EARNINGS ALERT: MU

Market Overview - The S&P 500 reached all-time highs at the start of the session but experienced a pullback, closing down 0.6% at 6,656 points [16] - Approximately 60% of S&P 500 stocks were in the green, indicating a defensive market with utilities and energy sectors performing well [4][5] - The overall market trend remains upward despite the pullback, with key support levels around 6,650 [2][3] Sector Performance - Energy sector saw a notable increase of 1.7%, driven by a rebound in crude oil prices, which crossed the $61 threshold [11][12] - Consumer staples also showed resilience after a recent sell-off, contributing to a mixed market picture [5][18] - Technology and consumer discretionary sectors faced declines, with technology down over 1% [16][18] Micron Earnings Report - Micron reported fourth-quarter earnings with EPS of $3.30, exceeding estimates of $2.84, and adjusted revenue of $11.32 billion, surpassing expectations of $11.15 billion [19][20] - Gross margins improved to 45.7%, above the expected 44.3%, indicating strong operational performance [20][23] - Guidance for the first quarter revenue is projected between $12.2 billion and $12.8 billion, significantly higher than the street's expectations [21][22] Margin and Growth Insights - Micron's operating margins expanded to 32.3%, up from 23.3% in the previous year, reflecting effective cost management and pricing power [25][27] - The company is experiencing growth across all business segments, including a notable increase in mobile business gross margins [28] - Analysts are optimistic about Micron's ability to sustain growth moving into 2026, with expectations for continued demand in high bandwidth memory and DRAM chips [32][34]