Micron Technology Inc MU shares are flat on Monday. The stock gained some 14% last week, bolstered by robust U.S. retail sales data and a surprising drop in initial jobless claims.
The U.S. retail sales report for July showed a significant 1% month-over-month increase, far exceeding the anticipated 0.3% growth. This robust performance, particularly in key sectors such as electronics and appliances, directly impacts semiconductor companies like Micron.
With electronics sales up by 1.6%, the demand for memory and storage products—Micron’s core offerings—is likely to strengthen as retailers and manufacturers ramp up orders to meet consumer demand.
Moreover, the year-over-year increase of 2.7% in retail sales, up from a revised 2% in June, signals a broad-based recovery in consumer spending. This is particularly positive for Micron, as higher consumer spending on electronics often translates to increased demand for semiconductors used in a wide range of consumer electronics, from smartphones to laptops.
What Else: Released last week, the July Producer Price Index (PPI) for final demand increased by just 0.1% month-over-month, compared to June's 0.2% and below the expected 0.2%. Annually, the PPI climbed by 2.2%, down from 2.7% in June and below the anticipated 2.3%.
This lower-than-expected inflation data suggests that inflation pressures are easing. As a result, there is a growing expectation that the Federal Reserve might cut interest rates more significantly.
Before the PPI report, investors had assigned a 52% probability to a 50-basis-point rate cut in September, compared to a 48% chance of a smaller cut. The lower PPI strengthens the case for a larger rate cut, which can reduce borrowing costs and stimulate economic growth.
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How To Buy MU Stock
By now you're likely curious about how to participate in the market for Micron Technology – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
According to data from Benzinga Pro, MU has a 52-week high of $157.54 and a 52-week low of $62.62.
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