties. Watch Redfin (RDFN), Opendoor (OPEN), and Zillow (Z) move today. Weak home sales will allow the central banks to follow through on a rate cut in mid-2024.
