The Bank of Russia unexpectedly maintained its key interest rate at a record-high 21% , defying analysts’ expectations of another significant hike as inflation remains stubbornly elevated. The decision marks a shift toward a more measured approach in balancing economic growth and price stability. Key Details Inflation Concerns: Annual inflation climbed to 8.9% in November, well above the central bank’s 4% target , with inflation expectations reaching 13.9% in December. Policy Rationale: The central bank cited the significant tightening of monetary conditions after October’s 200-basis point hike as sufficient to resume disinflationary processes. Governor Elvira Nabiullina emphasized avoiding both economic overheating and severe slowdowns. Economic Overheating: Elevated government spending on the war in Ukraine and social programs, coupled with labor shortages and rising wages, have fueled strong domestic demand, exacerbating price pressures...
Micron Technology (MU.US) is experiencing its steepest stock decline since March 2020, with shares tumbling as much as 18.6% during trading on Thursday, before recovering slightly to close 16.6% lower. The semiconductor giant’s weaker-than-expected earnings outlook triggered a surge in put options trading, as investors moved to hedge against further losses.
Key Highlights
Stock Performance
- Stock Price: Dropped to an intraday low of $84.61, the lowest since early September.
- Steepest Decline: If it closes at this level, it would mark the worst one-day drop since March 2020 during the pandemic sell-off.
Put Options Activity
- Heavy Trading Volume:
- Over 316,000 put options traded across 19 expiration dates, five times the 20-day average.
- Total options contracts traded (including calls) reached 755,400, making Micron the third most active stock option behind NVIDIA and Tesla.
- Most Traded Put Contract:
- The $85 strike price expiring tomorrow attracted the highest volume, with 22,000 contracts traded.
- Price of this put contract surged 84% as the probability of being in-the-money increased.
Earnings and Outlook
- Q2 Forecast Misses Estimates:
- Revenue projection: $7.9 billion ± $200 million, below the consensus of $8.99 billion.
- Adjusted earnings forecast: $1.43 ± 10 cents, falling short of the $1.92 analysts expected.
- Q1 Highlights:
- Aided by a 400% jump in data center revenue and increased demand for AI-related materials.
Market Concerns and Analyst Views
- CEO Sanjay Mehrotra:
- Highlighted weaker consumer-oriented markets in the near term but anticipates growth resumption in the second half of the fiscal year.
- Analyst Reactions:
- Bloomberg Intelligence: Warned of weak NAND sales and potential margin compression into Q3.
- JPMorgan: Optimistic about long-term prospects, expecting memory market recovery in late 2025 driven by tight DRAM supply and AI server demand.
Average Target Price Revised Downward
- Bloomberg Analysts: Lowered Micron's average target price to $135.33 from $142.35 following the earnings announcement.
Comments
Post a Comment