Thursday’s Market Movers: Micron (MU) Dips Despite Earnings Win, Five Below Soars

Key Highlights

• Micron (MU) declined approximately 5% despite surpassing earnings forecasts and announcing a 30% dividend increase, as traders locked in gains following a 348% annual rally
• Five Below jumped roughly 8% following a remarkable 15% increase in comparable store sales and optimistic projections for 2026
• Alibaba’s American depositary receipts slid 4.5% following a significant profit decline and revenue that missed Wall Street expectations
• Newmont led S&P 500 decliners in premarket hours, tumbling 5.4%, amid gold’s retreat on Federal Reserve rate commentary
• dLocal climbed approximately 7% after exceeding Q4 projections and unveiling a $300M stock repurchase initiative

Equity futures drifted lower during Thursday’s premarket session after the Dow Jones Industrial Average slipped to its lowest point in 2026. Concerns about persistent inflation resurfaced following hotter-than-anticipated producer price data, while the Federal Reserve maintained its current interest rate policy.

Shares of Micron Technology retreated roughly 5% before the opening bell, despite the semiconductor manufacturer exceeding profit expectations for its second fiscal quarter. Additionally, the firm boosted its quarterly dividend payment by 30% to $0.15 per share.

Micron Technology, Inc., MU

The company projected adjusted earnings per share between $18.75 and $19.55 for the upcoming quarter, with revenue forecasted at $32.75 billion to $34.25 billion. These projections significantly exceeded analyst consensus estimates.

Market observers attribute the decline to investors cashing out after substantial gains. Micron stock had skyrocketed 348% during the previous 12 months, fueled by robust appetite for memory semiconductors powering artificial intelligence systems.

The selling pressure rippled through the memory chip sector. Sandisk declined 5.5%, while Seagate Technology and Western Digital fell 1.4% and 2.6%, respectively.

Alibaba’s U.S.-traded shares retreated 4.5% following the Chinese online retail behemoth’s report of a steep quarterly profit reduction. Sales figures also fell short of analyst projections for the period ending December 31.

The financial results indicated that advances in artificial intelligence capabilities weren’t sufficient to counterbalance headwinds facing Alibaba’s primary e-commerce operations.

Newmont and Gold Retreat Following Fed Commentary

Newmont emerged as the S&P 500’s biggest laggard during premarket trading, plunging 5.4%. Precious metal prices weakened after Federal Reserve Chairman Jerome Powell indicated the central bank wasn’t prepared to dismiss inflationary pressures stemming from tensions involving Iran.

Elevated interest rates typically diminish gold’s attractiveness relative to bonds and alternative yield-generating investments.

Five Below and dLocal Stand Out as Winners

Five Below emerged as a standout performer, climbing nearly 8% after disclosing a 15.3% surge in comparable store sales during the fourth quarter. Total revenue increased 24.5% compared to the prior year, reaching $1.73 billion.

The value retailer projected first-quarter revenue between $1.18 billion and $1.20 billion, anticipating comparable sales expansion of 14% to 16%. Management also outlined plans to launch approximately 150 additional locations throughout 2026.

dLocal shares advanced about 7% after the Uruguayan payment processing firm exceeded forecasts for revenue, gross profit, and operating income in the fourth quarter. The organization simultaneously revealed a $300 million stock buyback authorization.

dLocal forecasted total payment volume expansion of 50% to 60% for 2026, substantially surpassing Wall Street’s expectations.

Shares of drone manufacturer Swarmer remained relatively unchanged after Wednesday’s 77% surge. The stock had rocketed 520% during its market debut Tuesday following its initial public offering.

Canadian Solar plummeted 13% after providing first-quarter revenue guidance of $900 million to $1.1 billion, considerably below the $1.55 billion analyst consensus estimate.

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