Micron's Stock Drops Despite Strong Quarterly Performance
Stocks fell on Thursday as long-term Treasury yields climbed to levels not seen in over two decades, with the benchmark 10-year yield reaching 5.34%. This rise was driven by a hotter-than-expected ISM prices-paid index and rising crude oil prices above $92 per barrel. Jim Cramer noted that higher yields make bonds more attractive than equities, putting pressure on stocks despite an oversold S&P Oscillator reading of -5.1%. Micron shares declined following what Cramer described as a 'great quarter,' though concerns over its first-quarter gross margin outlook and increased capital spending plans may have contributed to the drop. However, Micron's long-term supply-demand balance remains positive with 26 strategic customer agreements now in place. Cramer expressed optimism about the company’s future but warned of short-term downward momentum before a potential buyback catalyst later this year. Cardinal Health shares rose over 3% after extending its distribution agreement with CVS through June 2032 and reaffirming long-term earnings growth guidance.
Topics: interest rates micron technology stocks treasury yields